South Africa is seeing a steady growth of retirement property investment and development. This is according to Visual International Holdings, which recently listed on the JSE AltX.
Visual develops mixed-use residential suburbs for the middle-income market – the fastest growing residential property market segment in South Africa. In doing so, not only does it create much-needed quality housing for aspirant young families, it also houses people at all life stages, including retirement.
Charles Robertson, Managing Director of Visual says the growth of retirement property is a definite global trend, particularly in countries with an ageing population. While South Africa has a relatively young population, there is a solid demand for quality retirement property investment options, both for owner-occupiers and own-to-let.
Robertson adds the local proliferation of retirement developments responds to the market’s need for retirement property. And, as our young population ages, the demand for retirement accommodation is only going to grow.
Robertson cites Visual’s Stellendale Lifestyle Retirement Village located in Cape Town’s Northern Suburbs as an unusual, but socially beneficial, way of meeting the growing need for retirements estates.
“The Stellendale Lifestyle Retirement Village forms part of the larger residential component at Stellendale, a self-contained suburb complete with a school and shops. This means that Stellendale is more than a retirement estate, it is an important part of a community,” says Robertson.
South African’s are also increasingly looking toward investing in buy-to-let property as part of their retirement savings strategy. Robertson says the primary advantage of this approach is that it allows people much greater control over the benefits they would like to receive when they retire.
Robertson notes the popularity of investing in buy-to-let properties is also due to the opportunity for ordinary salary-earning South Africans to steadily build a portfolio of property that can deliver a more defined benefit at retirement, as opposed to fixed monthly contributions in which the benefits at retirement have the potential to be somewhat uncertain.
To this end, Visual builds quality housing and develops mixed-use suburbs in strategic high-growth nodes across South Africa. It identifies suitable land for its developments, near jobs and infrastructure, and includes retirement estates as an integrated part of the model.