Amazing Facts About South Africa’s Real Estate Market
When thinking of Africa, you automatically imagine lions, elephants, zebras and other wildlife. Actually, the continent is fast evolving and there is hardly a chance you will find wild animals wandering in the streets these days. African countries are even some of 2018’s most successful economies, with Ethiopia at the number 5 spot worldwide.
On top of economic progress, African countries’ populations also increased drastically over the last few years, bringing in a large demand for housing and commercial space. This is behind Africa’s transformation as a global property investment hotspot.
Here are some of the lesser known facts about Africa’s booming real estate industry:
Developers are not always Africans.
Foreign investment is dominating the real estate market in Africa, where investors are usually either Asians, Russians or Middle Easterners. Two key factors behind the appeal are a growing tourist 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 affordable.
High-end homes are affordable to only a few Africans. This is why luxury properties in the continent are mostly owned by foreigners. If you’re aiming for a long-term investment, affordable housing is probably risky business. You will likely profit more from selling a single luxury villa than many low-cost homes. You have look for local mortgage providers for low-income households for one.
Even if a simple urban unit cost as low as $10-20,000, it would be pipe dream for most local folks. Yet all throughout Africa, there remains a tremendous need for such type of dwelling. 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.
Nigeria has emerged from the world’s most devastating recession in more than 20 years, and it is now drawing international interest for its two rapidly expanding sectors: technology and agriculture. Facebook and Google themselves have chosen Lagos as the base for their African headquarters.
South African real estate is on top.
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 the norm, and tourism is growing. International investors are constantly putting money into the areas of recreation and accommodation.
Sometimes, things turn 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 certain countries, such as Mozambique, only the government can own land. In any case, spend time doing some research so you can learn more before investing in African real estate.