Nicola Mawson
Sunny skies, braais, the bush, the people and South Africa’s “soul” are some of the reasons South Africans are returning home from various countries, such as the UK, after the formation of the Government of National Unity (GNU).
These are among sentiments expressed in queries sent to estate agents at a time when local property prices are increasing at a rate below inflation.
As one expat told Business Report: “I want my soul to be alive again.” Others said: “It’s just a feeling and a vibe I can’t put into words.” Another noted that South Africa’s food, people, diversity and nature were also reasons for returning.
Currently, property inflation is at 3.5% year-on-year across the country, based on the latest Statistics South Africa figures to March. CPI is 5.1%.
Berry Everitt, chief executive of Chas Everitt International and chairman of the global advisory board for Leading Real Estate Companies of the World, said estate agents’ figures showed that since the formation of the GNU, there has been an eight to 10% increase in the number of enquiries from expats seeking to return to South Africa soon.
“In the past two weeks, there has been a spike in enquiries from South Africans living in the UK, alarmed at the violent protests that have been taking place there,” he said.
“However, there has been a steady increase since late last year in the number of expats returning from many other countries too, including the US, Australia, New Zealand, Holland and Germany.”
Other reasons for returning include more confidence in stronger economic growth now that there is a GNU in place. Plus the view that South Africa will have a more peaceful future, especially compared to the tensions mounting in the US, ahead of elections later this year; in Europe, as the threat of war with Russia increases; and in the Middle East, as the Israel/Palestine conflict threatens to expand, said Everitt.
Everitt said expats wanting to come home are a mix of young professionals, families and retirees.
“Demand is highest in Johannesburg and other parts of Gauteng, followed by Cape Town, Hermanus and the Whale Coast, the Winelands and parts of the Garden Route,” he said.
“South Africans who have been working abroad for multinationals are now also being asked to relocate back to ramp up local operations, possibly because they don't have to go through the still difficult process of getting permanent residence or a work permit,” said Everitt.
According to Macro Trends, about 1.75% of South Africans emigrate each year. This equates to a million people a year.
Johann Els, Old Mutual Group chief economist, said people are feeling more confident following the elections regarding the economic outlook.
“I hear a lot of those type of stories that children are coming back, families are coming back. They are sick and tired of sitting in small apartments without a garden and want to come back to the lifestyle in South Africa,” he said.
Els also noted it was critical for South Africa that skilled people return because there weren’t enough engineers, for example, to assist with fixing state-owned enterprises and municipalities.
“That’s the big issue for the South African economy. We haven’t got enough skilled people,” he said.
With the return of skilled South Africans, more people will start coming home, he said. Such a shift goes together with lower inflation, lower interest rates, better growth and more job opportunities, said Els.
“It’s a gradual path, but if we start to get all of these working together, I think that’s positive.”