Botswana is regarded by the World Bank as one of the most politically and economically stable countries in Southern Africa. It offers an environment geared towards growth and development. This, says Kim Bekker, licensee for Seeff Botswana, includes welcoming foreign investment with opportunities to invest in commercial and residential property.
Botswana has a vibrant economy with a world-renowned diamond industry, tourism sector, manufacturing, as well as a growing service sector, including financial and ICT. It also benefits from the close proximity to South Africa for trade and other purposes, as well as other SADC countries. Botswana's GDP outlook for 2024/5 is around 4.2% while inflation stood at 3.9% as at February.
The country also offers a favourable tax environment, with repatriation of profits, dividends, and capital. Botswana boasts a robust legal system which is aligned to international law and embraces international arbitration for investment disputes. Any foreign investor should, however, always do their due diligence and get the necessary financial, legal, and tax advice.
Botswana is particularly keen to attract Foreign Direct Investment with various incentives available to draw more businesses and industries to the country. Gaborone is, for example, regarded as one of the fastest-growing cities. This, combined with the growth in the middle class and urbanisation, are all excellent reasons for foreign investors to look at investing in the commercial and residential property markets, says Kim.
According to statista.com, the Botswana real estate market is stable, with an anticipated growth rate of 5.43% between 2024 to 2028. It is also expected that the stable economy and growing middle class will further boost demand for commercial and residential property.
Foreign entities and individuals can generally own residential and commercial properties in Botswana, but there are limitations on land ownership. Certain costs apply on acquisition of property, including transfer duty payable, while Capital Gains Tax is payable on disposal.
Kim says commercial property opportunities include aspects such as shopping centres, offices, and industrial warehouses. The economic growth has led to higher demand for commercial property, including office and retail spaces, and the development of modern facilities available in Gaborone, Francistown, and Maun.
The residential sector has also attracted development, especially in the more affordable price bands, which offer excellent rental investment opportunities for foreign property investors. Seeff is currently marketing a number of these off-plan developments, including:
Seriti Estates - the development is located in Mmopane, adjacent to the Bokamoso Hospital. It offers two-bedroom apartments with modern finishes, suitable for singles, families, as well as some options suitable for paraplegics. Communal facilities include a clubhouse and swimming pool, paved braai areas with picnic benches and landscaping, a mini/action soccer pitch, a volleyball court, communal open lawned areas, outdoor gym equipment, and a kids play area with jungle gyms and lawn. Prices start from BWP669,000.
https://www.seeff.co.bw/results/new-development/residential/mmopane/mmopane-central/3/
Bodulo Apartments - the development is located in the heart of Peto Estate, in Phakalane. It comprises of 84 one and two-bedroom apartments built in 8 blocks with modern finishes. It is designed for privacy, with each block facing away from the other block's balconies. Features include access control and 24-hour security, providing a safe environment for families to live in. It is conveniently located in proximity to shops, schools, and transport routes into the city centre. Communal facilities include a braai and entertainment areas, and a swimming pool. Prices start from BWP825,000.
https://www.seeff.co.bw/results/new-development/residential/gaborone/phakalane/2/bodulo-apartments/
Kim concludes by stating that due diligence is always essential for any property investment. It is important to work with a local real estate agency with experience, direct knowledge, and expertise and can provide the correct advice and property recommendations for investors. This would include advising on any potential legislation pertaining to rentals, the rental returns that the investor could expect, risks in the market, as well as the rights of tenants, and so on.
For more information on opportunities in Botswana, contact Seeff Botswana, visit https://www.seeff.co.bw/.