Property News

Invest in a reserve in Tanzania

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ccording to Knight Frank’s Prime International Residential Index (PIRI 100), the average value of luxury residential property increased by 8.4% last year, with many wealthy buyers shifting their focus from urban real estate to larger homes with more outdoor space in different towns, provinces and often countries.

In spite of tough economic times due largely to the pandemic, global wealth grew during the preceding two years, resulting in a 10% increase in High-Net-Worth (HNW) individuals worth more than $30m and, along with it, a spike in the demand for luxury real estate.

“Initially, the pandemic stalled investment spending by these individuals, but since the easing of restrictions and the reopening of the property market, the uber-rich have been keen on investing,” says Grahame Diedericks, international liaison for Lew Geffen Sotheby’s International Realty and manager principal of the Midrand office.

The 2022 Douglas Elliman and Knight Frank Wealth Report reveals that a large share of private capital is being put into property, with private investors increasing real estate investments by 52% in 2021.

“We are witnessing an increase in demand for homes that are not merely away from the hustle and bustle, but act as authentic retreats; remote properties where one can get away from it all, such as a unique development we are marketing in Tanzania at the moment,” says Diedericks.

Situated on a private reserve of about 4,046ha, the Osero Safari Club offers discerning investors an opportunity to build their own ultra-luxurious hideaway in a pristine location, complete with luxury amenities and services.

“There are only 20 4ha lots available in this sustainable residential development and buyers are welcome to appoint their own architects if they prefer,” says Diedericks.

“Design guidelines have been developed to ensure the integrity of the community and surrounding wilderness and properties will be run on sustainable energy sources.”

Joburg countryside estate booms

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number of full title freehold stands, plot-and-plan and sectional title opportunities are launching in Avianto Estate – a Northlands Property Group development which is home to an existing residential component, Le Jardin, comprising 115 freehold stands.

Situated in Muldersdrift,  the estate, with its sprawling lawns, indigenous trees and the Crocodile River flowing through it, offers residents a country lifestyle close to urban conveniences such as shopping centres, schools, hospitals and Lanseria airport.

Developments to be rolled out here in the coming months include Verona – comprising 73 turnkey opportunities and 89 sectional title stands; San Donato – comprising 164 sectional title units; Valencia – a retirement village with assisted living facilities; Ardenza – 227 freehold stands; and Equestria, a development that will offer affordable equestrian living with stables, paddocks and horse trails.

“Each of these developments offers buyers something unique,” says Leonhard Jonas, CEO of Avianto Estate. “There are homes for young families starting out and retirees wanting a low-maintenance home that doesn’t sacrifice on aesthetics.”

Here residents can enjoy a work-from-home lifestyle with numerous top-class amenities available within the protected confines of the 300ha estate. These include picnic spots, a children’s play park, off-leash dog park, catch-and-release dams and hiking and biking trails.

A well-appointed sports club, with tennis and squash courts and an outdoor gym, along with Pilates and yoga studios, inspires an active lifestyle.

Construction of a heated indoor swimming pool and gym will commence next year. Various restaurants and a micro-distillery are also on the estate.

The Avianto Estate Private School offers education to pre- and primary school children and is within walking distance to homes here. No enrolment fees apply.

An excellent security system, which includes security guards, is also part of the offering and investment in infrastructure and road upgrades will ensure the development is sustainable for future generations.

Sustainability is a top priority with all the new homes encouraged to have plumbing structures which support grey water systems, with solar water heating, LED lighting and solar energy plants provided to all sectional title developments. Additionally, the estate has implemented a number of green living practices for residents, from recycling to the rehabilitation of the Crocodile River.

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Highlights from latest wealth report

Henley & Partners’ New World Wealth Report 2022 reveals Africa’s most affluent cities and the increased popularity of lifestyle estates

Africa’s wealthiest cities named

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he Henley & Partners Wealth Report 2022 recently reviewed the wealthiest cities in Africa by total private wealth. ‘Total private wealth’ refers to the private wealth held by all the individuals living in each city, including all their assets (property, cash, equities and business interests) less any liabilities.

Africa’s two wealthiest cities are in South Africa with Johannesburg the wealthiest, with total private wealth of $239bn and Cape Town in second place with total private wealth of $131bn. Africa’s most affluent cities are:

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Johannesburg: Most of the city’s HNWI wealth is concentrated in the suburbs of Sandhurst, Hyde Park and Westcliff. Major sectors in the city include financial services (banks) and professional services (law firms and consultancies).

Cape Town: The city is home too many of Africa’s most exclusive suburbs including Clifton, Bantry Bay, Fresnaye and Bishopscourt. Home also to a number of top-end lifestyle estates including Steenberg, Atlantic Beach and Silverhurst Estate. Major sectors include real estate and fund management.

Cairo: Located along the Nile River, Cairo is one of the world’s most important cities historically. It is also home to more billionaires than any other city in Africa. Major sectors include financial services, telecoms and tourism.

Lagos: The largest city in Africa (in terms of its overall population) and the economic hub of West Africa. Affluent parts of Lagos include Ikoyi and Victoria Island. Major sectors in the city include oil, gas, transport and financial services.

Durban and Umhlanga: Figures for this area include wealth held in Durban, South Africa’s third-largest city, and the residential towns of Umhlanga, La Lucia and Ballito, north of Durban. Umhlanga is especially affluent and is home to a large number of HNWIs.

Nairobi: Nairobi is the economic hub of East Africa and one of the fastest growing cities in the world. Affluent parts of Nairobi include Runda Estate, Lavington, Kitisuru, Karen and Muthaiga. Major industries include financial services, real estate, tourism, media, clothing, textiles, processed foods, beverages and cigarettes.

The rise of lifestyle estates

According to the report, lifestyle estate living is on the rise in Africa, especially among the wealthy.

South Africa is a global pioneer in estate living and home to many of the world’s best lifestyle estates, including Val de Vie, Steyn City, Fancourt, Pezula and Steenberg.

Estate living is also popular in Mauritius, especially among wealthy expats. Notable top-end estates include Anahita Mauritius, Mont Choisy Le Parc and the One&Only Le Saint Géran Private Homes.

Thanks to recent strong growth, luxury estate apartments in Mauritius are now among the most valuable in Africa, with prime prices reaching as high as $5,000 per square metre, similar to prices in exclusive Clifton and Bantry Bay.

Estate living is also starting to take off in several other African countries including Morocco and Egypt.

Reasons for its rising appeal across Africa include security and privacy (access gates and private security personnel), lifestyle and community (large open spaces, communal leisure facilities, children’s playgrounds and schools), facilities (on-site gyms, spas, golf courses, horse riding, tennis, cycling, fishing and jogging paths) and limited and controlled traffic (ensuring greater safety for children).

Recent lifestyle estate trends in South Africa

Based on the latest estimates (for June 2021), 48% of South African HNWIs either live in or have second homes on lifestyle estates.

This percentage has been rising steadily over the past decade ñ in 2011 it stood at about 30%. Affluent buyers in South Africa are increasingly moving towards estates that have apartments. In line with this, most new luxury estate developments in South Africa focus on apartment living rather than investing in houses.

There is a general movement away from traditional golf estates and rather towards wildlife and parkland estates. Retirement estates (for over 60s) are also becoming more popular.

Most developers are now creating small neighbourhoods within their lifestyle estates, as opposed to the old model where houses were spaced evenly around the entire property. The new model allows for more parkland and open spaces between neighbourhoods.

Lifestyle estates with parklands and wilderness areas have also become more popular.

Many HNWIs have chosen to work remotely and live in smaller towns. For instance, a large number of South African HNWIs are now working remotely from affluent small towns such as Hermanus, Plettenberg Bay and Franschhoek. Lifestyle estates in these towns have benefited.

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