| Summary: | This article discusses the notion of Real Estate Tourism (RET). Traditional tourists tend to visit places in South Africa, such as Cape Town, and they are very often captivated by the beauty and lifestyle of the areas they visit. This prompts them to purchase ‘second homes’ at extremely reasonable prices when compared to properties in their place of origin. Considering the poor state of the local currency at prevailing exchange rates, many purchases
are absolute bargains. While there are associations between real estate tourism and tourism per se, the behaviour of the sector relates further to the real estate industry. The basis of Real Estate Tourism (RET) does not reside in the promotion of tourism in any location, but rather to the purchase of land or a home at an affordable price in what is generally an emerging real estate market which has favourable conditions such as cheaper homes and land, based on stronger foreign currency. Purchasing is thus to either buy or construct a home to live in immediately as a retiree or to live in later or even to sell it at the highest profit margin. The fast increase in travel and tourism has been a fundamental aspect of globalization, and this has invariably played an important role in
increasing real estate sales by foreigners globally. Tourists are often keen to invest in foreign destinations with important challenges and impacts resulting, not least of which is the escalation in real estate prices placing properties well out of range for local buyers.
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