Russians paint Cape red

15 August 2014 - 02:36 By Philani Nombembe
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FIT FOR A TSAR: An unidentified Russian businessman paid R23-million for Lichtenstein Castle in Hout Bay - built in 1998 as a replica of Schloss Lichtenstein in Germany
FIT FOR A TSAR: An unidentified Russian businessman paid R23-million for Lichtenstein Castle in Hout Bay - built in 1998 as a replica of Schloss Lichtenstein in Germany
Image: ESA ALEXANDER

Wealthy Russians are snapping up top-end properties on Cape Town's luxurious Atlantic seaboard.

Estate agents say there has been an increase over the past few years in the number of Russians splashing out on homes costing about R20-million.

One of the most expensive purchases is that of the landmark Lichtenstein Castle, in Hout Bay, which was sold to a Russian entrepreneur in August 2012 for R23-million.

Last year, another Russian offered R250-million for a Camps Bay property but the deal fell through - the owner wanted R300-million.

Lanice Steward, the Cape Town managing director of the international property agency Knight Frank, said this week that Russians were showing more interest in Cape Town homes, attracted by the city's "wonderful lifestyle, beaches, variety of activities and excellent restaurants".

She attributed the increased interest in Cape Town to the international exposure the city received during the 2010 soccer World Cup.

"They tend to be looking at the top end of the market."

Research published by Knight Frank in Dubai revealed that, for $1-million, home buyers can buy 15m2in Monaco, 43m2in Moscow, 52m2in Beijing and 215m2in Cape Town.

Laurie Wener, managing director of Pam Golding Properties in the Cape Town metropole, echoed Steward's sentiments.

"There has been a slight increase in interest from Russian home buyers. Like most international buyers, they are shrewd and assess the market accurately and prudently, and slot into the supply and demand chain.

"As is also the case with most overseas property buyers, they consider purchases across the board, but Clifton, on the sought-after Atlantic seaboard, is always a hot favourite," she said.

Last year Lew Geffen, chairman of Lew Geffen Sotheby's International Realty, said Russians were eying top-tier properties in areas such as Clifton, Camps Bay and Llandudno.

Geffen attributed the upswing to the devaluation of the rand.

Cape Town immigration expert Andreas Krensel said his company, IBN Business and Immigration Solutions, had noted an increase in the number of Russians wanting to set up businesses in the city.

"Most inquiries we get are from financially independent or retired people," said Krensel. "We had one investor who set up a tourism company aimed solely at the Russian market."

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