Angola: Study concludes that Luanda needs further 1 million square metres of office space

12 May 2009

Luanda, Angola, 12 May – The added availability of real estate in Luanda over the last 12 months, has led to a fall in the price of housing, but has yet to have a positive effect on the price of offices, according to a study from consultants ProPrime and Progest Angola.

There is no available office space in Luanda at the moment, which, together with a rise in demand due to the growth of the Angolan economy, which has taken businesspeople from all over the world to the Angolan capital, has led to a rise in prices.

In the “2009 Luanda Real Estate Market Survey” ProPrime estimated that the “need for offices in Luanda is likely to be around 1 million square metres.”

Downtown Luanda, the “city’s business centre par excellence” is the most expensive area in this segment. The price for one square metres of office space currently stands at US$11,647, whilst in the areas of Benfica and Talatona, the second most expensive, the price is around US$8,333. The price per square metre of office space on the outskirts of downtown Luanda is lower at US$6,947.

Prices fall by almost half when dealing with second-hand spaces. In downtown Luanda, the average unit price per square metre is aroudn US$6,600, which represents na average rental income per square metre of US$100.

In Talatona and Benfica there are second-hand spaces available for rental at US$110 and, in peripheral areas you can find offices at US$75 per square metre, according to Pro Prime and Progest Angola.

In the housing segment the study concluded that the fall in prices had been the result of increased construction.

Despite the progress seen, there remains a significant imbalance between supply and demand and a scenario of high prices, which makes Luanda one of the most expensive cities in the world. (macauhub)