Real Estate - Lesotho

Lesotho

Lesotho's Real Estate market market is estimated to reach a value of US$21.29bn in 2024.
The market is predominantly driven by the residential segment, which is projected to have a market volume of US$17.59bn in the same year.
The sector is expected to experience a Compound Annual Growth Rate (CAGR) of 4.73% between 2024 and 2029, resulting in a market volume of US$26.82bn by 2029.
When compared on a global scale, United States is anticipated to have the highest Real Estate market value, reaching US$132.0tn in 2024.
Lesotho's real estate market is experiencing a surge in demand for luxury properties due to the country's growing tourism industry.

Key regions: United States, China, Japan, Germany, United Kingdom

Market

Region

Region comparison

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Analyst Opinion

The Real Estate market in Lesotho is experiencing a steady growth, driven by customer preferences for affordable housing and the country's unique geographical location. Lesotho, a small landlocked country in Southern Africa, is known for its beautiful landscapes and cultural heritage.

Customer preferences: Customers in Lesotho have a strong preference for affordable housing options. The majority of the population falls within the low to middle-income bracket, and affordability is a key factor when it comes to purchasing or renting property. As a result, there is a growing demand for affordable housing solutions in the country.

Trends in the market: One of the key trends in the real estate market in Lesotho is the development of housing estates and gated communities. These developments offer a range of housing options, from apartments to standalone houses, and provide residents with amenities such as security, recreational facilities, and access to basic services. This trend is driven by the desire for a safe and comfortable living environment. Another trend in the market is the increasing popularity of commercial real estate, particularly in urban areas. There is a growing demand for office spaces, retail outlets, and industrial properties as the country's economy continues to expand. This trend is fueled by the growth of various industries, including manufacturing, services, and tourism.

Local special circumstances: Lesotho's unique geographical location is a special circumstance that contributes to the development of its real estate market. The country is surrounded by South Africa, which is a major economic hub in the region. This proximity to a larger market provides opportunities for cross-border investments and trade, which in turn drives the demand for real estate.

Underlying macroeconomic factors: The growth of the real estate market in Lesotho is supported by several underlying macroeconomic factors. The country has a stable political environment and a well-regulated financial sector, which instills confidence in investors. Additionally, Lesotho has been experiencing steady economic growth, driven by sectors such as mining, textiles, and construction. This economic growth creates employment opportunities and increases disposable income, leading to an increased demand for real estate. In conclusion, the Real Estate market in Lesotho is developing in response to customer preferences for affordable housing and the country's unique geographical location. The market is characterized by the development of housing estates and gated communities, as well as the increasing popularity of commercial real estate. Lesotho's stable political environment, well-regulated financial sector, and steady economic growth are underlying macroeconomic factors that support the growth of the real estate market.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. 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 particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

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.