Unlocking Opportunities: Namibia emerges as a prime destination for South African property investors
Namibia is a beautiful and diverse country with a stable political and economic climate, making it a prime destination for property investment. Thanks to its stable political climate and resilient economy, Namibia is a solid option for real estate investment. With a diversified economic structure that includes mining, agriculture, and tourism, it promises sustainable growth.
South Africans are particularly drawn to Namibia due to its close proximity, similar culture, and affordable property prices. Schantal Teichmann, franchisee of Just Property Windhoek and Just Property Swakopmund, shares her insights into why investing in Namibian property is a good idea for South Africans.
Four top reasons to invest in property in Namibia
- Strong rental demand
Namibiahas a growing population and a thriving tourism industry, which meansthere is a high demand for rental properties.
- Capital appreciation
Property prices in Namibia have been rising steadily in recent years and are expected to continue to do so. According to “The Brief’ website, Namibia's property market has witnessed a staggering 1,258% surge in average housing prices between January 1990 and March 2023.
While the coastal and central house prices had diverged between 2016 and 2022, recent data from 1Q2023 indicates a narrowing gap, with coastal houses now the most expensive (averaging N$1.6 million), followed by the central area (N$1.5 million), the North (N$869,000), and the South (N$795,000).
- Tax benefits
Namibia has several tax benefits for property investors, such as no capital gains tax or inheritance tax. According to Henley and Partners, a leader in investment and citizenship “foreign residents are generally only taxed on the income they generate in the country.
What is more, tax rates are relatively competitive compared with many other emerging markets, particularly with neighbouring countries such as South Africa. The top rate of income tax in Namibia is a modest 37%, but perhaps most notably there are no capital gains, estate, gift, inheritance, or net wealth/worth taxes.”
- Lifestyle-benefits
Namibia offers a high quality of life, with stunning scenery, friendly people, and a variety of outdoor activities to enjoy.
If you are a South African interested in investing in property in Namibia, the process is relatively straightforward as long as the property in question doesn't fall under the category of agricultural land. You will need to obtain a non-resident buyer's permit, which can be done through the Namibian Ministry of Home Affairs. Once you have your permit, you can start looking for properties and making offers.
Just Property Windhoek is a leading real estate agency in Namibia with a team of experienced and knowledgeable agents who can help you find the perfect property for your investment needs.
Overall, property investment in Namibia is a wise choice for South Africans looking for a stable and profitable investment. With its strong rental demand, capital appreciation potential, and tax benefits, Namibia offers several advantages for property investors.
Frequently asked questions
Schantal, has lived in Namibia her entire life. When she saw an opening for a company that could provide exclusive letting and administrative services, she started Just Property Windhoek in 2005 and later opened Just Property Swakopmund in 2021.
“My love for people motivated me to help people find and manage investments so that they could grow their wealth through property,” she says. Below, she answers five questions that South Africans frequently ask her.
How can South Africans buy property in Namibia?
South Africans can buy property in Namibia through Just Property. We have two teams of experienced and knowledgeable agents who can help you find the perfect property for your investment needs, whether that be a home purchase, investment property, or rental property management.
Just Property is a leading real estate agency in Namibia, with a team of experienced and knowledgeable agents who are passionate about helping our clients achieve their property goals.
Main reasons why are South Africans buying property in Namibia?
- Political and economic stability
Namibia is a politically and economically stable country, with a strong democracy and a growing economy.
- Close proximity
Namibia is located just a short flight from South Africa, making it an ideal destination for holidays and second homes.
- Similar culture
Namibia has a similar culture to South Africa, with a diverse population and a relaxed lifestyle.
- Affordable property prices
Property prices in Namibia are generally more affordable than in South Africa, making it a good value-for-money investment.
Finding the right property
Windhoek is the capital of Namibia and the epicenter of all commercial trading. It is a modern and vibrant city with a lot to offer residents and visitors alike. Windhoek is also a great place to invest in property.
The city has a growing population and a strong economy, which is driving up demand for rental properties. Additionally, the Namibian government is investing heavily in infrastructure development in Windhoek, which is further boosting the property market. The type of property will depend on each client’s individual needs and budget.
The process for purchasing property in Namibia is fairly straightforward for non-residents. As long as the property in question doesn't fall under the category of agricultural land most of property ownerships are freehold. Negotiations are always conducted within the listed asking price in Namibian dollar and South Africa's rand is also accepted as a form of currency in keeping with the exchange rate.
The first thing you need to do as a potential buyer is to get a good conveyancer. You will be represented by them and they will interact with the real estate agent behind the listing. Your conveyancer will then execute a Deed of Transfer for the purchase and the exciting journey commences!
Namibian Residence by Investment Programme
The Namibian government is also actively seeking foreign investment to boost the country’s economic growth and diversify the economy. The programme provides numerous opportunities for international investors seeking a foothold and growth on the African continent, including tax incentives, financing, and a one-stop bureau service for international companies.
According to New World Wealth’s December 2022 statistics, Namibia holds USD 26 billion in total investable wealth. The average wealth of a resident of Namibia (wealth per capita) is USD 10,050, ranking as the third highest in Africa after Mauritius and South Africa. The nation is home to around 2,100 high-net-worth individuals and three centi-millionaires (with wealth of USD 100 million or more).
Group Head of Private Clients at Henley & Partners, Dominic Volek says, for a minimum real estate investment of USD 316,000 in the new luxury golf and eco-friendly President’s Links Estate in Walvis Bay, successful investors will receive a five-year, renewable work permit which gives them the right to live, do business, and study in Namibia.
The total private wealth currently held on the African continent is USD 2.1 trillion and is expected to rise by 38% over the next 10 years, according to the Africa Wealth Report, published by Henley & Partners in partnership with New World Wealth.
Namibia is expected to be one of Africa’s fastest growing markets going forward, with high-net-worth individual (those with wealth of USD 1 million or more) growth of over 60% forecast for the next decade (until 2032).
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