Xenophobia: Real Estate business hurt in SA- Expert.
Bishop Trust Robert Atolagbe, a real estate expert, says xenophobic attacks are affecting the real estate sector in South Africa.
Atolagbe told the hotnewsroundup.com on the phone from Johannesburg, South Africa that the sector was experiencing low returns
due to the Xenophobic attacks.
” At the moment, we are having very low response in the real estate sector in South Africa, whether in terms of buying , rental or investment”
He said, for instance, in rental ,most of the people who rent houses in South Africa are foreigners
” Foreigners are the ones who run the shops or supermarkets. If this protest against foreigners continues , it will adversely affect the sector.
” So many of the shops have closed because the owners are afraid. And that in way has affected the real estate business due to low income in terms of rent,” he said.
The expert said that buying of property has also been affected by Xenophobic attacks.
He explained that before a property is bought, a real estate expert is expected to show the prospective buyer on inspection of the property.
” That practice is on the low side now,” he said.
Atolagbe said that many shops had closed because the owners were afraid that they would be looted by the protesters.
He, however, said that some shop owners are watching the situation of events, especially the planed June 30 March and March protest against foreigners in South Africa.
He said that the South African government has beefed up security to manage the June 30 protest, to ensure that it was peaceful.
Atolagbe said that if the attacks continue, the long time effect will be reduced foreign investment in property business in South Africa.
” Also, in terms of property investment, there is the premium market in places like Cape Town or Durban, where investors come and buy property and go.
” But, as we speak, there is delay in purchase by such investors. Banks are also delaying to approve bonds for people who want to buy property because they want to wait and see what will happen before granting such bonds for property. ” he said.
He said in the alternative, investors will choose nearby favourable destinations like Namibia or in West Africa for investments.
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