Office space market down on increased supply

While Property market remains stable during turbulent economic conditions brought by Covid 19, the market for office space remained weak due to increasing supply from completed construction developments. Bank of Botswana Monetary Policy report for August 2022 indicates that new developments such as the Botswana Unified Revenue Service building at the Gaborone Central Business District ( CBD) and the Innovation Hub building contribute to oversupply of office space.

“Furthermore, demand remains weak and uncertain due to generally subdued business conditions following the advent of COVID- 19 pandemic.” The report further states that despite the negative impact of the pandemic and generalised weak demand for office space, there has been continued good office enquiries and/ or uptake in the CBD and Showgrounds. Going forward, there is a possible likelihood for a slowdown in uptake at the CBD should Government institutions remain in their current premises and location. In addition, the supply of office space is projected to increase further, given the ongoing construction projects and planned office buildings at the CBD, such as by the Botswana Housing and Water Utilities Corporations. These will further exert downward pressure on rentals, especially in the decentralised office locations.