Get set for success: KZN and Gauteng real estate franchises for sale
Category General News
So, you're eyeing up the chance to start your own real estate franchise? Perfect timing! KwaZulu-Natal and Gauteng (particularly Pretoria) are brimming with potential. Whether you're a seasoned entrepreneur or a newcomer eager to dive into the property scene, these locales offer the kind of opportunities that dreams are built on. Century 21 South Africa is currently looking for franchisees interested in expanding the brand in these areas. Eva August, our National Operations Manager and Head of Business Development, shares her insight to help you get the ball rolling.
Strategic locations, stellar returns
"Real estate is one of the most inelastic demand industries to work in and create wealth in," says August. "No matter how the economy performs or personal preferences change, people will always require a place to live. A business owner with solid experience and financial resources will have the foundation to take advantage of the current market."
August says parts of KwaZulu-Natal and Pretoria are 'hot locations' to set up shop at present. "We use a lot of big data to guide our business decisions," she points out. "Currently, and for the foreseeable future, KwaZulu-Natal has the highest demand for real estate sales, or rather, buyer demand, compared to other provinces. Our economies of scale allow us at Century 21 South Africa to support and leverage our resources and support for a real estate professional to succeed in the province."
Coastal retreats to vibrant cities
KwaZulu-Natal is seeing a great demand for property at the moment. The area's coastal regions, for example, on both the south and north coast, offer access to golden beaches, scenic beauty, top-tier schools, family-friendly amenities, and a range of property options. The holiday destination vibe has also made them attractive for semigrants and investors.
Inland, Pretoria's market is also booming. The city was recently recognised as being the most affordable city for homeownership worldwide compared to the average salary. Its value-for-money properties are sought-after by first-time homeowners and are often seen as a more affordable alternative to Johannesburg. Yet, Jacaranda City (as it is fondly called) still remains close to Gauteng's hub making it popular for commuters. In its own right, the city has an appealing lifestyle and leisure attractions and a slower pace of living compared to other big cities.
Century 21 South Africa already boasts success stories within these areas in Century 21 Bluff and Century 21 Montana/Moot. "These franchises have made the most of the brand's support, exposure, national and global referrals, technology, recruiting, and training," says August. "The results have been fantastic - more market share, quality recruitment of top talent, and greater marketing reach. Through their efforts, they've also contributed to our outstanding culture and ethos, ensuring clients are served with a level of professionalism the brand is known for."
Checklist for future franchisees
According to August, Century 21 South Africa is one of the easiest brands to open a franchise with in the country. Prospective candidates will need the following:
- A proven track record in business ownership and leadership.
- A qualification equivalent to NQF5.
- Financial resources for the first 12 months according to Century 21 South Africa's cash flow model.
"These requirements are the minimum," says August. "In the context of an industry where property transactions take months to conclude and register, and where earnings are commission-based, a level of expertise is needed. Cashflow reserves are also required to manage the trade of a service that has a long pay cycle. However, once a firm is operational, the financial potential is extraordinary in the right hands."
While the rewards are real, August cautions potential franchisees, especially first-time business owners, to do their research. She highlights seven factors to consider before buying or investing in a franchise:
1. Audit yourself: Evaluate your own strengths, weaknesses, interest in this business model, and long-term vision. Consider if leadership is something you're passionate about and if you're prepared for the demands of this industry.
2. Consider the territory: Research the market you wish to enter. Look at its growth factors, competition, the potential for repeat business with your business model, and the potential for a variety of services for different income streams.
3. Weigh up startup costs and earning potential: Understand that real estate, while lucrative, is commission-based and sensitive to costs and risk factors. Success is dependent on the performance of your team and leadership. It's essential to consider the business's startup costs and its profit and loss projections with a fine-tooth comb.
4. Appraise the brand's reputation: Take a hard look at the brand you want to partner with and consider its time in business, strengths, weaknesses, and how it can guarantee success in the partnership.
5. Assess the company's future plans: Look into the franchisor's plans for growth, longevity, and overall vision for the next three to five years. Ask for data from the company to make an informed decision.
6. Speak with current franchisees: Talk to existing franchisees, attend their meetings if possible, and consider working for the franchising group before owning one to get a firsthand understanding of the business culture and dynamics.
7. Size up the business: Get to know the franchisor's business model, systems, and resources available to you. This includes training and development, mentorship, marketing, financial support, administration, and regulatory support in the market you're operating in.
Century 21 South Africa welcomes interested franchisees to reach out and claim a territory across the country. To get started, fill out our enquiry form and a representative will contact you ASAP.
Author: Century 21 South Africa
