Residential Real Estate - Botswana

The Residential Real Estate market market in Botswana is expected to reach a value of US$23.24bn in 2024.
This projection indicates a growth rate of 4.31% annually (CAGR 2024-2029), resulting in a market volume of US$28.69bn by 2029.
It is worth noting that, in comparison to other countries, China is anticipated to generate the highest value in the Real Estate market, with a projected value of US$112.9tn in 2024.
Botswana's residential real estate market is experiencing a surge in demand due to its stable economy and attractive investment opportunities.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Botswana has been steadily developing in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the residential real estate market in Botswana have been shifting towards modern and well-designed properties. Homebuyers are increasingly looking for properties that offer a range of amenities, such as gated communities, swimming pools, and recreational facilities. This trend is in line with the global market, where customers are seeking properties that provide a higher quality of living. In terms of market trends, there has been a growing demand for affordable housing in Botswana. The government has implemented various initiatives to address this demand, such as the provision of subsidies for low-income households and the development of affordable housing projects. This trend is driven by the need to provide adequate housing for the growing population and to address the housing backlog in the country. Another trend in the residential real estate market in Botswana is the increasing popularity of sustainable and eco-friendly properties. Homebuyers are becoming more conscious of the environmental impact of their homes and are looking for properties that are energy-efficient and incorporate green technologies. This trend is in line with the global shift towards sustainable living and the growing awareness of climate change. Local special circumstances also play a role in the development of the residential real estate market in Botswana. The country has a stable political environment and a strong legal framework, which provides a favorable investment climate for both local and foreign investors. Additionally, the government has implemented policies to attract foreign direct investment in the real estate sector, which has contributed to the growth of the market. Underlying macroeconomic factors also influence the development of the residential real estate market in Botswana. The country has experienced steady economic growth in recent years, driven by sectors such as mining, tourism, and services. This has led to an increase in disposable income and a growing middle class, which has fueled demand for residential properties. Additionally, low interest rates and favorable mortgage financing options have made it easier for individuals to purchase homes, further driving the market. In conclusion, the residential real estate market in Botswana is developing due to customer preferences for modern and well-designed properties, the demand for affordable housing, the popularity of sustainable properties, local special circumstances such as a stable political environment and favorable investment climate, and underlying macroeconomic factors such as steady economic growth and favorable financing options. These factors are driving the growth of the market and shaping its future trajectory.

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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.

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Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Botswana

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Living Space

Methodology

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