Amazing Facts About South African Real Estate
When thinking of Africa, you automatically imagine lions, elephants, zebras and other wildlife. 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 2018’s most successful economies, with Ethiopia at the number 5 spot worldwide.
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 is the reason Africa is now one of the hottest places when it comes to property investment.
Here are some of the lesser known facts about Africa’s booming real estate industry:
Most developers are not Africans.
Foreign investment – mainly from Asia, Russian and the Middle East – is creating an enormous impact on African real estate. Part of the appeal are the continent’s roaring tourism industry and favorable exchange rates. Large hotel groups keep expanding their African portfolios, although tourism is not their sole attraction.
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. Selling a single luxury villa can earn you more than several low-cost homes. You have look for local mortgage providers for low-income households for one.
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’re a developer who wants to do business while uplifting the lives of others, this is a good way to go.
Nigeria is rising.
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 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.
Sometimes, it gets 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. When buying land, you usually have to pay a 50% deposit. In Mozambique and some other countries, private citizens cannot own land; only the government can. In any case, before investing in African real estate, it is best to learn more about it through research.