Broll reveals state of play in SADC property market

For a prospective investor or developer who has set their sights on expanding a retail or commercial property portfolio in Southern Africa, or one who is entering the region for the first time, the way forward may appear complex and uncertain. Conflicting reports, dubious statistics and misconceptions can cloud their route. So how can an investor or developer who wants to spread their investment wings in Southern Africa make an informed and strategically sound decision?

Broll Property Group’s latest research report on certain SADC (Southern African Development Community) countries, entitled SADC Market Snippet 2018, is a powerful and invaluable tool, designed to assist with understanding some property market conditions in the region.

Lyttelton Shopping Centre, one of many managed by Broll

The SADC was established in Windhoek in 1992 to grow the economies of Sub-Saharan African states and foster cooperation and peace amongst its members. Broll Research has put a group of SADC countries, where property investment opportunity presents itself, under the spotlight, and has crafted a brief report which looks at:

  • Country facts;

  • Economic indicators;

  • Global rankings on indices e.g. corruption or competitiveness; and

  • Key indicators in the retail, office and industrial property markets.

 

Research that’s key to investment

Broll Research specialises in converting property data into market knowledge, providing clients with decision-making research that spans the retail and commercial property sectors.

Broll’s research teams across sub-Saharan Africa enable the company to add value to clients’ portfolios, by partnering with them to make well-informed decisions and grow the performance of their investments.

In Mauritius average rental yields of 7.75% – 8% are being achieved within the retail market”

The Broll SADC Market Snippet Q1:2018 takes each of the countries in turn and presents an easily readable and accessible six-part picture to guide the investor on property market conditions in each country.

Investors get the big picture

By extracting data such as GDP alongside ease of doing business rankings, as well as office rentals and yields, there emerges an absolutely fascinating picture tailor-made for investors. As an example –

Country

Real GDP Annual Growth Rate (%)

Real GDP per Capita/ US $

Ease of

Doing

Business

2018

(Rank/190)

Commercial Market

Prime Net Achieved Rent (US$/m²/month)

Average Yield (%)

Average Vacancy Rate (%)

Botswana

4.3

7,767

81

10

8-9

N/A

Madagascar

5.0

429

162

14

14

20

Malawi

4.4

492

110

10

9

20

Mauritius

4.0

10,568

25

13

8.5-9

4-10

Mozambique

4.8

528

138

28

9.5

65

Namibia

3.1

5,935

106

15-18

9

2

South Africa

2.0

7,571

82

15-17.5

8-9

5-15

The report is packed with a wealth of critical data for investors and decision-makers. Taking a closer look at a particular country in the report, for example Mauritius, one finds a country of 1.3 million people, rating well on the democracy index, which is managing to keep corruption levels at bay and is high on the best-countries-for- business index. This ranks it as a favourable location in the SADC region in which to do business.

Mauritius with 58.6% of the population urbanised, intense mobile phone usage at 142 phones per 100 people, internet access with 46.2 users per 100 people and a Real GDP annual growth rate of 4.0%, offers potential for investors and developers. Asking rents are being achieved within the retail market with average yields of 7.75% – 8% being evident. The average yield for offices is generally a bit higher at 8.5% – 9% and demand within the market is forecast to be stable with supply increasing over the next 6 months.

The Broll SADC Market Snippet 2018 is an outstanding guide for retail and commercial property investors, packed with useful data and statistics that will make decision-making that much easier.

To download the “SADC Market Snippet 2018” report go to www.broll.com/publications

Leave a Reply

Your email address will not be published. Required fields are marked *