2009/02/10

An eclectic collection of buyers including transferees, wealthy retirees and investors are purchasing properties in Nelspruit.

So says Carl Jacobs, principal of leading local agency Homenet Nelspruit, who notes that as the growthpoint for Mpumalanga, Nelspruit is increasingly attracting transferees from other towns and cities who are bringing their families with them. Typically these buyers are purchasing freehold homes priced at around R1,3m.

Overseas buyers, meanwhile, are buying into new developments with a view to letting and are purchasing guesthouses, while wealthy retirees are also making their mark, buying quality lock-up-and-go type accommodation priced at around R1,5m and above.

"But investment isn't restricted to outsiders," says Jacobs.

"Locals looking to upgrade or downsize are also generating activity in this market."

The Kruger Mpumalanga International airport located 20 minutes from Nelspruit has done much to channel tourist traffic into the area, with flights arriving from all major cities daily. Major malls and chain store groups have also sprung up in response to increased demand for such amenities.

Fuelling this momentum, says Jacobs, is the fact that Nelspruit is a 2010 Soccer World Cup host city and the construction on the 2010 Mbombela stadium is well under way.

Meanwhile, activity in the rental market is relatively stable. Many who have re-located to the area are renting temporarily until they find a property they like. And many landlords are opting to waive rental escalations in order to retain good "permanent" tenants.

Typical freehold rentals in the area are priced at R6k a month while apartments are leasing for R3,300 a month.

Property24