Following a prolonged period of high prices in the property sector, they have since started to stabilise, property expert and Director of Maruping Real Estate Modiredi Maruping has said.
“The industrial market is stable and generally improving. Poor performance would mean returns, prices and values are going down. Overall good improvement and performance is on industrial property,” said Maruping
Botswana’s property market prices was at some point growing, forcing pundits to sound warning bells of a looming crash.
At the time, there were indications that the long running surge in property prices was edging towards a sharp nosedive. The market appeared to portray two factors – the lingering possibility of a crash and the reality of soaring property prices.
However, this week, Maruping, who is the President of the Real Estate Institute of Botswana, told Sunday Standard that the local property market has without a doubt stabilised.
Giving an insight on prices, Maruping said that residential market appears to be weakening against industrial market in terms of value and price.
After a long run of particularly strong returns stemming from the acquisition of property for the past three years by the residential market, prices has been going up at a faster rate for a long time.
Maruping also noted that the prices for residential property have seen a slowing down after increases in the recent years.
On property funding, Maruping said that although banks had started giving out more loans and making it easier to acquire their services to eligible participants so that they invest in property, it is not satisfying and effectively done.
“Banks have started giving more loans and easing restrictions. It is still not enough but it seems we are slowly seeing some positives. There are still worries on loan arrears with lending institutions.”
For industry participants, Maruping says they should reflect a more cautions attention to it but in it as it has remained strong.