While the South African economy continues to lag, our neighbouring SADC countries continue to outpace the country in terms of economic growth. According to the World Bank, International Monetary Fund (IMF), and United Nations neighbouring countries such as Botswana, Mozambique, Zambia and Tanzania have experienced good growth of between 3.5% and 6% per annum. Additionally, Angola has grown by 3% to 4%, and Malawi at around 4% annually.
According to the World Bank, the economies of Sub-Saharan Africa are very diverse, comprising a mix of low, lower-middle, upper-middle, and high-income countries. Rich natural resources and a mix of economic upliftment is breathing life into many economies.
Following the Covid-period, many countries had to recover, and many are still on the road to recovering back to the higher growth rates experienced in the pre-2020 period. Some countries such as Chad, Zambia, and Ghana, have had to initiate debt restructuring as part of their attempts at building more economical sustainability.
The property markets across SADC also continue its upward recovery after the Covid-induced slump. Investing in property within the Southern African Development Community (SADC) region offers several attractive opportunities.
The region boasts a diverse range of economies, with some experiencing rapid growth while others are undergoing significant development. This growth has led to increased demand for housing, commercial spaces, and infrastructure, making it a lucrative market for property investors.
Economic growth means more demand in the commercial sector, whether it is for offices or retail space, or for manufacturing and warehousing. Many SADC countries also now offer new property developments, adding more opportunities for people to invest in their own homes.
The SADC region benefits from its abundant natural resources, favourable geographical location, and a growing tourism industry across many areas. These factors contribute to a positive economic outlook and make these desirable destinations for local and international investors.
It is, however, important to conduct thorough research and due diligence before investing in any specific country within the SADC region. Specifically, as market conditions and regulatory frameworks vary significantly depending on the country.
The Seeff Property Group now has branches in just about all of the neighbouring SADC countries including Namibia/Swakopmund, Botswana, eSwatini, Zimbabwe, Zambia/Lusaka, Malawi, Mozambique, DRC and Mauritius, as well as in Dubai.
The commercial and residential markets in the various countries differ, and each offer unique perspectives and nuances, and Seeff offers specialists in these countries who understand these, and are best placed to provide the right advice and market access.
While a lot of activity in the respective property markets are driven by local demand, and investment into commercial property, many of these countries also offer opportunities to invest in leisure property. Dubai, and the Island of Mauritius are two examples of countries which have become offshore property hotspots offering a range of opportunities to international investors.
The Dubai economy grew by some 3.7% in the first quarter of this year, which is up from 3.3% GDP growth for the 2023-year. The good economic growth is also driving excellent growth in the property market with high demand for rentals, as well as significant opportunities to invest in new, off-plan developments with attractive payment plans.
GDP growth in Mauritius has remained robust, clocking up some 7% for the 2023-year, with a projected growth of 4.9% for the 2024-year. The close proximity to South Africa, and wonderful climate, developed infrastructure and choice of developments, makes the island a popular choice for second homes, relocations, as well as leisure and rental investments.
When investing in international property, it is always advisable to work with a credible real estate brand. The benefits of working with Seeff, include that we are a high profile real estate brand with a credible track-record of 60-years in real estate innovation on the African continent. We offer the latest methodologies, knowledge, and marketing skills with full technical and legal support.
If you would like to know more about property investment in SADC, or Dubai, be sure to visit www.seeff.com to find your nearest Seeff branch.