have a larger working-age population than China.
The growing work force will result in more money
being spent and more opportunity for growth in
infrastructure, transport and housing.
Botswana stood at 17.9% in 2012 from 20.9% in 2011.
For residential properties, total returns soared to 24.4%
in 2012. The income return for residential properties
was 8.8%, while the capital return was 14.4%.
Tourism boom
Tourism however is fast becoming the country’s
economic focus as the government acknowledges the
tremendous potential of this ever-growing sector. The
government has recently revamped its tourism law in an
effort to formalise systems and validate those within the
industry. The Botswana Tourism Organisation (BTO).
The new tourism body now acts as a separate institution
and continues to market the country’s tourism product,
grade and classify travel accommodation facilities and
promote investment in the travel and tourism industry
in Botswana.
Based on figures from the Bank of Botswana, in
January 2014, total outstanding property loans to
households increased by a massive 44% on the same
period the previous year, largely due to the falling bond
interest rates. This indicates that demand for property
in Botswana continues to surge forward.
Property market
As more investment pours into Botswana’s economy,
more consumers within the country will be able to
purchase property, which will create a greater need
for professional, reputable estate agents who are able
to accommodate the growing numbers of property
transactions. Major real estate brands such as
RE/MAX of Southern Africa have already established
a presence in Botswana with the RE/MAX Property
Specialists office situated in Gaborone.
The residential property market in the country
remains strong with the healthy economic growth,
along with the country’s political stability. While
the lack of official house price statistics in Botswana
makes it difficult to fully assess the market, real
estate experts advise that property prices in the
country have shown growth over the recent years.
According to local property professionals, demand
for property is expected to continue rising during the
remainder of 2014.
According to the IPD Botswana Annual Property
Consultative Index, the total return for all properties in
www.reimag.co.za
Generally in Botswana there is a lot of property
construction going on. This includes a high standard up
and coming CBD as well as various new innovative office
parks in the business districts, warehousing solutions and
hotels. Multi-residential properties have become very
popular due to the rising cost of land as a result of scarcity
of freehold land within the greater area of the capital city,
Gaborone. Secure residential estates are in demand in both
the rental and sales markets while demand for quality and
upmarket accommodation is also on the increase.
Botswana’s property market currently favours buyers
as there is more property available on the market
offering a range of choice to buyers across the board
in all property types. The most popular price range
for residential property is between P1.2 million to
P2.5 million at present. Currently there is more
movement in the residential property sector, although
additional commercial properties have come onto
the market and recently, more and more tourism/
resort type properties in the north of Botswana are
also coming onto the market. Buyers are made up of
a mix of individual property owners in the middle to
high income brackets as well as investors with multiple
properties. Buyers want affordability and a good return
on investment. While the overall pricing in rentals and
sales is dropping, certain areas and property types are
still holding their values very well.
RESOURCES
RE/MAX Property Specialists
Offshore Handbook 2014
27