eye on africa
ABOVE Luanda’s emerging modern skyline
Water access (%)
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of mining facilities, communication infrastructure and water and drainage systems. Some of Aurecon’s projects include the Nova Vida township design, construction and project management; construction supervision for a housing development of 2 500 urban units in Ondjiva, southern Angola; and the Sonangol Headquarters; as well as transportation developments such as the design and supervision of the roads between Namibe and Lubango, and the 375km of road and bridge over the Cunene River. The tourism and leisure sector in Angola is set to grow exponentially. According to figures of the World Travel and Tourism Council (WTTC), Angola is set to become an emerging holiday spot in the next 10 years. The WTTC also expects to see an annual growth in tourism of 7,3% between now and 2024.
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The industrial market in Angola is quite healthy, with a strong demand for warehousing and manufacturing space as a result of expansion of industries related to petroleum, diamonds, brewing, textiles and construction 50
Retail market Angola’s retail market is still in its infancy, with a significant under-supply of modern, high-quality retail space. One of the country’s major malls, Belas Shopping Centre in Talatona, opened in 2007. Currently there are some noteworthy retail developments, including the development of Luanda Shopping, which forms part of the mixed-use Comandante Gika project in Alvalade (regarded as one of the biggest real estate projects in Angola); as well as Kinaxixi Shopping Centre in the Kinaxixi MXD Complex, Luanda. Proposed to open this month, Sky Gallery is Angola’s first luxury shopping centre, which will welcome high-end brands such as Prada, Gucci and Armani to the country. The centre is a Portuguese-Angolan investment of more than US$50-million and will boast four floors that connect three skyscrapers, 40 shops, 500 direct jobs and a commercial area of more than 11 000m².
Industrial and office market The industrial market in Angola is quite healthy, with a strong demand for warehousing and manufacturing space as a result of expansion of industries related to petroleum, diamonds, brewing, textiles and construction. Luanda’s key industrial areas are located mainly to the north of the city centre, around the Sonils port. Other zones of industrial property are found to the east (Viana) and to the south (Benfica). Strategically situated close to the planned international airport,
the Special Economic Zone at Viana was established in 2005 and is designed to ultimately accommodate 73 factories. The office sector is experiencing high demand in Luanda, especially from oil companies and banks. Strong improvements are required in the sector as many of the buildings need back-up power generators and water purifiers. There is also a major demand for quality office space; but there is a severe shortage of supply and occupation costs are among the highest in the world. With recent construction completions, some of the pressure has been eased, with rental coming down over the past year. The main commercial areas are the Ingombata and Baixa districts in the CBD, while secondary office areas include Maianga, Alvalade and Miramar. There has also been considerable development activity in the growing Talatona/ Luanda Sul area, which is considered the new prime commercial and residential district of Luanda.
Residential market The residential market is booming in Luanda, with the cost of living soaring well above cities around the world. According to Mercer’s Cost of Living Rankings of 214 cities, Luanda overtook Tokyo in 2013 as the world’s most expensive city for expatriates. Dominated by the ex-pat community, the residential sector in Luanda is characterised by high prices for villas and apartments; but new supply that entered the market in the past two years has ensured a decrease in prices. Based on a 2013 report by real estate firm Colliers, the total stock of office space moved past the onemillion square metres mark in 2012, with costs of US$150/m² per month. The report further indicates that a two-bedroom apartment with access to a generator, water tank and secure parking can cost between US$7 000 and US$10 000 per month. Prime property is located in central areas such as Miramar and Ingombata, as well as Talatona in the south, which provides lower-cost but high-quality housing and is popular with ex-pat families because of its international school and shopping centre. A current trend is that the middle class are looking for cheaper homes outside the city, and are moving to Chinese-built housing projects such as Kilamba Kiaxi. However, the infrastructure is underdeveloped and social housing estates stand empty.
SOUTH AFRICAN PROPERTY REVIEW
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2014/06/23 9:30 AM