Lack of supply has led to high yields in Botswana

December 08, 2005

Last Updated: Dec. 08, 2005
GABORONE & FRANCISTOWN COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
75 sq. m. 70,000 550 9.43% 933 7.30
100 sq. m. 110,000 680 7.42% 1,100 6.80
150 sq. m. 150,000 950 7.60% 1,000 6.30
200 sq. m. 180,000 1,100 7.33% 900 5.50
250 sq. m. 230,000 1,400 7.30% 920 5.60
300 sq. m. 270,000 1,700 7.56% 900 5.70
350 sq. m. 310,000 2,000 7.74% 886 5.70
600 sq. m. 550,000 3,000 6.55% 917 5.00
Source: Global Property Guide

According to Global Property Guide research, yields of 6.5% to 9.5% can be enjoyed on residential property in Gaborone and Francistown. A 200 sq. m. property would cost about BWP1.1million (US$180,000), and rent for about BWP 6,675 (US$1,100) per month; a yield of 7.3%.

However Knight Frank Botswana reports considerably higher yields, of around 11% to 12% for a three to four bedroom executive house in Gaborone, and 12% to 18% for a four bedroom house in Francistown.