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 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 is behind Africa’s transformation as a global property investment hotspot.
Here are some of the less expected facts about the continent’s thriving real estate industry:
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. Two key factors behind the appeal are a growing tourist industry and favorable exchange rates. Large hotel groups keep expanding their African portfolios, although tourism is not their sole attraction.
Housing is generally cheap.
Very few Africans are capable of owning upscale homes. 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 may pocket a bigger profit after selling one luxury villa than many low-cost properties. 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 unstoppable.
After suffering the most catastrophic recession in more than two decades, Nigeria is establishing a reputation for its rapidly growing technology and agriculture sectors. Even Google and Facebook have announced their plans to build their African headquarters in Lagos.
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 cost of living is low and the rand remains weak against most world currencies. Cheap housing is the norm, and tourism is growing. Global investors keep to investing in the accommodation and recreation industries.
Sometimes, it gets 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 some countries, like Mozambique, the government is the only party allowed to own land. In any case, prior to investing in Africa’s real estate industry, make sure you do you research and learn more about it.