Amazing Facts About South African Real Estate
When you imagine Africa, pictures of lions, zebras and other wild animals immediately come to mind. In reality, the continent is developing rapidly and you will likely not find these wild animals parading the streets any longer. African countries are even some of the fastest growing economies in 2018, with Ethiopia being the top 5 globally.
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 puts Africa up there as one of the most popular hotspots for property investment.
Here are some of the more surprising facts concerning the continent’s bustling real estate market:
Developers are not always Africans.
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 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 intend to make a long-term investment, you might find affordable housing risky. 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 with a price as low $10,000 for a basic urban unit, most Africans will probably still find it expensive. But there remains a desperate need for this type of home all over Africa. However, if you’re a developer who wants to do business while uplifting the lives of others, this is a good way to go.
Nigeria is booming.
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. Even Google and Facebook have announced their plans to build their African headquarters in Lagos.
South Africa’s real estate industry is up there.
Even with South Africa’s seemingly endless corruption problems, it remains a an attractive investment hub. Cost of living is highly affordable, while the rand stays weak against most foreign currencies. Low-cost housing is available all over, and the tourism sector is at its best. Investors worldwide keep pumping investment into the recreation and accommodation sectors.
Sometimes, things turn complicated.
Africa is far from a simple continent, what with its entire range of cultures and nationalities, where you will find property laws just as diverse as its people. When buying land, you usually have to pay a 50% deposit. 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.