Franschhoek investment property in demand

Franschhoek investment property in demand

View of L’Ermitage Chateau & Villas in Franschhoek.

Although the strong demand for luxury property in the Cape Winelands has seen some of the world’s most iconic entrepreneurs like British-born Sir Richard Branson, Analjit Singh of India and the Rupert Family invest in the Franschhoek Valley region, the economy of this world-renowned wine-producing town has to a large extent been driven by national and international demand for properties that yield the highest investment return.

“This is a demonstration of the confidence in the Franschhoek valley property market,” says Jacques Fouché., chief executive and founder of the IGrow Group of Companies, which specialise in creating wealth for investors through bespoke real estate and property investment services.

“The Franschhoek property market has experienced significant investment growth in the past five years, with property values increasing by as much as 149% across all residential sectors. This benchmarks the region as one of the highest property growth areas in South Africa.

“Internationally acclaimed as a wine producing and culinary centre, with its boutique wineries and historic wine estates, Franschhoek is host to three of the top 10 restaurants in the country, and is situated within a 30km radius of world-class golfing estates such as Val de Vie, Pearl Valley and Stellenbosch – adding to the appeal of the region.”

Fouché says Franschhoek remains a niche property investment area, and is particularly attractive to the discerning buyer and international tourism sector.

“More and more people want to retire away from the city and Franschhoek is especially appealing as it offers a relaxed lifestyle in a magnificent country setting, while still being within easy reach of Cape Town’s CBD and surrounding attractions.”

According to the latest Lightstone report, prices for sectional title homes in the region increased by 25% in 2018, with price growth for freehold units spiking to 113% during the same period.

“Ongoing demand for property in the Cape Winelands has brought the high returns from this kind of investment into sharp relief,” says Gerhardt Jooste, general manager of IGrow Real Estate, a subsidiary of the IGrow Group of Companies.

“We have also seen an increase in foreign investors attracted to the sectional title lock-up-and-go lifestyle. These property investments serve as a summer home owners can move to during the European winters, or as a long-term retirement investment,” says Jooste. “This has led to an upswing in new property developments with estates like La Bourgette, L’Afrique Verte, Le Pettit and L’Ermitage recently being released in the area.”

L’Ermitage Chateau and Villas offers the discerning property investor a superior lifestyle opportunity in a French-inspired country village setting. All 35 units in phase one were sold in 2009, and the second phase has just been released with 35 units available.

Set against the backdrop of the Franschhoek mountains with their vine-covered slopes, and the town’s quaint cobbled streets, fountains, and a conference venue this estate consists of two-bedroom, two-bathroom villas with fitted kitchens, open plan lounge/dining rooms and large private patio areas. Owners also have access to the amenities offered by the hotel on the estate.

These villas are priced from R2.95 million. Construction will commence March 1019, and is expected to be completed within the next 18 months.

“These villas were designed for residential use but with the flexibility of being used as self-catering accommodation or hotel rooms. Given the shortage of rental property in the Cape Winelands, and the increasingly high demand for superior rental accommodation in the Franschhoek Valley region, L’Ermitage property owners can benefit from ongoing income and return through the rental pool services offered and managed by the L’Ermitage Hotel,” says Jooste.

L’Ermitage forms part of the original Franschehoek Agricultural Estate, and was recognised as one of the top 10 residential estates in South Africa in 2017, along with estates like Val de Vie. Its first phase was acclaimed as the best development in Africa at the International Property Awards.

“There is extensive interest and demand from investors who recognise the long-term profitability of this exclusive village. With prices of other new developments in the area ranging from just under R3m to about R8m, we are confident that investing in the L’Ermitage Chateau and Villas will yield significant investment growth, particularly for those seeking the benefits and peace of mind that comes with owning property in a first class, premium security lifestyle estate,” concludes Jooste.

Call Gerhardt Jooste on 021 979 2501 or email gerhardt@igrow.co.za.