In keeping with the trend for much of 2018, the property market is reported to have closed the year even weaker.
This is according to Bank of Botswana (BoB)’s Monetary Policy Report for the month of April, which has found that overall the average price for residential property sold in the final third of 2018 decreased by 11.6 percent.
An average residential property is said to have sold for around P700, 000 when compared to the previous third, reflecting the weaker demand for the higher-end residential housing.
However, it is reported the residential-market for the lower-end and medium-cost properties observed good demand and supply. In the short term, demand for lower-end prime located residential housing is expected to register slight improvement.
The central bank warns that the current cautious lending environment is likely to impact negatively on value prospects for medium-cost and higher-end residential housing.
Meanwhile, the office space market is suffering due to increasing supply from completed construction development. BoB says in its report that despite the general modest demand for office space, there has been reasonable take-up of office space at Gaborone’s Central Business District (CBD) by government, which is increasingly becoming a major office space occupier.
With ongoing construction developments and planned office developments, supply of office space is likely to increase even more. Demand for retail space is reportedly fair across all market segments, with proposed centres in Gaborone Block 10 Mogoditshane.