Property opportunities abound in eSwatini

Property opportunities abound in eSwatini

Category International

The Kingdom of eSwatini is regarded as a little gem in Africa with abundant natural scenery and wildlife, stunning casinos, golfing and wildlife including the Big 5 offering, and a variety of property opportunities in the market, both residential and commercial.

The eSwatini economy
From an economic perspective, eSwatini is not only bordered primarily by South Africa with only Mozambique to the East, but also depends on South Africa for most of its imports and exports. The eSwatini currency is also pegged to the South African rand.

The economy is diverse and ranges from agriculture and forestry to mining, manufacturing, government and other services, and tourism. After contracting in 2020, it rebounded strongly in 2021 with GDP growth of around 7.9%.

Due to various influences including a slowing in the SA and global economy, growth has since slowed to an expected 1.1% according to the World Bank.

Inflation picked up from around the second quarter of 2022, driven by food and transport costs and a weakening of the currency. Consequently, the Central Bank increased the repo rate with the lending rate now standing at 10.25%. Annual average inflation for 2022 and 2023 are forecasted at 4.71% and 4.87% respectively.

Tourism is a big drawcard
Tourism contributes around 6.9% of the total GDP and contributed growth in employment of around 2.4% to 2.7% according to the World Travel and Tourism Council Report of 2018.

Tourism rebounded from the lows during the two-year Covid-19 pandemic period. The country has an active tourism programme aimed at attracting visitors. Aside from the wildlife, golfing, hotels and casinos, there are also various festivals which attract tourists. These include the annual Umhlanga Reed Dance Festival which lasts for a week in September, various trail runs, cycling and mountain biking and so on.

The property market is packed with opportunities
The country has a diverse property market comprising the domestic market as well as some foreign investors in certain areas.

The residential market remains active mostly below E2 million for houses and below E500,000 for vacant land. Properties at the higher end, tend to take much longer to sell, and if overpriced, are unlikely to sell. In the current market, it might be best for those sellers to take their property off the market for the time being.

The rental market has also improved notably since the pandemic. There is always demand and a need for stock, offering opportunities for investors and landlords. The busiest sector is in the monthly price band between E4,000 and E10,000. This also offers potential for developers, especially in the Mbabane Manzini Corridor.

The return of expats boosted the demand for houses in the higher price bands of E15,000 to E25,000/month range, generally in the Mbabane and Ezulwini areas. Here too, there is always a shortage of rental stock presenting opportunities for investors/landlords.

Commercial property opportunities
There is a mix of opportunities available for various business sectors, from offices and warehousing space to restaurants and guest houses.

Seeff eSwatini is ideally placed to assist with all your property needs, from sales to rentals, both commercial and residential. We currently have an excellent choice of property on the market.

Visit https://www.seeff.com/branches/eswatini/5782/ for more information.

Author: Gina Meintjes