The rumoured moratorium on foreign land ownership in South Africa got many people thinking about the global community?s interest in our beautiful land and has made the desire to own a piece of Africa a topic that bears a closer inspection.

Why are foreigners investing in South Africa?

Many people have said that South Africa is the world in one country. It offers the global community many hues of beauty, a feast of cultural diversity, unsurpassed quality of life and some of the friendliest people around. From the Western Cape and the Garden Route all the way up to the magic of the Kruger National Park, South Africa is certainly a country of choice when it comes to leisure and luxury.

Beyond that, South Africa offers a very promising economic climate with our first world infrastructure and energetic emerging market status. The South African banking sector is rated in the top ten globally, and according to the World Bank Report for 2005, ease for doing business in SA ranks us in the top 30 countries worldwide. The stock exchange is also a fair reflection of economic capabilities with the JSE Limited rated as the eighteenth largest exchange in the world.

The economic fruitfulness of South Africa has perhaps most clearly been highlighted by the influx of significant foreign economic investment over the last two years. Some of the headlines from 2005 include Barclays? acquisition of a majority stake in ABSA, Tata announcing its plans to invest about R1.5-billion in South Africa and General Motors with its plans to invest US$100-million in their local production facilities. In February this year British company Vodafone signed off a deal whereby it has increased its stake in Vodacom from 35% to 50% through its 15% stake in local investment firm VenFin. And the most recent foreign acquisition to hit the headlines was the purchase of the V&A Waterfront in Cape Town by a British and Dubai led consortium.

There are many reasons why foreigners would invest in SA ? we?re a beautiful, exciting, affordable and economically growing paradise. And to top it all off, it?s relatively easy to buy a home here as foreigners can secure a purchase with a 50% deposit and have access to a 50% loan. Add to this the increased ease of transaction through on-line real estate operations, and buying property in SA becomes a very viable option.

Who is buying property here?

Although it?s hard to quantify exactly who is buying from where, there are some nationalities that stand out in their love for our country. At the top of the list is the United Kingdom with about 50% of foreign purchases falling under their flag. This excerpt by Kate Baddeley of World of Property gives a good indication as to why this figure is so high: ?For many UK citizens, South Africa is a home from home ? almost everyone speaks English, there is a large expatriate community and a number of English newspapers, and since there is only two hour?s time difference with Britain keeping in touch with people back home is easy. It?s a country of huge variety, offering something for everyone.?

Many British people also own property in South Africa to escape the freezing cold of the Northern Hemisphere winter and only occupy their homes for 6 months of the year. The same naturally applies to countries on the European continent which has resulted in South Africa traditionally being a place of choice for many Dutch and German nationals too.

Another and more recent trend is acquisition of property from members of the United Arab Emirates. Doors have been flung open between the two countries and mutual interest has grown over the last few years. According to Alex Meyer of international real estate company Engel & Völkers Dubai, there are currently approximately 150 000 South Africans already living there, and some cite the recent tension in the region as a reason why more and more UAE members are choosing to come to the southern most tip of Africa.

With the brag list of global investors who follow the competition around the globe tagging along. Other countries from which South Africa has received a fair amount of property investment include: Taiwan, Nigeria, Zimbabwe, Mozambique, China, Pakistan, Taiwan, Portugal, Greece and Italy.

What are they buying?

?For many foreigners South Africa is the ideal second or holiday home. Although we compete with the South of France and Spain in this offering, our favourable exchange rate makes us an incredibly competitive destination as we offer prime real estate for a fraction of the cost? says Niël Cronje, CEO Engel & Völkers South Africa. ?South Africa is also known for its ease of life and emphasis on quality over quantity. Combine that with a highly affordable exchange rate and you find that many internationals choose S.A. as the ideal place to retire ? it?s laid back enough to offer them rest and vibrant enough to keep them young!?

This comment by Kate Baddeley sums it up: ?Whether you?re after a second home to enjoy a little relaxation or somewhere to spend the long winter months, there?s something for absolutely everyone in sunny South Africa ... Imagine swapping your modest suburban semi for a luxurious property with far-reaching views, acres of lush tropical garden and a swimming pool.?

Where are they buying?

Coastal properties are high on the list of choice locations with the Western Cape still leading the way followed closely by KZN and increasingly by the Eastern Cape. Johannesburg is also viewed as a good location for city lovers with MercerHR.com having consistently ranked it as one of the cheapest cities in the world with property, food and entertainment highlighted as core elements of the value offered.

With the approach of World Cup 2010, there has already been an increase in the purchase of game lodges and bushveld stands by investors as the appeal of ?Wild Africa? grows in the global imagination. In preparation of the huge influx of soccer fans over that period, there has also been a rise in the purchasing and development of accommodation facilities such as hotels, B&B?s etc.

Another sector of investment is that of international buyers settling in euro-centric towns such as Grahamstown, Franschoek and Smithfield. With the colonization of SA by the Dutch and British and the influence of the French Huguenots, many South African towns offer foreigners a literal home away from home where they can live in houses and communities that echo the styles and traditions of their homelands.

With less than 1% of the country?s property being owned by foreigners, most people view having a neighbour who flies a different flag in their backyard a very acceptable thing. Knowing that with each foreign national investing in our beautiful country jobs are created and the economy is strengthened; many, if not most South Africans put a proverbial welcome mat at this ?front door of Africa? and bid the global community a pleasant stay.