New firm launched to advise South Africans on buying property in UK

The real estate investment and advisory firm JLL Sub-Saharan Africa has recently launched a new service line, EMEA Residential, dedicated to advising South African investors on purchasing high-quality residential properties in the UK. Joining CNBC Africa, Adam Challis, Head of UK Residential Research for JLL, discussed the impact of international investment, infrastructure developments like the Elizabeth line, Brexit uncertainty, and opportunities for South African investors in the London property market. Challis emphasized the importance of international investment in underwriting new supply in London's property market. With a growing population and a need for around 50,000 new homes annually to meet demand, foreign capital plays a crucial role in driving development activities. Challis pointed out that London faces a challenge in building enough homes to keep pace with demand, making it essential to encourage the right type of new build environments. Discussing the impact of infrastructure developments such as the Elizabeth line, Challis highlighted how such projects drive real estate values and open up new development sites. The Elizabeth line is expected to connect eastern London locations with central London, including key job hubs like the West End and the city, as well as Heathrow Airport. This connectivity is vital for supporting mixed communities and attracting investment to emerging areas. When questioned about the impact of Brexit on property values, Challis acknowledged the uncertainty the decision has created. While Brexit has generated nervousness around job stability and some have deferred property purchases, Challis suggested that the effect on the residential market may have been overstated. He noted that values in the top end of the market had already begun to moderate due to changes in transaction taxes before the Brexit vote. Regarding South African investors looking to buy property in London, Challis expressed optimism, citing the historical affinity many international investors have for the UK capital. Despite concerns stemming from Brexit, Challis emphasized that property investment should be viewed as a long-term decision, urging investors to consider London's enduring appeal beyond short-term uncertainties. He highlighted London's global status and its attractiveness for high net worth individuals interested in the buy-to-let market. In terms of property prices, Challis noted that entry-level prices for one-bed flats in London typically start from around £350,000 to £400,000, rising to over a million pounds for premium properties. While high-density towers are becoming more prevalent in London, offering panoramic views of the city, Challis also pointed out opportunities in areas seeing infrastructure investment, such as the new Northern Line extension to Nine Elms. Overall, Challis painted a positive picture of the London property market, emphasizing ongoing opportunities for investors despite the uncertainty surrounding Brexit. With a focus on long-term growth and the city's enduring appeal, South African investors and others looking to enter the UK market have a range of options to explore, from premium properties in central London to emerging areas benefitting from infrastructure developments.