24 May 2010
Until very recently, property in Angola was among the most valuable in the world, but the economic crisis has severely weakened the demand for multimillion dollar houses.
Thanks to record oil prices in 2007 and 2008 this oil-rich country had a surfeit of demand for luxury homes from the oil sector.
Oil and property prices have settled down since then.
“I’m now seeing opportunities in other segments of the markets, like building houses for young Angolan workers and their families,” says Nuno Serrehno, head of Colliers in Angola.
Analysts said in a Reuters survey that Angola’s will grow by an estimated 9,4% this year due to the recovery in oil prices. Such growth rates indicate that the housing market will improve at the lower end of the middle class.
The former Brazilian soccer star Pele has recently established himself as a property developer in Angola.
He is now selling three-bedroom apartments outside Luanda at $200,000 each. It is about a fifth of the price of a one-bedroom apartment in the CBD of Luanda.
Angola’s three-decade long civil war, which lasted until 2002, has also led to large-scale urbanisation and Luanda has a serious shortage of housing. A third of the country’s 16,5 million people live in the capital.
Pres. José Eduardo dos Santos has launched incentives to build 1 million new homes before 2013.
Import tariffs on certain building materials were lifted last year while several new cement factories are in the pipeline.
Angola imports up to 90% of its cement. – Reuters
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