Amazing Facts About South Africa’s Real Estate Market
When thinking of Africa, you automatically imagine lions, elephants, zebras and other wildlife. But truth is, these days, the continent is quickly developing and it is improbable that you will find any wild creatures in the streets. African countries are even some of 2018’s most successful economies, with Ethiopia at the number 5 spot worldwide.
Aside from economic expansion, African countries also have some of the highest high population growths, leading to a huge demand for housing and retail space. This is behind Africa’s transformation as a global property investment hotspot.
Here are some of the more surprising facts concerning the continent’s bustling real estate market:
Developers are usually non-African.
Foreign investment is making a tremendous impact on Africa’s real estate industry, most investors being Middle Easterners, Asians, and Russians. Part of the appeal are the continent’s roaring tourism industry and favorable exchange rates. Big hotel groups are always expanding their African portfolios, though other attractions outside tourism are also in the mix.
Housing is generally cheap.
Very few Africans are capable of owning upscale homes. This is why foreigners are the more common owners of luxury properties in the continent. If you intend to make a long-term investment, you might find affordable housing risky. You may pocket a bigger profit after selling one luxury villa than many low-cost properties. For starters, you have to find a local mortgage provider for low-income households.
Even if prices went down to $10-20,000 for a simple modern unit, most Africans will still find unattainable. Yet this type of dwelling is desperately needed everywhere in Africa. However, if you want to uplift others’ lives as part of your mission as a developer, then there is great reward in going this direction.
Nigeria is unstoppable.
After suffering the most catastrophic recession in more than two decades, Nigeria is establishing a reputation for its rapidly growing technology and agriculture sectors. Even Google and Facebook have announced their plans to build their African headquarters in Lagos.
The real estate industry in South Africa is already up there.
South Africa may be dealing with ongoing corruption issues, but that hasn’t stopped it from being a famous investment hub. The rand stays weak against global currencies and the cost of living is significantly low. Cheap housing is accessible all throughout, and its tourism sector is the best it has ever been. International investors are constantly putting money into the areas of recreation and accommodation.
It does get complicated.
With its colorful array of cultures and nationalities, Africa is exactly what you would call a complicated continent, where Property laws are as diverse as the population. A 50% deposit is often required when you buy land. In some countries, like Mozambique, the government is the only party allowed to own land. In any case, before investing in African real estate, it is best to learn more about it through research.
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