3rd October 2018
by Dr. Wilbert R. Mutoko (Email: wilbertmutoko@gmail.com)
Ever since I wrote 100 Business Opportunities in Botswana Part 1, I have received several emails and social media comments and questions concerning the opportunities available in Botswana. I count it a privilege to write more about the subject.
Today I focus on opportunities in property. In my opinion, commercial property is oversubscribed at the moment. There are many malls built and others are being built now. However, I am not sure whether Botswana needs more commercial and industrial properties at this juncture. Furthermore, quite a number of shops and offices are vacant.
Therefore, for the sake of this article, I will be writing about business opportunities in residential properties. Over the past decade, there has been an increasing rural-urban migration in Botswana which led to a rise in demand for residential property.
The homes that are in high demand are one-bedroomed and two-bedroomed apartments/houses. To some extent, you will not go wrong with three-bedroomed apartments/houses. However, anything from four-bedroomed and above, which is for the upper middle class and the wealthy, may not be much of a good bet. This is because the number of people in that upper class willing to rent your home may not be many; the majority of people in that band can easily afford to buy homes, hence no need to rent.
If you are considering buying a home or building multi-residential properties, this is the right time. Another area which needs investment is student accomodation. Tertiary students run short of accommodation, hence the high demand for student accommodation. If an investor builds houses for sharing, where students can pay a monthly rental of BWP400 to BWP700 (USD40 to USD70), there is hope for a good return.
There was a crazy boom on the property market for some years until a year or so ago. Before the boom ended, sellers were reaping high rewards from selling homes. However, currently, in Botswana, particularly the main cities Gaborone and Francistown, things have changed. The market is now a buyer’s market. Buyers have higher bargaining power. There are lots of houses being auctioned and generally on sale. Homes are therefore cheaper for the buyers and renters. This could be the right time to buy houses and rent them out and/or keep for resale at an opportune time.
Generally, a rough idea of prices for one-bedroomed to three-bedroomed house ranges from BWP800,000 (USD80, 000) to BWP1, 200, 000 (USD120, 000) depending on the location.
I hope this gives you a hint about the opportunities in Botswana property sector.
If you have any questions, please let me know.
If you know more about Botswana property opportunities, please feel free to share on this platform.
I write as a business person and passionate sharer, not as a property guru. So, please seek professional advice from experts when necessary.
Email: wilbertmutoko@gmail.com