Real Estate Investor Magazine Mozambique Real Estate Investor Magazine Mozambique 2014 | Page 15

upfront

MOZAMBIQUE REIM: Many thanks for
being available for this interview, Andrew,
as we know your schedule is demanding,
speaking of which, is it correct that you were
at the Mozambique Real Estate Conference
earlier this year?
ANDREW GOLDING: “Yes.”
MOZAMBIQUE REIM: What were
some of the aspects Mozambique needed to
identify with in terms of regulating the real
estate market?
ANDREW GOLDING: “I’m certainly
no expert on the Mozambique residential
market. We have had a Pam Golding office
in Maputo for a number of years. It’s been
fascinating to see the extent at which the
top end of the Maputo market - which we
generally specialise in as an organisation has developed. The Mozambican economy
has benefited from the emergence of the
global economic recession; in particular, some
exceptionally good news stories have been
about Mozambique.
As an organisation, we have aspirations to
be the property services provider of choice
throughout the continent, wherever it makes
sense. We are extremely optimistic. Africa’s
time has come and there are significant
opportunities in many markets throughout
the continent. Mozambique is potentially a
shining light in this regard.
As far as regulation itself is concerned,
we have been fortunate to be able to play a
positive role in other African countries. We
do this by suggesting and promoting global
best practices in the residential real estate
sector, to the extent that this is desired
and required in Mozambique. We will be
delighted to play a similar role.”
MOZAMBIQUE REIM: Bringing in
the macro aspect, what is your view on the
African real estate market as a whole?
ANDREW GOLDING: “Apart from
Mozambique, where there is lots of activity
across all segments of the property sector; in
Nairobi (Kenya) the market is doing very well
with strong buy-to-let developments.
However, it is experiencing a shortage
of stock and yet it has many buyers with
purchasing power. There is a strong but
small residential market in Lusaka (Zambia).
Namibia, Zimbabwe and Swaziland
www.reimag.co.mz

meanwhile are enjoying a strong residential
market characterised by a shortage of stock,
good to moderate price growth and a strong
buy- to-let market.”
The two countries with massive growth
opportunities, which we are now targeting,
are Angola and Nigeria. The Nigerian market
is huge (150 million people) and is potentially
an enormous opportunity. It, however, has
many potential pitfalls.
Uganda is an interesting market. We
have just been appointed to do a residential
golf estate, situated between Entebbe and
Kampala, on a beautiful site on Lake Victoria.
Her 100 residential units are being launched
to an average cost of US$1 million per unit.
In Uganda and several other countries, there
is a great deal of demand for up-market
property.”
MOZAMBIQUE REIM: In terms of high,
middle and low-income earners; what is the
sector driving the most growth across the
African continent?
ANDREW GOLDING: “If one takes an
optimistic view of the property market across
the African continent, then one arrives at
a conclusion that all three sectors (i.e. the
lower end, the middle and the top end) have
enormous growth potential, each with their
own inherently specific factors. Each market
has its own peculiarity and drivers, whether
this is at the lower end, the middle or the top
end. These markets obviously vary from time
to time, depending on the specific economic
circumstances, which prevail in each country
or region.”
MOZAMBIQUE REIM: Many people
are unaware of what the African markets
are producing. Which countries do you see
being the most appealing in terms of risk,
ease of navigation, and returns for foreign
investors?
ANDREW GOLDING: “As alluded to
above, each country, region, city and even
suburb has specific factors which the local
market is aware of and which potential
investors need to familiarize themselves with
these factors. In our view, the continent is
littered with opportunity but, like any market,
a potential investor needs to completely
familiarize themselves with all of the factors,
both positive and negative, in order to
make an informed decision. Obviously, this

“Africa’s time has
come and there
are significant
opportunities in
many markets
throughout
the continent.
Mozambique
is potentially a
shining light in this
regard.”
includes consultation with a reputable and
trustworthy property company where the
advice given serves to enhance the decision
making process.
Opportunities for property investment in
Africa range from large property development
in all segments of the market, from low cost
housing through to exclusive villas, as well
as on an individual property basis. These
depend, however, on the particular buying
needs of the individual.
In our experience, there is often a mix
of objectives when it comes to property
investment. This mix can, for example,
include investment returns and leisure usage.
So, the bottom line here is the investor needs
to