Connect with us

Hi, what are you looking for?

Construction projects saturate office space market
Construction projects saturate office space market
INCREASE OF CONSTRUCTION: CBD, Gaborone

Entertainment

Construction projects saturate office space market

The market for office space remains weak due to increasing supply from completed construction developments mostly in the Gaborone Central Business District (CBD).

The recent Monetary Policy Report (MPR) states that the completion of buildings such as the Botswana Unified Revenue Services (BURS) building at the CBD has led to an increase in the supply of office space, rendering it weak.

However, the report states that despite the COVID-19 movement restrictions and generally weak demand for office space, there was some take-up of office space, although limited, at the CBD by the government which has become a major consumer, as well as by some corporates.

Given the ongoing construction projects in the area and with others in the pipeline, the supply of office space is expected to increase further.

This is expected to exert downward pressure on rentals, especially in decentralized office locations.

Advertisement. Scroll to continue reading.

Further, the outbreak of the pandemic has resulted in most companies allowing their employees to work from home, it is believed this could negatively affect the demand for office space.

While the office space is said to be weak, demand for the retail space is considered fair across all market segments, similar to the previous quarter.

The supply is expected to increase on completion of the ongoing construction of a major shopping centre in the CBD, while another one is proposed for Mogoditshane.

“In addition, other centres with good demand for retail space are Jwaneng, Lobatse, Selibe Phikwe, Maun, Francistown, Mahalapye, and Letlhakane,” says the MPR.

It is said this is because most of these locations have a few retail schemes at the planning and/or construction stage and are to be anchored by reputable supermarkets.

When it comes to industrial property, the supply of unoccupied big warehouse space is reported to have decreased, while the demand has improved.

Advertisement. Scroll to continue reading.

Meanwhile, the availability of prime location industrial space is expected to decrease going forward, given that most of the centrally located industrial land is almost fully developed and occupied.

In addition, the residential rental is said to have weakened in the fourth quarter of 2020, compared to the third quarter of 2020, due to weaker demand for both the upper and middle-end properties.

However, it is stated that the lower-end properties enjoyed a good rental market in terms of both demand and supply, despite the COVID-19 lockdowns in the second and third quarters of 2020.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Business

Business Botswana (BB) held the 5th Prosperity Africa Small Business Exporters Conference in Gaborone last week. The three-day conference, which attracted over 70 international...

Business

Friday saw the start of a powerful new partnership as Botswana Power Corporation (BPC) and Francistown College of  Technical and Vocational Education (FCTVE) joined...

Business

As part of their efforts to promote the country as a tourism hub, Cresta Marakanelo Limited (CML) sang Botswana’s praises at the Africa Travel...

Business

Health Generation adds zest to the HATAB Conference Botswana’s best juicers, Health Generation had plenty of admirers at the just ended Hospitality and Tourism...

Business

Coal mine set sights on Europe Morupule Coal Mine (MCM) are in hot pursuit of an exciting new partnership, with the coal producers in...

Business

There is a famous Chinese proverb that states life begins the day you start a garden. This certainly rings true for 41-year-old Unaswi Tafila,...

Business

Fallout from Ukraine invasion worries Minerals Minister Calling for divine intervention, Minister of Minerals and Energy, Lefoko Moagi has warned that the on-going Russia/Ukraine...

Business

Distribution company open Gabs office East Africa’s leading ICT distribution company, Red Dot has honed in on Botswana, officially opening an office in Gaborone’s...

Advertisement