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.