Property returns maintain bullish trend

A report by international property market experts, Investment Property Databank (IPD) shows that Botswana’s property sector returns are beating inflation by over two fold despite market sentiment, which points to oversupply particularly in the secondary space.

Headline inflation in Botswana for 2013, was 5.7 percent, down from 7.5 percent in 2012 – translating into an even greater improvement in total returns to investors and owners when viewed in real, inflation adjusted terms. Published only for the third time in Botswana following the inaugural launch in 2012, the 2014 IPD report extrapolates an index that estimates the performance of the property market in 2013 as measured by returns against capital employed on open market valuations.