Somerset West and surrounding areas have seen growth of over 300% since 2001 and there is little doubt that this trend will continue. Making Mzuri Estate an attractive investment that will deliver impressive growth and set a new benchmark for Somerset West.
The Western Cape’s residential property has significantly outperformed the rest of the country in recent years. According to the latest research by FNB Household and Property, using Deeds Office Data from surrounding areas in the Cape Metro, the average price of properties on the Atlantic Seaboard in Cape Town has doubled since 2012, and is up more than sevenfold since 2001. The drivers of such demand is a sustained semigration pattern from the likes of Gauteng, KZN and the Eastern Cape into Cape Town, as well as the continued investment by international buyers.
Considering this in real terms (after taking inflation into account), South Africa’s average house prices on a national level has not performed well since 2012. However Cape Town has flourished, with positive growth trends and a resilient market which is attracting significant investment.
Furthermore, with the value of properties in central Cape Town becoming less and less affordable, the surrounding areas are set to cash in and go from strength to strength.
“As demand continues to outstrip supply, surrounding areas such as Somerset West become attractive investment options. In fact Somerset West is proving to be a very popular investment destination. This is due to its unique environment within the Winelands boasting all and more amenities offered by city living”.
The Mzuri Estate is Somerset West’s latest residential development and offers a solid return on investment. It is located on Bizweni Avenue in Somerset West nestled on the slopes of the Hottentots Holland Mountain range, facing the dramatic sweep of False Bay.
The investment strategy put forward to Mzuri’s purchasers is intended to be a simple one. Whether a seasoned investor or a first time home buyer, Mzuri offers an opportunity to invest into one Cape Town’s most sought after winelands destinations that is showing an outstanding forecasted return on investment. Added to this is the underlying promise of strong capital appreciation which has become inherent in the Cape Town market. Mzuri will not compromise on this promise nor the quality of the product that it aims to deliver.
In addition, rental demand in Somerset West continues to be extremely strong as it is driven by a number of factors. Tenants are seeking high quality, modern, open plan living at relatively affordable pricing, and this is what Mzuri offers.
At conservative estimated asking rentals, an investor can expect the following attractive returns:
- Long term rentals with net yields of up to 6,79%
- Short term (Airbnb) rentals with net yields of up to 14,47%
- Long term rentals including Section 13 tax allowances with net yields of up to 9,54%
- Short term (Airbnb) rentals including Section 13 tax allowances with net yields of up to 17,07%.