When it comes to choosing to invest in the property market in the Western Cape, one of the major concerns for buyers is how the drought will impact their investment. While making headlines for its ongoing water crisis, Cape Town is not the only area affected by the drought. Around 400 kilometres northeast from Cape Town, lays the semi desert region of the Karoo – a place where residents are just as concerned as they experience water shortages and where farmers live in constant fear of losing their livestock and crops.

There's nothing like a water crisis to tease agricultural land investors with concerns of how they can make it work. Jacques de Beer from Pam Golding Properties, has the answer: “There isn’t much agricultural land available in the fertile valleys, mainly because the water rights are attached to the larger farms – mostly port producers – and most of them aren’t selling. But you can still find smaller pieces of land that are serviced by municipal water, which makes them suitable as lifestyle properties.”

While it’s a seller’s market in wine farms, things appear more open in the residential properties for sale side– and potential investors shouldn’t limit their options to just one town. According to Masood Husain from Pam Golding Properties, the market for residential land is better than the market for agricultural land in Calitzdorp, while in Ladismith the market for agricultural land is better than the market for residential property. Masood believes that Ladismith holds the better investment potential since you can purchase home and land here at attractive prices. He says the land is perfect for wine production and growing soft fruit, from which you can harvest decent returns.

As with any investment, there are a confluence of factors that affects the value of farmland. Therefore, it’s important to weigh the risks and rewards before ploughing your money into farmland. This includes considering what type of land to purchase and in which location.