Amazing Facts About South African Real Estate
When you picture Africa, wild creatures like lions and elephants automatically enter your mind. 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 among of the quickest growing economies of 2018, with Ethiopia sitting at the number 5 position – globally.
Apart from economic progress, populations across African countries have also climbed dramatically in the last few years, ushering in a huge housing and commercial space demand. 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 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 often 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’re thinking of a long-term investment, cheap housing may be too risky. Selling a single luxury villa can earn you more than several low-cost homes. For one, you need to find a local bank that will grant mortgages to low-income buyers.
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 rising.
After suffering the most catastrophic recession in more than two decades, Nigeria is establishing a reputation for its rapidly growing technology and agriculture sectors. Facebook and Google themselves have chosen Lagos as the base for their African headquarters.
The real estate industry in South Africa is already up there.
Even South Africa’s unending corruption problems have not stopped it from becoming a popular investment hub. The rand stays weak against global currencies and the cost of living is significantly low. 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.
It does get 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 purchasing land, you typically have to pay 50% down. 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.