Commercial Real Estate - Botswana

The Commercial Real Estate market market in Botswana is expected to reach a value of US$13.77bn in 2024.
This projection indicates a steady growth rate of 2.23% per year from 2024 to 2029, resulting in a market volume of US$15.38bn by 2029.
It is worth noting that in terms of global comparison, the United States is anticipated to generate the highest value in the Real Estate market, with an estimated worth of US$25.3tn in 2024.
Botswana's commercial real estate market is experiencing a surge in demand due to the country's stable economy and growing business sector.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Botswana is witnessing significant development and growth in recent years.

Customer preferences: Customers in Botswana are increasingly seeking high-quality commercial properties that offer modern amenities and facilities. They are looking for well-designed office spaces, retail outlets, and industrial properties that can cater to their specific business needs. Additionally, there is a growing demand for commercial properties located in prime areas with easy access to transportation and other infrastructure.

Trends in the market: One of the key trends in the Commercial Real Estate market in Botswana is the increasing construction of mixed-use developments. These developments combine commercial spaces with residential units, retail outlets, and entertainment facilities, creating vibrant and integrated communities. This trend is driven by the desire for convenience and the need to optimize land use. Mixed-use developments also attract a diverse range of tenants and customers, contributing to the overall growth of the market. Another trend in the market is the rise of sustainable and green buildings. Customers are becoming more environmentally conscious and are looking for commercial properties that are energy-efficient and environmentally friendly. Developers are responding to this demand by incorporating sustainable features such as solar panels, rainwater harvesting systems, and efficient insulation in their projects. This trend aligns with global efforts to reduce carbon emissions and mitigate the effects of climate change.

Local special circumstances: Botswana's stable political environment and strong economic growth have attracted foreign direct investment in the Commercial Real Estate sector. International companies are expanding their operations in the country, leading to an increased demand for commercial properties. This has resulted in the development of new office spaces, retail centers, and industrial parks to accommodate the growing business activities.

Underlying macroeconomic factors: The Commercial Real Estate market in Botswana is influenced by several macroeconomic factors. The country's GDP growth, stable inflation rate, and low interest rates create a favorable environment for investment in commercial properties. Additionally, government initiatives to promote economic diversification and attract foreign investment have further stimulated the market. Botswana's strategic location as a gateway to Southern Africa also makes it an attractive destination for businesses, contributing to the growth of the Commercial Real Estate market. In conclusion, the Commercial Real Estate market in Botswana is experiencing significant development and growth due to customer preferences for high-quality properties, trends such as mixed-use developments and sustainable buildings, local special circumstances including foreign direct investment, and underlying macroeconomic factors such as GDP growth and government initiatives. These factors are driving the expansion of the market and creating opportunities for investors and developers in Botswana.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.