Monday, October 26, 2020

Mogae’s retirement house doing miracles for Phakalane

With construction of the multi-million-pula retirement house for President Festus Mogae now underway at Phakalane Golf Estates, there has been reported soaring of prices of houses at the location.
Phakalane Estates Managing Director Lesang Magang has confirmed.

He said the last few years have been flat but recently a house fetched P4 million, the most expensive in the history of Botswana’s residential property market.

Indications are that the housing market could be on the verge of a stronger rebound.

Magang confirmed its first time a house sold and surpassed the P4 million mark.

He said this makes it the most expensive house ever sold in Botswana.

Although he would not say it in so many words, property analysts say the decision by government to build a luxury retirement home for President Mogae at the resort is a key factor.

“Mogae’s home adds an aura of security and sentiment in the neighbourhood,” said one analyst.
“Appreciation can only continue,” added Magang.

He attributed the bullishness to a number of factors.

He said the rebound could be riding on the crest of a buoyant mining sector, a result of a number of diamond cutting and polishing companies that are lining up to set up shop in Botswana following an agreement reached by government and De Beers to move the diamond trading and marketing arm of De Beers (Diamond Trading Company) from London to Gaborone.

There have also been significant discoveries made in the areas of coal, gas and gold in Botswana.
A lot of exploration is also ongoing at the moment.
And executives from the mining companies are looking for accommodation, hence a rapid hike.
“And it’s very important in view of the fact that this P4 million is by no means the largest house at Phakalane.”

The restructuring of SADC (Southern African Development Community) has also had an effect of reawakening the housing market.

Under the SADC restructuring all the arms of the organization hitherto scattered over the countries in the region will be clustered in Gaborone.

Staff of the SADC sectors coming to Gaborone will need houses and the market is responding.

“The residential market will start to experience tremendous growth. In particular BEDIA will like the Republic of South Africa to be able to sell lifestyle estate concepts to the world,” says Magang.

He adds that this makes Botswana easier to sell as an investment destination when citizens own property.

The neighbouring South Africa has also been experiencing a long run with soaring housing properties in Johannesburg with the retiring Europeans descending on the country to take advantage of the stronger Euro against the Rand priced houses.

Magang said in keeping with the buoyant market, Phakalane is finalizing plans to launch lifestyle homes in greater Phakalane for young professionals just coming out of the university.

“This will further grow middle class of Botswana which augurs well for economic growth and diversification,” he said.

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