MyProperty: STRONG DEMAND FOR PROPERTY IN MOZAMBIQUE

STRONG DEMAND FOR PROPERTY IN MOZAMBIQUE

2010/01/27 08:35:03 AM

For many years a popular holiday destination for South Africans and Europeans, today Mozambique is a burgeoning tourist centre in Africa with a rapidly growing economy, improved infrastructure and easier access, says Dr Andrew Golding, CE of the Pam Golding Property group, which has an office in the capital city of Maputo.

"Now the spotlight has shifted to a broad range of investment opportunities – in particular exclusive developments, where gaining the rights to develop prime property is paramount. As a result, pristine leisure investment and modern mixed-use developments are emerging throughout the country," says Dr Golding.

With the economic growth and investment taking place in Mozambique, there's a strong demand which exceeds the supply of residential, commercial and industrial property, says Adrian Frey, MD of Pam Golding Properties Mozambique and a Swiss-qualified lawyer who previously managed a large local law firm, Mozlegal, advising and specialising in property related law.

Together with Paul O'Donoghue, who has extensive experience as a property investor and in the tourism trade and is a board member of local development agency, the Malonda Foundation, PGP is currently marketing a range of properties. These include residential property in Maputo and Beira, priced from USD250 000 to USD1 million and prime properties up to around USD2.5 million.

Says Frey: "In addition to prime located, coastal leisure homes and sound investment residential properties in Maputo, where there is a serious imbalance between supply and demand, we have a range of development / investment opportunities as well as commercial and industrial properties, including smaller buildings with a retail and office component situated in provincial towns and cities and well-constructed leisure resorts. Development and/or investment properties throughout Mozambique range in price from USD50 000 to USD1.5 million. Currently commercial and industrial properties are mainly to let, however several are currently for sale ranging in price from USD250 000 to USD500 000 and situated in Maputo and Beira. Competitively priced leisure resorts range in price from USD200 000 to USD 800 000 (per resort)."
Residential developments marketed by Pam Golding Properties range in price from just over R1 million. At Kubali Beach Estate in the Chidenguele area, approximately three hours' drive from Maputo, 45 units are selling off plan priced at R1.43 million for a two bedroom, 170sqm house set back from the beachfront, while the same house, if located on the beachfront will cost R1.78 million. A three bedroom, 198sqm home set back from the beachfront will cost R1.644 million while the same home positioned on the beachfront will cost R1.999 million. For R1.97 million one can acquire a four bedroom, 225sqm house located further back from the beachfront, while R2.325 million will acquire the same house right on the beachfront.

At Praia do Paraiso, an estate situated just outside the town of Vilanculos in southern Mozambique, 32 homes are selling off plan ranging from R1 million for a two bedroom apartment to R3.7 million for a five bedroom house right on the beachfront.

At the luxury beachfront Machangulo Nature Reserve which borders the Mozambique Elephant Reserve in the much sought-after southern region, buyers can acquire a stake in a luxury, fully-furnished four bedroom house which can sleep 12, and includes a huge entertainment area and deck, staff quarters, swimming pool, and numerous leisure activities including shore and deep sea fishing and scuba diving. A 25, 50 or 75 percent stake is available in this ideally positioned home, priced at R3.5 million, R7 million or R10.5 million respectively. The reserve incorporates a total of 120 residential sites as well as an airfield, while a resort hotel and spa is also planned.

On Benguerra Island, adjacent to Benguerra Lodge in the Bazaruto Archipilago National Park, a unique beachfront property, The Villas at Benguerra is also marketed by PGP. Here five villas are available for purchase and which may be designed with two, three or four bedrooms (all en suite), and ranging in size from 400-900sqm. Each villa is located within undisturbed forest and with a lounge, bar, dining room, rim flow pool with martini seating and gazebo, media/sound room and staff quarters. Owners can include their luxury villa in the lodge's rental scheme and have access to the lodge amenities and facilities on a contract basis. Benguerra Island is one of the most beautiful locations in Mozambique and has its own airstrip. Villas are priced from USD1.5 million.

Says Frey: "In Mozambique the law is such that foreigners cannot acquire land, merely the rights to use and develop the land. Those purchasing within developments such as those listed above are not required to apply for those rights to use and develop land as this has been undertaken by the developers themselves. Developers are required to apply for a provincial licence through a registered company, and approval is granted for a period of two years to develop the land according to the plan submitted and approved. After this period, application may be made for definitive title for a 50 year lease, which is renewable."

The holder of a land title may transfer the infrastructure, buildings and improvements but not the land as such – so the sale constitutes the transfer of the relevant rights to use and benefit the land. Foreigners wishing to acquire property in Mozambique need to ensure they fully understand the land law in Mozambique, and PGP ensures that purchasers are provided with copies of all relevant documentation regarding such property transactions, following strict due diligence requirements.

For further information contact Pam Golding Properties Mozambique - Sandy Wilson on +25 882 3698 745 / email sandy.wilson@pamgolding.com or Richard Haller on 083 776 0802 / email richard.haller@pamgolding.co.za.

Ends

Issued by Gaye de Villiers