International buyers, take note of the lower transfer duty rates and make an attractive investment in Botswana’s property market
Are you seeking a new property investment opportunity? The great news is that as of May 2023, Botswana has reduced its property transfer duty rate for international buyers. For property purchases up to BWP2 million, the property transfer costs are down from 30% to 10%.
Kim Bekker, the director of Seeff Properties Botswana, expects these amendments to reinvigorate the entire market sector. With lower transfer duty rates, the property market in Botswana is poised to attract a surge of buyers and investors, unlocking the country's immense potential.
However, Kim Bekker does encourage caution. Approximately 74% of the land in Botswana is categorised as Tribal Land, governed by the Tribal Land Act of 2022. The provisions of this Act strictly regulate the sale of this land to non-citizens.
To navigate the legal complexities, Kim strongly advises any non-citizen seeking to invest in Botswana to engage the services of a trustworthy and experienced legal practitioner.
While these property transfer cost amendments primarily benefit foreign buyers, it's worth noting that transfer duty rates for Botswana citizens remain unchanged at 5%. Buyers are exempt on the first BWP1.5 million for non-first home purchases, with a reasonable 5% duty payable on the remaining amount. However, first-time homebuyers who are Botswana citizens can enjoy the added advantage of being exempt from paying transfer duty.
Why You Should Purchase Property In Botswana Amid The Property Transfer Cost Amendments
According to data from the World Bank, Botswana is recognised for its stability, propelled by its substantial mineral wealth, particularly in diamonds. The nation boasts robust institutions, prudent economic management, and a relatively small population.
Additional reasons to invest in Botswana property include the following:
- Botswana is a captivating tourist destination with favourable weather year-round and breathtaking wildlife.
- The country's economic growth is fueled by its expanding service industry, flourishing tourism and manufacturing sectors, and the growing financial services and ICT sectors.
- Botswana boasts many well-established amenities, including financial and medical facilities. You can also find popular South African chain stores and multiple shopping malls.
Botswana Property Prices And Rentals
Seeff Properties Botswana reports residential sales prices averaging between BWP2 million and BWP3 million. For luxury properties, prices range from BWP4 million to BWP7 million. According to Kim Bekker, foreign buyers typically prefer acquiring high-end apartments or spacious homes with gardens, falling within the price range of BWP4 million to BWP8 million.
Regarding residential rentals, Seeff's average monthly rates range from BWP8,000 to BWP12,000 for the highly sought-after properties, while higher-end properties command rents between BWP15,000 and BWP25,000. Before the pandemic, rental yields typically ranged from 7% to 10%. However, it is important to note that landlords and tenants are free to negotiate rental agreements.
As for office rentals, prices range from BWP80 to BWP120 per square metre. For industrial rentals, between BWP30 and BWP45, and retail from BWP200 to BWP280 per square metre.
Favourable Property Transfer Costs Fuel The Property Market’s Growth
The country's remarkable political and financial stability is one of the primary catalysts behind Botswana's thriving property market. This environment of stability has instilled confidence in investors, leading to a significant influx of foreign investments. Consequently, numerous high-end residential properties and commercial buildings have emerged.
Recognising the growing demand for housing, the government has implemented policies to provide affordable housing options to its citizens. These initiatives have not only addressed the population's housing needs and played a pivotal role in driving the property market's growth.
Property Transfer Costs Boost Botswana's Commercial Sector
Botswana's economy is steadily growing, providing many business and commercial property opportunities and attractive investment prospects. However, it's important to note that the Botswana Government has designated certain industries exclusively for its citizens.
This strategic move aims to foster citizen empowerment within the economy. Industries reserved for citizens include bread and confectionery production, guest houses, bottle stores, and filling stations.
The government has established dedicated facilities to facilitate foreign investors interested in business in Botswana. These resources are specifically available for select business sectors.
Don't miss out on this incredible opportunity to be a part of Botswana's booming real estate market. Take advantage of the reduced transfer duty rates and join the league of successful buyers and investors tapping into Botswana's potential.
Reach out to Seeff Properties Botswana today, and let us guide you on this exciting journey of property ownership and investment in Botswana.
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