Real Estate Investor Magazine South Africa May 2014 | Page 61

OFFSHORE
a great deal of opportunities.. Mozambique is one of the
countries in the world with the highest economic growth
and forecasters predict it will remain steady in forthcoming
years. Natural resource explorations, sufficient market
space for international and national companies, and
an investment-friendly environment with investment
incentives and sound returns are just a few of the reasons
why investing in Mozambique makes sense.
The country is already seeing real estate developments
taking place at a fast pace, pretty much everywhere. These
are naturally and in the main mostly located in the country’s
capital, Maputo with residential, commercial and industrial
real estate developments taking place in key hubs and
growth nodes. While are a few major projects underway in
Maputo, one also finds that even larger projects are taking
place in other cities such as Pemba and Palma (directly
related to the LNG operations), Beira (due to its port and
commercial tradition), Nacala and Nampula (due to the
ports and new infrastructure for coal explorations and
shipping), and Quelimane, among others.
Mozambique is stable from both an economic and
political point of view. There has been some news about
unrest between Frelimo (ruling party) and Renamo
(opposition party), but so far this has not affected the
economy and it is commonly believed that it won´t be long
before the two parties come to an agreement.
It is believed that the country is set to continue its steady
economic growth and that it will remain politically stable.
Both private and public investment will allow Mozambique
to continue evolving, becoming closer to other developed
countries in the region and, due to its privileged
geographical position, to become one of the economic hubs
of sub-Saharan Africa. It is evident that more and more
people are considering acquiring their own homes. With
an anticipated reduction in interest rates, we will be facing
a change in the market, where not only investors or wealthy
individuals can buy property, but a wider range of people.
As mentioned, provinces where the energy sector is
more active tend to have more potential from a housing
accommodation perspective. In Maputo, with the
construction of important infrastructure, some new
development areas have been created, which facilitates
the entry of new developers and new products. Due to the
current lack of quality properties and excessive demand,
www.reimag.co.za

View of a brand new house in a secure, closed complex
the rental market is still very costly and challenging, so
new development projects and product offerings will create
attractive opportunities for buy to let investors to cater for
the high demand.
Property prices in general have been appreciating over the
past five years. During the past year, this increase has almost
stabilised, although in the rental market, prices of residential
properties in prime areas and in new development areas tend
to continue to appreciate. Due to the lack of office space in
town, rental rates have been increasing significantly. In
terms of property for sale, housing prices can vary from
USD 1000 per square metre to 4000 per square metre. On
average, a three-bedroom apartment in prime areas fetches
a rental between USD 3000 for an older unit to USD 7000
a month for a newer apartment.
MOZAMBIQUE FACTOIDS
Government: Presidential system, Republic
Capital: Maputo
President: Armando Guebuza
Currency: Mozambican metical
Population: 25.2 million (2012) World Bank
Official language: Portuguese Language
Interest rate: 8.25%
Mozambique is being seen as one of the best
countries in Africa to invest in, mainly in regard to
real estate, offering investors sound returns from 5% to
14%. The market offers very interesting returns and it
is expected that growth will continue, particularly due
to the new discoveries of natural resources, which are
bringing numerous people into the country as well as a
host of new activities.

REALE ESTATE BUSINESS DIRECTORY

RESOURCES
Pam Golding Properties Mozambique
May 2014 SA Real Estate Investor

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