Zim, Mozambique fight over land ownership - report
Featuring more than 150 of the region and country’s top real estate decision makers, the Mozamreal Property Forum takes place today (20th of June) at the Radisson Blu Hotel & Residence in Maputo.
According to MozamReal’s organiser, API Events’ managing director, Kfir Rusin, the forum is designed to unify the local market and revive the local property market by developing new insights and best practice case studies from regional and local investors, developers and public-sector policymakers.
One of the forum’s signature discussions, The Mozambique Real Estate Development Game, is designed to provide local and regional investors with expertise in local development costs, operations and more.
The expert panel includes local experts, João Catela of Hodari Mozambique, Miguel Chaves of Jat Constroi and Sérgio Martires of Betar Engenharia together with regional thought leader Christiaan Rademan of global quantity surveyor firm, RLB Pentad.
From feasibility studies; procurement; building materials and construction costs; lease agreements; project & cost management and more the panel broke ground in sharing knowledge and expertise for the revival of the real estate market and the economy.
As the lead sponsor of the event, RLB Pentad, the global firm’s unique experiences operating throughout Africa and globally have enabled them to provide in budget services across sectors and in multiple regions of Mozambique. As director Christiaan Rademan says, “We’ve built solid experience and expertise in Mozambique and Africa. As a global company with a strong presence and commitment to Africa, we’re able to use our expertise to define have consistently managed to make sure our clients remain within budget.”
Having provided turkey services to numerous projects across the retails and hospitality sectors in Mozambique; RLB Pentad’s expertise has been providing accurate and total costs for their clients which does not just include construction costs, but interest fees, travel and professional fees. As he explains, “We cost down to the knives and forks, if needed, as we did with Rani Towers.”
While, the real estate market has remained relatively compressed in Mozambique, the opportunities in Mozambique are returning says Rademan. “I go where my clients are and I am pleased that we have this leading forum today to develop new opportunities and develop partnerships with regional and local players.”
While the development of Rani Towers was a major project for RLB Pentad, the firm’s current scope of work within Mozambique is orientated retails centres and commercial offices says Rademan. “We have a number of local and foreign investors eyeing the market, and this will only increase as the LNG projects come online, and we’ll probably see more growth in the hospitality segment too in the next few years.”
“We have local developers and many South African listed property funds and others funded by foreign investors aiming to invest and develop up and down the country from Pemba, Beira, Nampula, Tete and Maputo.”
With market opportunities minimal and tenants in short supply; Rademan believes that investors with capital are aiming to build now while bricks and mortar costs are more attractive than in other African markets – despite what has been a soft market lately as referenced in Broll Property Group’s SADC Market Snippet Q1 2018 report.
The report notes that while demand for retail space remains steady for the next six months, the supply of retail supply will increase in the next six months. The increasing supply validates the bullish nature of many developers in the market continue to develop while achievable rental rates hover at around $25 per square meter and average vacancy sits at 35%.
For Rusin, the report and subsequent discussions around the real estate sector are why the event has attracted such a high percentage and calibre of foreign attendees and delegates.
“We have visitors from Kenya, South Africa, Mauritius, UAE, Zimbabwe, Botswana and more interested in pursuing opportunities across the country. The forum provides the platform to engage and unpack experiences and go beyond the data and learn from the men and women who compiled the data, as to how the market is changing and growing,” says Rusin.