Real Estate Investors, keep your eye on this town. Stellenbosch is famous for its attractive wine destinations, beautiful scenery and rich history. But there is more to the old Winelands town than you might think.
Wesgrow reports that the GDP of the greater Cape Winelands area grew from R33.3 billion in 2006 to R43.2 billion in 2015. Its largest sectors: finance, real estate and business services, contributing R10 billion in 2015.
Stellenbosch has distinguished itself as a hub for innovation and business ventures that have attracted international attention, proving that it is certainly not a one-horse town – and, for investors, increasingly worth betting on.
“Stellicon Valley” – an innovation hub
Stellenbosch has emerged as a hotspot for exciting technological advances, ranking third among all African cities in fDi Intelligence’s study of global biotech locations.
Stellenbosch has become a breeding ground for tech start-ups, with the University affiliated business startup incubator, The LaunchLab, for example, having seen R110 million raised in investment capital for innovative start-up businesses since 2006, and the inception of more than 73 businesses under its guidance.
The town’s thriving business sector has attracted global interest, and hosted seven FDI projects valued at R2.8 billion in the last 2 years.
Some have subsequently gone so far as to refer to Stellenbosch as ‘Stellicon Valley’.
Real-Estate Developments Answer the Innovation Call
With ever-expanding business horizons in the district, but limited space within town central and growing traffic congestion, there has been an increasing need for real estate that would allow work close to home – additional to elements like security, space and luxury, that have become synonymous with South African estates.
Some innovative developers have answered the call.
One example: Nooitgedacht Village. Located on a historic estate a stone’s throw from Stellenbosch, the Village is gearing to develop an office park with boutique offices for sale or rent to accommodate the growing need for office space in the area, combined with the comfort and security of an estate lifestyle.
The greater vision of the Estate is dazzling, offering residential options from start-up, to luxury manor-style homes, along with a comprehensive list of lifestyle elements to be added: A 2.3Ha eco park, a Village square with various retail components, sublime running and cycling trails, equestrian facilities and a hotel with a clubhouse and fully equipped gym. All of this around the corner from your Village office.
Estate Property: A Good Bet amidst Political Insecurity
In an economy that sees much fluctuation due to political insecurity, estate property certainly presents an attractive option for those looking to invest in real estate. Paul-Roux de Kock, Analytics Director at Lightstone, writes that “Although luxury-market buyers are under pressure, the estate-housing market, in general, doesn’t dip as low or peak as high as the rest of the luxury market. We therefore expect it to outperform the luxury market during the current downturn”.
With the ever-extending possibilities that estates like Nooitgedacht Village now offer, especially with regards to bringing work and leisure together within its bounds, and the stability of these investments compared to the rest of the luxury property market, estate property in the Stellenbosch area presents a great opportunity for investors on an international stage.