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Real Estate Boom In Mozambique May Be Leaving Locals Out In The Cold

Real Estate Boom In Mozambique May Be Leaving Locals Out In The Cold

From Ventures

Some 38 years after winning its fight for independence, Mozambique is still battling to get its property market in order. Today, it faces a new challenge: the return of Europeans to its cities and coastlines. Beachfront plots are being turned into holiday homes for wealthy foreigners while rents in the capital, Maputo, have increased from the influx of expats. Rising costs in Mozambique’s cities are starting to force out locals, and developers are exacerbating the problem by demolishing low-end homes and rebuilding them as high-end properties aimed at foreign buyers.

It is difficult to blame visitors for finding Mozambique so attractive. The Portuguese-speaking country has a tropical climate, 2,500 kilometres of mostly unspoilt coastline, excellent diving and strong economic growth. And thanks to Mozambique’s rapid development, says estate agent Pam Golding, foreign buyers can also expect access to international schools, modern supermarkets, malls and a highly efficient healthcare system – depending, of course, on where they buy.

Several big names in South Africa’s property market have expanded their business to Mozambique. As of November 2013, Remax was offering a holiday home in Xai-Xai for around $350,000, while Mozambique Properties had listed a lodge with a spa and gym for $1.5 million. Alongside upmarket homes in Maputo, South-African-run websites devoted to property in Mozambique offer full or part-ownership of holiday units in popular resorts like Ponta d’Oura and Inhambane. An up market, three-bedroom beach house can cost from $150,000 to $500,000.

Read more at Ventures