Angola: Angolan government announces campaign to combat real estate speculation

23 June 2008

Luanda, Angola, 23 June – The Angolan government “in the short term” plans to apply measures to combat real estate speculation, particularly in Luanda, which worsens the life of poorer sections of the population, said the deputy minister for Urbanism and the Environment.

During the Angolan Real Estate, Urbanism and Architecture Fórum, Mota Liz, cited by newspaper Jornal de Angola, said that combating real estate speculation required legal mechanisms and a housing encouragement programme, so that people “can have access to houses at lower prices.”

At the same time, Luanda plans to “create a tax system that can be applied to the real estate sector according to type and location, time of construction, accessibility to services and equipment,” said the deputy minister.

With the measures, he added, the government would establish conditions to revert the current “unsustainable” trend.

According to a recent study from real estate consultant Worx, rental values in the Angolan capital “reached record values for the African continent,” of US$12,000 for a five-bedroom home.

The rise in prices has been driven by increased demand from companies and ex-patriots, due to the country’s economic growth, together with the lack of quality accommodation and a trend for focus on the capital. (macauhub)