By TBY | Mozambique | Jun 30, 2015
Following an influx of foreign investors, a construction boom and positive growth perspectives in the country, several companies are developing luxury real estate projects in Maputo.
Since the end of a devastating civil war in 1992, Mozambique has been in a period of gradual but intensive growth and reconstruction. In 3Q2013, Mozambique’s construction sector represented 7.8% of GDP, close to a 3% increase on the previous year. The boom in construction has been largely attributed to infrastructure projects in energy, mining, and transport sectors. In Maputo there has been a significant increase in luxury real estate development, due to rising prices and a growing middle class contributing to an increase in demand. Increasingly, Portuguese migrants have making the move to Maputo, to avoid a eurozone economy in financial crisis. In 2012, registrations at the Portuguese consulate increased by 25%. Registrations are expected to keep rising as Portuguese-style architecture and a common language entice expats, in addition to Mozambique’s noteworthy economic performance.
In May 2015 Maputo will host the third edition of MOZAMBUILD, Mozambique’s International Building Materials and Construction Technologies Fair, in partnership with the Mozambican Federation of Contractors. The conference brings together suppliers in Mozambique’s building industry, from concrete producers to aluminum and steel manufacturers, and works to offer a better understanding of the dynamics of the market in partnership with groups such as Portuguese industrial conglomerate Mota-Engil.
Mota-Engil Africa will soon embark on two $50 million joint ventures, and has already completed the 20-story Tilweni Condominium. In partnership with real estate developer Promovalor, they are also involved in the construction of the Platinum Building on Av. Julius Nyerere in central Maputo. The Platinum tower will provide luxury apartments, offices, and shops. It is “a prestigious project which will be finished on a very short timeline of 20 months,” according to Aníbal Leite, Administrator of Mota-Engil Africa. For over 20 years Mota-Engil has contributed to infrastructure and civil engineering in Mozambique including construction of the Armando Emílio Guebuza Bridge and the African Games Village.
A luxury real estate project under construction by the TOVISI company is Miloro, a 60-unit condominium in the up and coming area of Sommerschield. The community will be adjacent to Portuguese and American schools and several private hospitals. “We will be providing residents the best apartments available in the city,” says TOVISI general director Pedro Ramos. More luxury projects on the coast are estimated for completion by 2016.
DECO Group is a design and construction company responsible for the luxury complex DECO Residence, and is currently working quickly on the completion of Assos Condominiums. DECO Residence is a 23-story building holding 42 apartments, which had all been sold prior to the project’s completion. DECO Residence is; “a symbol of DECO construction,” says General Director and Member of the Board Zubeyir De‚¬irmenci. Assos Condominiums is a 45,000 sqm project that will offer 160 apartments, 12 retail shops, and two floors of parking. Assos will also provide to its residents such amenities as a rooftop pool, Turkish bath and spa, as well as a multifunctional court and children’s park. De‚¬irmenci says: “90% of the apartments will have sea views. […] The quality even exceeds that of the DECO Residence which is 5-star residence.” The project is slated for completion in June 2015.
In Sommerschield, a central area with a thriving expat community, two to three bedroom apartments currently rent for around $2,000 to $3,000. Office space in the city center is priced at roughly $40 per sqm. Although it seems that rising rents may be making it difficult for some Mozambicans to remain in central neighborhoods, new developments are aimed at high-end buyers coming in droves mainly from a prospering energy industry. Demand is high. Several thousand Mozambicans and expatriates are seeking secure and quality urban housing with reliable utilities. The International Monetary Fund forecasts robust growth for Mozambique’s economy. Prices on luxury real estate are likely to continue rising, though time will tell as the market nears possible saturation.