Tips To Succeed In Real Estate Business In South Africa

To succeed in the real estate business in South Africa, you should ensure that you understand how the business operates. To do this, you must know everything that involves the business, including marketing strategies and the legal requirements, as we shall cover later.

The land is very vital to the lives of every South African and any other human being. Due to this, there are regulations set by the government to reduce land disputes. To register a real estate business, you must follow all government regulations. This is the first tip for having a successful real estate business, as we will show you.

Also, see the current cost of land in South Africa here.

The real estate business is open to citizens, and foreigners can establish businesses in South Africa. Following a few procedures, we will show you how easy it is to start a real estate business in South Africa as a foreigner.

We have also prepared real estate marketing tips to improve your business’ numbers. Before that, let us determine the cost of starting a real estate business in South Africa.

Also, check a breakdown of the cost of building a house in South Africa.

Cost Of Starting A Real Estate Business In South Africa

The cost of starting a real estate business is R500,000-R1.5 million on average. Starting a real estate business in South Africa varies depending on the following factors:

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Cost Of Requirements To Start A Real Estate Business In South Africa


Many costs are incurred to start a real estate business in South Africa. Below are the mandatory costs that should not miss in a real estate business budget plan:

1. Real Estate Business License cost In South Africa

The average cost of getting a real estate license in South Africa is R10,000-R15,000 annually. The cost of licensing varies from one place to another depending on the location’s cost of living. Acquiring a license to start a real estate business in the cities is more expensive than in small towns. For the license to be approved, you will be assessed to ensure you have the following:

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2. Real estate business short course cost

When starting a real estate business in South Africa, the real estate principal of an establishment must apply for higher learning. This is very helpful in understanding the real estate business better. This includes learning the new laws and old laws that have been scrapped. A certificate proving that the real estate principal has taken the 6-month short course is mandatory for a real estate agency to be registered. Enrolling in a real estate short course in South Africa costs R5,000.

3. Cost of opening a trust account for real estate in south africa

A trust account is opened in the business’s name for a real estate business to be allowed to operate. This is a precaution to prevent embezzlement of funds. The business cannot operate if the trust account is registered to an individual. The government has set these regulations to protect money made from real estate businesses.

4. EAAB registration cost

The Estate Agency Affairs Board is a regulatory board that ensures that every agency in South Africa is running legally. They also provide marketing services for registered agencies. It is y requirement to register under this board to be able to run a real estate business in South Africa. The average cost of registering a real estate business to the EAAB is R2,000-R2,500.

Tips To Market A Real Estate Business In South Africa


1. Find out the most effective means of marketing at the moment

The best way to market effectively is determined by using the most effective marketing means. There are different ways of marketing, including TV advertisements and online advertising. Have a team gather and research what marketing means is reaching the most people currently. Narrow down to the top choices and select the one that suits the real estate business structure most.

2. Hire professional marketing strategists

Everyone has ideas on marketing, but in a real estate business, facts are more important than ideas. You should employ trained marketing strategists to avoid being led astray and losing money on bad marketing. Marketing strategists will help the business become flexible with how they market by providing essential insights into the market. Hiring a marketing strategist specializing in the real estate business market is more effective.

3. Review customers to find out where they discovered your real estate business.

Through questionnaires and online reviews, you can find out which marketing means to reach the most people among your customers. You will find out that they are distributed but not equally. This will be very helpful in budgeting for marketing. The budget for marketing will be distributed depending on the means of marketing that brought in the most customers. The more customers are brought in, the more money will be pumped into marketing. The best marketing means is one that has proved to be successful. A lot of money is saved.

4. Find out the group of people that the real estate business attracts the most

Knowing the target market for your real estate business is very important. You can find this by reviewing your clients’ age range and occupation. This information helps you know how to offer services depending on the group you attract. For instance, when your target market consists of young people, you can tweak the business structure to attract more young people. This can be done by switching the marketing means to be mainly on social media, for many young people receive their information there.

5. Create an enticing business brand

You should employ a lot of creativity when creating a brand for your real estate business. Regardless of the means of marketing, a real estate business brand should be made to attract a business’ target market intentionally. For instance, if the business attracts women more than men, the design of the business brand should be structured to attract more women. This can be done by using colours and fonts women love, like pink colours.

6. Open social media accounts for your business

In our age, social media has become the best means of marketing any business, including real estate businesses. The first step is to get a social media handler to open an account on all the top platforms like Facebook, Twitter, Instagram, and TikTok. Social media will help a real estate business market itself by:

Starting A Real Estate Business As A Foreigner In South Africa


As long as a real estate business prioritizes South Africa’s interests in the business plan, a foreigner can establish this business in South Africa. There are no limits to the type of real estate business a foreigner is allowed to operate in South Africa.

Whether the business will be registered as private or public does not affect anything. A foreigner will, however, have to meet all the requirements to run each of these types of businesses. As a foreigner looking to start a real estate business in South Africa, you should follow the following tips to succeed in this venture.

Tips To Start A Real Estate Business In South Africa As A Foreigner

1. Real estate knowledge

Before anything, thorough research on the real estate business in South Africa is fundamental. Any business owner will attest that research is the most crucial factor that leads to the success of any business.

We would advise that a foreigner communicates with an experienced real estate professional. Someone who has been in the venture will have great insights that will help you understand the South African real estate market in the following ways:

2. Business visa application

A business visa allows a foreigner to legally conduct real estate business in South Africa. Therefore, this is necessary if you are a foreigner aiming to invest in the South African real estate field. This is not a problem, especially for foreigners that conducted research. Below are the steps on how

Steps To Do Real Estate Business In South Africa As A Foreigner

The initial step is to apply for a business visa. This application should be handled aiming for approval. The following are the steps a foreigner with interest in starting a real estate business should follow to have their business visa application approved.

Step 1: Construction of a business plan

A business plan is constructed using the information collected from the research on the real estate field in South Africa. The authorities will assess the business plan, and if approved, you will have qualified for the real estate business visa. For the business plan to be approved in particular, you must include the following details:

Step 2: Submission of the business visa application

After making a good business plan, you can submit this application to the South African trade department. Attached to your application should provide all the necessary documents that will help build the confidence of the assessors in you. They include:

Step 3: Assessment of your business visa application

Once the business application is successfully submitted to the trade department, they will review it keenly. The assessment will take place for not more than 4 months on average. After this period, you will be notified whether you have been approved. You will be approved if you follow all the guidelines in Step 1. The business visa will be provided upon approval. This means you are eligible as a foreigner to start a real estate business in South Africa.

To complete the registration of your venture, you will submit the visa to the Department of Home Affairs. They must know when a foreigner ventures into the South African economy to keep a record. This department approving your company’s registration is the last step to starting a real estate business as a foreigner in South Africa.

FAQs About Real Estate Business In South Africa

Do real estate agents make a lot of money in South Africa?

Yes, but depending on the following factors:
1. The agency: The more popular a real estate agent is, the more agents will receive the more money. Popular agencies have more customers than their customers due to the availability of money to promote the business.
2. Agent level of expertise: Being a real estate agent is about how well you can convince someone to buy property. Agents are paid in commission, so the one who sells the most property makes the most money.
3. Location: Property away from primary means of transport and cities do not bring in money quickly because these areas have low demand.

How many years does it stake to take a course on real estate?

3 years. The course is offered at Pretoria University, and you have to meet the requirements to do it. After qualifying, you have to pay a fee of R300-R500 per semester. The fee varies depending on the university offering the course. After getting this degree, the law still requires a higher business certificate to be allowed to start a real estate business in South Africa. This is a 6-month short course.

How much does starting a real estate agency in South Africa cost?

R500,000-R1.5 million on average. The cost of starting a real estate agency varies depending on the business mode of operation. Some real estate businesses prefer to spend carefully and grow steadily, while others take a risk to pump a lot of money into the venture for rapid success.

What is the demand for real estate agents in South Africa?

The demand for real estate agents is high depending on several factors. For instance, season change. There are times of the year when the country’s money flow is steady, and many South Africans are willing to buy or sell the property. During difficult economic times, there is no money. Many people want to sell their property, but there are no buyers.

How To Start A Real Estate Business In South Africa