The political climate in South Africa has been under the microscope in recent times as Deputy President Cyril Ramaphosa took over the reigns as leader of the ruling party. The Rand immediately gained traction in the days following his appointment and has remained positive since.
There appears to be a shift in political messaging with the intention hopefully being to restore confidence in our markets for foreign and local investors.
It is essential that Government avoid volatile political decisions that affect our economy and influence public economic perception. Despite Harcourts recording an incredibly successful 2017, many sectors of the property market experienced stagnation and a decline in activity
There are many factors that influence buyers and sellers willingness to engage in real estate transactions, however, to a large extent buyers and sellers gauge potential success on general reports and opinions of the market, especially in an emerging market.
Real estate is an investment, and for most it will be the single largest investment of our lives, so it is understandable that we consider all the external elements before committing. This ideology spills over into other forms of investment too, especially commercial real estate, which assists greatly in business growth and entrepreneurship. When the private sector remains a little apprehensive to invest in real estate - business growth and employment are directly affected.
It is with this in mind that Government needs to aim for stability over the short term. Ensuring our markets remain steady enough to avoid fluctuations that either put our consumers under pressure with rising costs or deter extensive capital investment.
Harcourts Africa Chief Executive Officer