With all the excitement around the build-up to the 2010 Soccer World Cup, speculators may be hoping to make a quick buck by renting accommodation to visiting soccer fans. However, the real spin-offs could really be seen before the tournament even begins.

With all the excitement around the build-up to the 2010 Soccer World Cup, speculators may be hoping to make a quick buck by renting accommodation to visiting soccer fans. However, says Dexter Leite, rentals director for the Pam Golding's Western Cape Metro region, the real spin-offs could really be seen before the tournament even begins.

"There may certainly be demand for rented accommodation in Cape Town around the time of any fixtures played in this city," says Leite. "But we believe the true value for the rentals market will be seen before and after the tournament. If the proposed new stadium in Greenpoint goes according to plan, construction is set to commence as early as January 2007 – and this should result in an influx of engineers, builders and other professionals into the city, all of whom will be needing a place to stay for several months, if not more than a year, while working on the project. Long-term rented accommodation, preferably based in the Greenpoint/Sea Point / City Bowl area, will be their ideal solution. The same will apply to professionals arriving in Cape Town to work on the various transport and infrastructural upgrades which will be needed to support the stadium."

Leite adds that it's not just construction teams who will descend on the city in the run-up to the tournament: "Thirty-six teams will be participating in the tournament, each of them comprising an average complement of some 50 people. These teams will need to arrive in South Africa ahead of time for training purposes, and at least some of them can be expected to choose Cape Town as their base. Again, longer-term rented accommodation may be the ideal solution."

During the tournament itself, Leite predicts that most visitors will make use of package deals aligned with hotels, B&B's and hostel-type accommodation. But he says there should also be some demand for short-term rentals of furnished apartments. However, Leite cautions speculators expecting to make quick profits off this market, saying there will be at most two games played in Cape Town, with few fans likely to use the city as their base for the tournament, due to the logistical challenges of commuting to other venues in Gauteng, North West and the like.

Mick Joyce, MD of PGP Western Cape, adds that the second major opportunity for the rentals market will more likely be after the tournament, when the region enjoys the positive spin-offs which will surely arise from having had the international spotlight so firmly on South Africa.

"The marketing exposure the country will receive from this event is almost immeasurable," says Joyce, "with our tourism industry and the property market alike set to enjoy long-term benefits. An enhanced international profile should surely translate into more visitors arriving in South Africa – and it is here that property-owners in the rental market could really benefit, as these holidaymakers will spend longer in Cape Town than the soccer fans, and will probably be seeking more luxurious accommodation."

In the meanwhile, the rentals market in the Western Cape metro region continues to show consistent strength, with high demand from tenants in the Southern Suburbs and City Bowl areas in particular. In real terms, rentals have risen at a slower pace than housing prices, and Leite says this continues to ensure tenant demand. The impact of the recent interest rate hikes has not yet been seen, but there is a possibility that the higher rates may encourage more would-be buyers to stay in the rental market for longer. Leite also believes that some over-extended homeowners may choose to offload their properties and rent accommodation instead.

Photo: This gracious home in Hout Bay is available for rental at R20 000 per month. Situated on 2100sqm of landscaped indigenous garden, the three-bedroomed home is ideal for entertaining with its two decks, braai patio and rim-flow pool. It is protected by 24-hour manned security, alarm system and electronic beams.

For more information contact 021 673 4200 or 082 880 2380, email dleite@pamgolding.co.za, or visit www.investalist.co.uk.

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