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.
Comments
montshwari Mooketsi | July 14, 2010
The property in general in gaborone continue to rise at an alarming rate due to lack of supply of serviced land and there is no more land in Gaborone except of the last pieces around block 10 airport road. This has resulted in pushing price to ridicules levels. It would not suprise me to see such aincrease but not P11million yet for 200m hover it depends which part of Gaborone and the size of the plot hence I cannot role out that possibility of P11million house in Gabs.
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