Look to the rest of Africa for property investments
Even in the face of the current international economic recession, there’s little question that the world will reopen, so now may well be the right time to take advantage of what could be a small window of investment opportunity…
Bold decision-making in terms of long-term property investments within the traditional markets seems essential in the current economic climate.
Capital investment in property is one of the most stable options emerging, ranging from retirement options and long-term property investments, to the opportunity to expand a business investment portfolio.
For South Africans keen to stay close to what they know in the property market, looking towards the rest of sub-Saharan Africa may be of value, taking note specifically of countries that showed strong growth potential before Covid-19.
Uganda
As lockdown conditions ease in South Africa and cross-border travel begins to open for business purposes, Uganda emerges as a possible investment opportunity.
A luxury new development, Pearl Residences, is taking shape on the shores of Africa’s largest lake, Lake Victoria.
Farah Bandali, who heads up the Pam Golding Properties office in Uganda’s capital Kampala, says, “The proximity to Entebbe International Airport and Kampala, as well as the International School of Uganda, makes Pearl Residences an ideal getaway destination for locals and investors looking for a sound rental income.
It’s also perfect for retirees.”
Situated in the Lake Victoria Serena Golf Resort & Spa, the development’s design is inspired by a classic rustic Tuscan village while retaining an African identity. The estate comprises 58 luxury villas and 10 apartment blocks. Each unit type has its own affordable payment plan.
“The first block of apartments, which is slightly different in design and includes eight apartments and one penthouse, is complete, with construction of more apartment buildings well under way,” says Bandali. The penthouses are priced at USD684,000 (±R11,9m) for a 330m2 unit with four en-suite bedrooms, an open plan living and dining area, modern kitchen, study, staff quarters and state-of-the-art security and intercom system.
The 180m2 three-bedroom apartments are priced from USD275,000 (±R4,8m) and also include staff quarters, the same high-quality security and intercom system, and an openplan living and dining area. “We’ve discounted prices on the apartments in the completed building, which differs from the new ones in design.”
The villas are being constructed on plots of approximately a quarter acre, with a generously sized terrace leading out from the master bedroom or from both bedrooms. They include a double garage with outside parking for visitors and a roof terrace.
“In Uganda, freehold and Mailo landownership rights are exclusively for its own citizens,” says Bandali. “Foreigners can only own land or real estate under a leasehold land tenure system, which usually runs from between 49 and 99 years, and is renewable.”
Apart from its 18-hole championship golf course, amenities include a marina with 25 berths, 24-hour security, a luxury community centre with a swimming pool, sporting facilities, a fully-equipped gym, jogging tracks, and a mini-mall that includes a convenience store, salon and restaurants.
Mozambique
Ettiene Erasmus, property developer, Mozambique Property Developments and Investments (Mozprop), placed his own bet on the country 28 years ago, engaging contractually in the field of development, construction and logistics across several industrial sectors.
He searched for the ideal location for a mixed-use residential development that could service both the tourism and business markets.
Erasmus is behind The Bazaruto Island View Estate (BIVE), a development set on a 42ha coastal estate that combines residential, hotel and business property investment options. It’s just outside the coastal town of Vilanculos.
“It’s an attractive investment prospect for retirees and property investors, or even an opportunity to expand a business investment portfolio,” says Erasmus.
Once complete, the fully-contained precinct will include luxury homes, a hotel, beach lodges, a resort, clubhouse, a business centre, medical facility and a small crafts marina with a marine park nearby. The units will offer the potential for live-in, long-term or short-term rentals.
The first stage of the project has begun with the construction of show houses. Prices start from R275,000 to R3,5m for a property on the development, with one-bedroom houses selling for R875,000 in the BIVE private residence section.