The real estate sector continues to be resilient, with the residential market performing well for good quality properties, said Jacopo Pari, CEO of RDC Properties.
Commenting on the group’s 2021 annual results, Pari said current trends revealed that luxury home owners were changing their habits from renting their properties to occupying.
“This has led to a reduction in inventory in the market for good quality residential homes,” he said.
The chairman of the Real Estate Institute of Botswana (REIB), Sethebe Manake, recently told this publication that property hunters can expect the residential sales market to recover this year, following a downward trend. decline in prices driven by the COVID-19 pandemic. She said the rally would likely be driven by the thirst for investment as there are plenty of opportunities in the market.
“The housing market will remain competitive as there is an increased appetite for home ownership among young people and Gen Zers,” she said in response to inquiries from BusinessWeek. “Demand from these young households will keep the market competitive and rapidly changing.”
Manake, who is also the founding director of Vantage Properties, said the pandemic has eaten away at owners’ incomes and forced some to sell below the prices they would have liked. She noted instances where people sold property out of desperation, accepting lower offers rather than waiting up to nine months for offers that may never come.
Last year, more sellers opted to divest from high-income properties in a bid to reduce the pressure on their pockets as they felt pressured by COVID-19, as evidenced by a sharp 20% drop in prices in the high-income residential real estate sector. Between 2020 and 2021, there was a 50% growth in deals, indicating a better deal year.
While the hospitality sector is still recovering from the effects of COVID-19 over the past two years, the office and retail sectors appear to be seeing some signs of recovery, but with demand for large office space not significantly impacted on rental prices. Finally, the industrial sector maintains a good balance sheet with a higher demand for flexi-warehouse units currently observed on the market.