Case Study: My Experience With Tips

Case Study: My Experience With Tips

Amazing Facts About South African Real Estate

When thinking of Africa, you automatically imagine lions, elephants, zebras and other wildlife. Actually, the continent is fast evolving and there is hardly a chance you will find wild animals wandering in the streets these days. African countries are even some of the fastest growing economies in 2018, with Ethiopia being the top 5 globally.

Aside from economic expansion, African countries also have some of the highest high population growths, leading to a huge demand for housing and retail space. This is the reason Africa is now one of the hottest places when it comes to property investment.

Here are some of the lesser known facts about Africa’s booming real estate industry:

Developers are not always 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. Large hotel groups keep expanding their African portfolios, although tourism is not their sole attraction.

Housing is generally cheap.

High-end homes are affordable to only a few Africans. 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. You may pocket a bigger profit after selling one luxury villa than many low-cost properties. You have look for local mortgage providers for low-income households for one.

Even if prices went down to $10-20,000 for a simple modern unit, most Africans will still find unattainable. 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.

Nigeria is rising.

Nigeria has emerged from the world’s most devastating recession in more than 20 years, and it is now drawing international interest for its two rapidly expanding sectors: technology and agriculture. Even Google and Facebook have announced their plans to build their African headquarters in Lagos.

South African real estate is on top.

South Africa may be dealing with ongoing corruption issues, but that hasn’t stopped it from being a famous investment hub. The cost of living is low and the rand remains weak against most world currencies. Low-cost housing is available all over, and the tourism sector is at its best. Investors worldwide keep pumping investment into the recreation and accommodation sectors.

Sometimes, things turn complicated.

Africa is hardly a simple, almost overflowing with nationalities and cultures. A 50% deposit is often required when you buy land. In some countries, like Mozambique, the government is the only party allowed to own land. In any case, prior to investing in Africa’s real estate industry, make sure you do you research and learn more about it.

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