South Africa is starting to look particularly good to foreign investors as confidence in the market has steadily grown over the past year. The BRIC group is set to include South Africa and to become the BRICS group which should further boost the country's popularity.
All the countries in this group are tipped to become global economic powers which could one day eclipse the economies of today's richest countries. This exclusive group includes Brazil, Russia, India and China who are all countries which have proved to be of great interest to property investors.
Property prices in South Africa have risen an average of 8.3% in the previous year, but one of the most popular suburbs of South Africa saw prices rise by nearly 50%, although these massive rises are thought to now have stabilised but should still offer returns of between 8 and 12%.
Many property developers are concentrating on exclusive developments which should appeal to foreign investors, and which offer innovative designs which will always attract buyers. Some foreign investors may have been worried about the stability of the Rand, but the last three or four years have shown it to be one of the best performing currencies.
The South African president Jacob Zuma had been petitioning to join the BRIC group for a long time, and the invitation to join came from the Chinese president Hu Jintao.
The Chinese have long been aware of South Africa's rich natural resources and are very keen to forge a good relationship with this country. There seems little doubt that investors would be wise to look at South Africa very closely.
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