The huge potential of the Botswana real estate market
Despite the fact that it is not a very simple reality in many ways, as it is extremely underdeveloped, it seems that this backwardness is not present in the real estate sector of Botswana. According to the main economists, who have ventured into the quantitative and quantitative analysis of the nation, even without official rankings, this land is really on the springboard to reach rather ambitious goals.
The lack of a fairly wide and varied offer of housing has caused rental yields that have reached 9.5%. Only last month, these numbers were three percentage points lower, which shows how, in such a short time, a country can really make a difference!
The research, carried out by the CAHF, which stands for Center for Affordable Housing Finance in Africa, has shown that the properties subject to lease contacts in the main cities, offer and will probably continue to offer, very high gross yields by average standards. About 7.9%! The object of this increase will also be residential buildings, located outside the metropolis center (increase of 5%).
But how much does it currently cost to buy a new property? For a 60 square meter building, the price starts at 370,000 BWP, corresponding to 36,000 US dollars.
Otherwise, to sign a lease, the average rent for a residential property is $ 300 a month.
In all this, it is possible to understand how Botswana is considered one of the most attractive destinations for tourists, given that it has brought about 70% of total real estate investments across the continent.
Furthermore, we must point out that we are facing an extremely free nation in terms of economic policies. The regulatory environment and lean bureaucracy allow a strong opening to the world market and to foreign investments.
Let's look at some timing in this regard.
According to the findings of the World Bank, it takes about 12 days to register a property in Botswana, compared to an average of 57 days for sub-Saharan Africa.
The process amounts to approximately 5.1% of the value of the property. To increase the level of security of the possession and above all to be able to improve transparency on land ownership and real estate, the Ministry of Land and Housing is activating a national land registration apparatus.
And what will be the future forecasts? Both the demand and the land values in Botswana are expected to persist moderately throughout 2019, with the support given by improved economic conditions, according to local experts.
We also remember that income taxes are moderate in Botswana.
Here is a brief summary:
Rental income: taxed at progressive rates, from 5% to 25%.
Capital gains: taxed at progressive rates, from 5% to 25%.
Inheritance: withdrawn at progressive rates, from 5% to 25%.
Residents: residents are taxed on their income at progressive rates, from 5% to 25%.
What to say, we hope that Botswana can continue at this rate!
The lack of a fairly wide and varied offer of housing has caused rental yields that have reached 9.5%. Only last month, these numbers were three percentage points lower, which shows how, in such a short time, a country can really make a difference!
The research, carried out by the CAHF, which stands for Center for Affordable Housing Finance in Africa, has shown that the properties subject to lease contacts in the main cities, offer and will probably continue to offer, very high gross yields by average standards. About 7.9%! The object of this increase will also be residential buildings, located outside the metropolis center (increase of 5%).
But how much does it currently cost to buy a new property? For a 60 square meter building, the price starts at 370,000 BWP, corresponding to 36,000 US dollars.
Otherwise, to sign a lease, the average rent for a residential property is $ 300 a month.
In all this, it is possible to understand how Botswana is considered one of the most attractive destinations for tourists, given that it has brought about 70% of total real estate investments across the continent.
Furthermore, we must point out that we are facing an extremely free nation in terms of economic policies. The regulatory environment and lean bureaucracy allow a strong opening to the world market and to foreign investments.
Let's look at some timing in this regard.
According to the findings of the World Bank, it takes about 12 days to register a property in Botswana, compared to an average of 57 days for sub-Saharan Africa.
The process amounts to approximately 5.1% of the value of the property. To increase the level of security of the possession and above all to be able to improve transparency on land ownership and real estate, the Ministry of Land and Housing is activating a national land registration apparatus.
And what will be the future forecasts? Both the demand and the land values in Botswana are expected to persist moderately throughout 2019, with the support given by improved economic conditions, according to local experts.
We also remember that income taxes are moderate in Botswana.
Here is a brief summary:
Rental income: taxed at progressive rates, from 5% to 25%.
Capital gains: taxed at progressive rates, from 5% to 25%.
Inheritance: withdrawn at progressive rates, from 5% to 25%.
Residents: residents are taxed on their income at progressive rates, from 5% to 25%.
What to say, we hope that Botswana can continue at this rate!
