2nd Edition of MOZAMREAL – Forum on the real estate market
Mozambique, a market where the force is on the side of the buyer
The second Bilingual Real Estate Forum to be held on June 5 will help in making investment decisions in the country’s emerging real estate market, said host Kfir Rusin.
“In the last 12 months, the market has improved significantly. This year we will explore how companies can position themselves, which is expected to become one of the top real estate markets in Africa in the next five years. ”
As Managing Director of African Property Investments (API) Events, the leading producer on the continent of networking conferences focused on real estate opportunities, MozamReal will highlight the improvement in investment indicators to national, regional and international investors.
Rusin’s optimistic view is shared by Manuel Vieira, president of Meridian32, one of the most important independent providers of real estate services in Mozambique.
“Absolutely, if you have the capital to make a bet for a five- to seven-year exit strategy, Mozambique is the place to be and the time is right now.”
As Manuel Vieira explains, “the recent increase in market inquiries is driven by the expectation of the imminent announcement of ‘Final Investment Decisions’ by both ExxonMobil and Anadarko.”
On the road to success at MozamReal in 2018, this year’s edition is attracting significant attention from national and regional investors and promoters with the potential to be one of the most prominent events in Africa in 2019, says Rusin.
“Last year the market was difficult for many, but the number of national and international brands in partnership with us is evidence of an improvement in sentiment, driven by LNG projects and investment in the market by large funds and banks.”
Manuel Vieira confirms, “Expectations are that soon after the announcement of investment decisions, economic activity enters a sharp growth curve.”
And while investors and promoters are moving and positioning themselves for growth, the market still has attractive prices for investors, says Manuel Vieira.
“It is a market made for buyers, prices are still low in all segments.” Despite his optimism, Manuel Vieira warns of prudence and understanding of the fundamentals of the Mozambican market.
“Decisions will have to be made at the right time. As soon as the Final Decisions of Investment are announced, we expect a 20% to 30% increase in all segments. And we expect this curve, over a slightly longer period, to exceed 100% in the housing market. ”
In addition, “initially, we expect the momentum is reflected in the segments of Offices and Residential. Retail will come with a 24-month delay until private consumption and household disposable income levels rise again. Logistics will have a significant investment, but will mainly be located far from the southern provinces, as these infrastructures will be erected alongside extractive and gas projects.
Nacala, Pemba and Palma will be investment areas, driven by the operations of the extractive industries and the logistics services located in these ports. ”
While in these places the horizons are medium and long term, Manuel Vieira predicts that Maputo will be the most attractive destination. “The city of Maputo, due to its nature as capital, will always be the biggest beneficiary of real estate investment.”
As investment motivations in Mozambique increase in various sectors and geographies, Rusin expects the forum this year to witness the announcement of new business in what has become the definitive, bilingual industry event for real estate investors in Mozambique.
“We have received many expressions of interest from investors in the international community and we believe that we will see a significant number of initiatives between national and international companies at Mozamreal.”
This, too, is an opinion that Manuel Vieira shares. “The benefits of MozamReal are many. From sharing experiences, giving us the ability to compare what we do.
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