Amazing Facts About South African Real Estate
When you imagine Africa, pictures of lions, zebras and other wild animals immediately come to 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 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 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 is making a tremendous impact on Africa’s real estate industry, most investors being Middle Easterners, Asians, and Russians. Part of the appeal are a flourishing 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 generally cheap.
Only a handful of Africans can afford upmarket homes. This is the reason foreigners usually own luxury properties in the continent. 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 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.
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.
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. 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 some countries, like Mozambique, the government is the only party allowed to own land. In any case, spend time doing some research so you can learn more before investing in African real estate.