Plettenberg Bay is a place that many people will be familiar with, although for reasons unrelated to property investment and real estate expenditure.
The Bay is one of the premier tourist destinations in Africa, receiving large numbers of tourists each year both from other parts of the South African country and from international flights coming into the country as well. This means that people are looking to purchase property for regular voyages to this part of the world, and it also means that tourism dollars are making the local economy white hot.
However, the real estate market is starting to heat up alongside the tourism market, creating a number of interesting situations for people looking for new and appealing places for overseas property investment.
A good example of this is a recent purchase of beachfront property in the Plettenberg Bay area. The investor, who has asked to remain anonymous, paid SAR 25 million for the property, breaking the previous record of SAR 12.5 million by a whopping 2 to 1 margin. Purchases like that tend to put exclamation marks on property situations that are looking strong for the present and the future, and this purchase was little different. It sparked a number of interested enquiries into the availability of Plettenberg Bay property almost immediately upon hitting the airwaves.
The demand, which was already higher than the supply in the Plett area, is now increasing while the supply is staying still. That is a recipe for quick property value increases which in turn is a recipe for some quick profits to be made in the South African real estate market specifically in the Plettenberg Bay area.
Local analysts agree with that conclusion, citing that while it was previously difficult to determine whether buying or selling was the way to go in the Plett market, recent events and circumstances have resulted in what appears to be a heating up of the property market in the surrounding area.
