Amazing Facts About South African Real Estate
When thinking of Africa, you automatically imagine lions, elephants, zebras and other wildlife. 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.
On top of economic progress, African countries’ populations also increased drastically over the last few years, bringing in a large demand for housing and commercial space. This is behind Africa’s transformation as a global property investment hotspot.
Here are some of the more surprising facts concerning the continent’s bustling real estate market:
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 the continent’s roaring tourism 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 often 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. Selling a single luxury villa can earn you more than several low-cost homes. For starters, you have to find a local mortgage provider for low-income households.
Even if a simple urban unit cost as low as $10-20,000, it would be pipe dream for most local folks. Yet this type of dwelling is desperately needed everywhere in Africa. However, if you’re a developer who wants to do business while uplifting the lives of others, this is a good way to go.
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