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Businessmen, Investors Unphased by Escalating Real Estate Prices in Mozambique

Businessmen, Investors Unphased by Escalating Real Estate Prices in Mozambique

From Ventures Africa

It is 9:58 am on a Tuesday morning. A group of shoppers wait anxiously for South African chain Woolworths to open at 10:00 am. Two of the irritated shoppers, Andre and Alicia, originally from Portugal, live in a $5000 per month condo, situated on the third floor of this commercial center. Not surprised by the rent they pay in Maputo’s newest shopping mall, Centro Commercial Mares, they are disturbed by the hours of operation for businesses in the shopping center. The price, they say, is worth it because they have safety and reliable utilities and are situated next to Maputo’s famous Costa do Sol beach.

Further south along Avenida Marginal, a seafront road along Mozambique’s booming capital, sits the newly erected Radisson Blu hotel and the construction site for the expansion of the Southern Sun hotel. A quick right turn up Rua Jose Craveirinha takes you to Avenida Julius Nyerere and the growth center of Maputo’s real estate boom.

Apartment blocks, hotels and modern offices characterise the changing waterfront and city center of Maputo. Slowly displacing the Portuguese colonial style buildings are new condominiums and two to three bedroom apartments that rent for at least $2000 to $3000. The older apartments will still cost about $800 to $1000. Mozambique’s GDP per capita will hit about $1250 for 2013. Prices are obviously inflated. But regardless the increase in price, buyers come in doves, largely from Mozambique’s thriving energy industry. It is no wonder people think this country is Angola waiting to happen, says a finance manager at Vale, at current projected growth numbers for real estate prices, only oil & gas companies will survive in the country.

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