Giant cranes tower over the Maputo skyline, helping raise up multi-story luxury hotels, office and apartment buildings between the ruins of colonial-era structures. This is tangible evidence of Mozambique’s amazing economic growth, which has averaged close to 8 percent a year for the past 14 years. But it’s expensive to develop new property in Mozambique. Building materials must often be imported. They’re costly and hard to come by. In isolated regions, developers often have to build basic infrastructure from scratch such as drainage and water lines. It’s risky business, according to a report in African Business Magazine.
An informal AFKInsider survey of 10 existing Maputo hotels and lodgings showed that half of them were under construction for expansion toward the end of 2014. The hotels ranged in size and scope from a 125-room, full service hotel to a five-room guest house. “Business is good,” said Amilcar Ferreira, who helps his parents run the six-room Palmeira’s Guest House on Maputo’s Patrice Lumumba. So good that the family plans to expand to 10 or 12 rooms. “Now that we’ve discovered natural resources, all the hotels are fully booked year round,” said Ferreira. In addition to helping run the family guest house, Ferreira works as an auditor consultant for professional services firm Deloitte.
Land in Maputo’s business district is scarce and expensive, with the focus largely on building multipurpose high rises, according to a report in African Business Magazine. For example, a $1.16-billion project is being built on one of Maputo’s major streets, Avenida 25 de Setembro, that will include a hotel, shopping centre, offices and homes. The Afrin Prestige on Rua Ngungunyane was under renovation in 2014 to give the hotel more than 50 percent added capacity – growing from 99 rooms to 155. It’s conference facilities will grow too to accommodate groups such as the Organization of Portuguese Speaking Countries (CPLC).
Conference facilities are in heavy demand in Maputo and conferences help occupancy, said Afrin Prestige General Manager José Almeida in an interview with AFK Insider. Mozambique has two Afrin Prestige hotels and two more are planned – one in Nampula, third largest city in Mozambique, and one in the coastal town of Villanculo.
“Tourism is a good investment,” confirmed Almeida.
So, why invest in Bilene?
Bilene, already the favourite beach resort escape for Maputo’s wealthy residents, is just under a 3 hour drive north from Maputo and is hence close enough to benefit from the business and leisure travel boom being experienced by Mozambique’s capital city. The San Martinho Beach Club™, which offers both sectional title and timeshare leisure property investment options, is the ideal investment vehicle for you to personally capitalise from the country’s booming tourism sector.