{"id":734543,"date":"2024-01-07T07:00:00","date_gmt":"2024-01-07T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=734543"},"modified":"2024-01-07T07:41:57","modified_gmt":"2024-01-07T05:41:57","slug":"big-shift-for-property-investors-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/734543\/big-shift-for-property-investors-in-south-africa\/","title":{"rendered":"Big shift for property investors in South Africa"},"content":{"rendered":"\n<p>Legal experts say that the increasing global discussions on sustainability have caused a notable change in the approach to various aspects of daily life. <\/p>\n\n\n\n<p>As a result, investing in &#8220;environmentally conscious property&#8221; in South Africa is seen as increasingly advantageous and provides a competitive edge to investors.<\/p>\n\n\n\n<p>According to Lulama Lobola, a senior associate at law firm Cliffe Deffer Hofmeyer, like many other regions, South Africa is witnessing a surge in demand for sustainable and eco-friendly real estate.<\/p>\n\n\n\n<p>&#8220;Embracing green financing becomes not just a responsible choice but a strategic one for long-term success in the dynamic and evolving real estate market,&#8221; she said.<\/p>\n\n\n\n<p>A tool greatly incentivizing people is the increasing prevalence of <a rel=\"noreferrer noopener\" href=\"https:\/\/www.treasury.gov.za\/comm_media\/press\/2022\/SA%20Green%20Finance%20Taxonomy%20-%201st%20Edition.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.treasury.gov.za\/comm_media\/press\/2022\/SA%20Green%20Finance%20Taxonomy%20-%201st%20Edition.pdf\" target=\"_blank\">green financing<\/a> to promote environmentally conscious practices and enhance their bottom line. <\/p>\n\n\n\n<p>Developers, investors, and buyers are increasingly turning to green and sustainability-linked loans. <\/p>\n\n\n\n<p>&#8220;Green loans&#8221; are specifically designated for projects that have environmental benefits &#8211; such as constructing energy-efficient buildings or installing renewable energy systems, whilst sustainability-linked loans tie interest rates to predefined sustainability targets.<\/p>\n\n\n\n<p>The government also makes the shift to green in the real estate sector more appetizing with various incentives such as tax breaks, grants, and fast-tracking of approvals for green projects.<\/p>\n\n\n\n<p>Apart from the environmental advantages and government incentives, there are strong financial reasons for real estate developers and investors in South Africa to adopt green financing, Lobola said.<\/p>\n\n\n\n<p>The increased market demand for sustainable and eco-friendly real estate in the country benefits buyers, developers and sellers. <\/p>\n\n\n\n<p>Market studies show that properties with green certifications or sustainable features not only spend less time on the market but they seemingly attract more potential buyers and tenants.<\/p>\n\n\n\n<p>Apart from buyers&#8217; potential environmental reasonings, many turn to these green buildings as a way to counter the rolling blackouts and interruptions to water supply that are increasingly prevalent in the country.<\/p>\n\n\n\n<p>&#8220;Prospective purchasers and tenants are increasingly prioritising sustainability, and green buildings are perceived as more attractive and responsible choices. <\/p>\n\n\n\n<p>&#8220;Such properties often command higher rental and sale values, creating a financial incentive for developers and investors to integrate green practices into their projects.&#8221; said Lobola. <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <\/strong><a href=\"https:\/\/businesstech.co.za\/news\/government\/727092\/critical-new-climate-change-laws-for-south-africa-get-the-green-light\/\">Critical new climate change laws for South Africa get the green light<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Property developers and investors are shifting their focus to take advantage of a host of benefits and incentives offered by going green in South Africa.<\/p>\n","protected":false},"author":101,"featured_media":677995,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[4038,18975,16362],"class_list":["post-734543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-property","tag-property-investors","tag-sustainability"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/734543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/101"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=734543"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/734543\/revisions"}],"predecessor-version":[{"id":740823,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/734543\/revisions\/740823"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/677995"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=734543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=734543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=734543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}