Are you trying to sell your property in Botswana fast for good money? You must be wondering if that is possible under the current circumstances in the country.
Yes, you can certainly get someone to buy a property in Botswana online, provided you do your research, work hard on the marketing or hire the right overseas property specialists who do this for you. Here’s what you should know about the real estate situation in Botswana.
Botswana has a real estate crisis. This has been going on for many years now, but has gotten worse recently. There is a real reason for this – there are far too many people in Botswana and not as many homes available. There is a serious shortage of housing stock.
Property in Botswana is overvalued. An average home for sale here costs $60,000 while the per capita income is $7,383. Actually, this is not too bad – Botswana has one of the highest per capita incomes in Africa and is considered to be a middle income country rather than a poor country.
The property market has done spectacularly well over the last decade, growing in double digits every year. The average return in property was 20.9% in Botswana last year according to the IPD Annual Property Consultative Index. But this throws serious questions.
“The question that was never answered effectively was: how could it be that our property market could be growing and making such astronomical returns during a recession?” asks a columnist for the prominent local newspaper Boidus Focus, Killion Mokwete.
Mr. Mokwete adds, “The current conundrum that the country faces has all the hallmarks of the 2008 US housing bubble which played a major role in the global economic crisis. This housing bubble, defined as ‘the rapid increases in the valuations of real property until unsustainable levels are reached in relation to incomes and other indicators of affordability’ rings true to the state of our property market”
Another expert on Botswana real estate, Sethebe Manake, Founder, Chief Executive Officer (CEO) of Vantage Properties, says, “The rapid growth of the property market was inevitable. There was limited housing stock in the market, in the face of skyrocketing affordability and a savvier customer base. The thriving market automatically resulted in price escalation.”
“The trend continued unabated to a point where almost everyone who has property somewhere has eaten off its value. Now there is nothing left and people are unable to squeeze out any value from their property to cater for their increasingly expensive lifestyles. They end up defaulting on their mortgage payments,” Mr. Manake adds.
So will there be a housing market crash in Botswana? That looks unlikely as of now. For sure, there will be a decline in property prices as builders reduce the prices of homes and apartments bowing to the pressure from the government, which wants some sanity in the housing market here.
But the possibility of a crash look remote as of now, as the demand for homes in Botswana is genuine. So any fall in home prices will be bought into by the local investors.