According to Knight Frank’s Prime International Residential Index (PIRI 100), the average value of luxury property residential 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 property real estate. “Initially the pandemic stalled investment spending by these individuals, but since the easing of restrictions and the reopening of the luxury 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 ultraluxurious hideaway in a pristine location, complete with luxury property 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 all properties will be run on sustainable energy sources.”