Offshore Guidebook | Real Estate Investor Magazine Offshore Guidebook 2014 | Page 24

MOZAMBIQUE BY ADRIAN FREY Commodities lead Boom Huge investment opportunities O ver the last decade Mozambique´s economy has more than doubled as the country has sustained one of the highest GDP growth rates in the world, averaging at 7.5% between 2003 and 2013. The commodities-led economic boom, mainly from extensive coal and natural gas discoveries, has created huge investment opportunities in the still underdeveloped real estate market. class. This has stimulated a surge in high end-real estate developments; over the next five years, around 4 500 mid- and high-end housing units are expected to enter the market in Maputo´s prime areas. While some are expecting an over-supply of middle-upper quality housing in these neighbourhoods, REC anticipates demand to remain several fold greater at 23 000 units in the next five years. Real estate Mozambique´s capital city and financial centre, Maputo, has been a focal point for the country´s growth, stimulating employment and commercial expansion. The capital´s demand for office space over the next five years is estimated to grow by 160 000sqm according to Real Estate Consulting (REC), far greater than the incoming supply of 65 000sqm. Overlooked market Much less developed is the affordable housing sector, which “is still greatly overlooked in the market”, said ThirdWay Africa Partner Gonçalo Neves-Correia at the conclusion of last month´s annual Pam Golding Properties Real Estate Conference. The country´s growth has also spurred rapid development in provincial capitals such as Tete, Pemba and Nacala, which are closer to resource mega-projects in Mozambique´s centra l and northern areas. In Nacala, demand for office space is expected to exceed supply by 20 000sqm, and in Pemba this figure is even higher at 30 000sqm. Maputo´s rising fortunes has also seen a large inf lux of wealthy expatriates and a rising middle 22 Offshore Handbook 2014 Casa Jovem is