Real Estate News, Reviews and Investment
Article: The relocation of DTC from London to Botswana has influenced the local property markets.
The climactic conditions and the political stability of Botswana make it a good place to look at real-estate investment. The world economic forum regards the country as one of the best for governance on the continent. It also has a high credit rating and offers favorable exchange rates. Its wildlife sanctuaries and national parks help to attract many tourists, with other activities encouraging economic growth, such as coal and diamond mining and cattle rearing.
The commercial real estate market in Botswana
The shifting of the Diamond Trading Company (DTC) offices from London to Gaborone has resulted in an increase in the speculative developments in the new Central Business District as well as other business parks.
Commercial properties coming on the market include the expected completions of:
Experts believe that the office real-estate sector will be in a state of oversupply for the next 2 or 3 years and rental growth will restrict to adjust for this oversupply.
Residential and hotel investment in Botswana
The hotel and tourism industry is trying to cope with the increasing demand because of the DTC shift. DTC has 75 sight holders who will each visit Botswana 10 times a year and expect 5-star hospitality as well as other entertainment of the highest quality
The outlook for Botswana
The IPD Botswana Property Performance Report for the year to December 2011 showed a total return of 20.9% on directly held investments in property based on open market valuations.
The bottom line for investment in Botswana
According to Knight Frank’s newly released Africa Report 2013, demand for high-quality commercial and residential property is continuing to grow across Africa on the back of strong economic growth and rising income.
Botswana is particularly suitable for investment in residential and retail property because of its economic fundamentals and its political stability.