Buying off-plan developments properties that are sold before they are completed—offers several potential benefits for investors and buyers.
Properties are often priced lower compared to completed properties and buyers can lock in a price before the market value increases, potentially offering significant capital gains by the time the property is completed.
Capital appreciation can be advantageous as the project progresses, where property values in the area may increase, leading to higher market values by the time the property is ready.
New construction developments typically meet the latest building codes and energy efficiency standards, which can lead to lower maintenance costs and improved comfort.
Longer-term payment plans may be offered in installments throughout the construction process, which can ease the financial burden. The final payment is usually due upon completion, allowing time to save for the last portion of the cost.
If buying as an investor, especially with off-plan properties in growing areas can provide a strong rental yield once completed.
Warranty and Guarantees often come with new builds, which provide buyers with peace of mind regarding any defects or issues that may arise in the early years of ownership.
Some regions offer tax incentives, rebates, or other financial benefits for new developments, especially those under certain conditions (e.g., energy-efficient homes).
Why Buy or Invest in New Real Estate Developments in Mozambique.
Mozambique has experienced rapid economic growth in recent years, driven by natural resource discoveries, including oil and gas reserves. The country has a growing middle class and an expanding economy, creating a demand for both residential and commercial real estate.
Mozambique is rich in natural resources, including coal, gas, and mineral deposits, attracting foreign investment and boosting local economic activity. As a result, there is increasing demand for infrastructure and housing to accommodate the growing workforce and corporate entities involved in these sectors.
The government has been investing in large-scale infrastructure projects, such as roads, airports, and ports, which increase the accessibility and appeal of various regions for both business and residential developments. A more connected country is likely to drive demand for property in urban and peri-urban areas.
Mozambique offers an opportunity for investors looking to diversify their portfolios. As the country is still considered emerging, the potential for high returns exists as long as risks are well-managed. Additionally, real estate in Mozambique can offer diversification away from traditional markets, such as Europe or North America.
The cost of real estate in Mozambique, particularly compared to more mature African markets like South Africa or Kenya, can be lower, allowing investors to acquire more property for less capital. This can lead to significant capital appreciation over time, especially in prime areas where demand is increasing.
