INTRODUCTION
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REIB in the Property Industry
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REIB and REAC in facilitating CREDIBLE PROPERTY ADVISORY SERVICES
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An overview of Botswana’s Property Market
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The Topic Models & Strategies: Investing in Property & Infrastructure within the Greater Francistown &
Neighbouring Districts
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Case Study: The Brazilian City of Curitiba...probably the most livable city in the World!
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SLIM: Strategic Land Investment Model by the Prince’s Foundation for the Built Environment
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2014 Emerging & Frontier Markets: Assessing Risk & Opportunity
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REIB IN THE PROPERTY INDUSTRY
REAL ESTATE INSTITUTE OF BOTSWANA : an association of real estate professionals
in Botswana . Qualification is determined through education and examination to
determine that one is well versed on industry knowledge and ethical practice.
Categories: Estate Agents , Property Managers, Valuers and Auctioneers
Membership : Student Members, Probationer members, Full members
Members are governed by the REIB HANDBOOK, and regulated by REAC
REAL ESTATE ADVISORY COUNCIL
- Regulatory body of the Real Estate Industry established by the Real Estate
Professionals Act 2003
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Full members of REIB are eligible for registration
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ALL PROPERTY PROFESSIONALS PRACTICING IN BOTSWANA MUST BE
REGISTERED WITH REAC.
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REIB AND REAC IN FACILITATING
PROFESSIONAL ADVISE TO BATSWANA
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REIB MEMBERSHIP
Estate Agency :
certificate in Real Estate , 1 year Probation , Examination
Valuation, Property Management, Auctioneering :
Degree in Real Estate , 2 Years Probation , Examination
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REIB Membership Cards
REAC Membership Certificates
REIB PROFESSIONAL HAND BOOK
- Real Estate Professionals Act
- Code of Conduct and Ethics
- How professionals are expected to deal with clients
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Valuation Standards Committee
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REIB AND REAC IN FACILITATING
PROFESSIONAL ADVISE TO BATSWANA
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Real Estate professionals are the Stewards of your Assets
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They have been adequately educated , equipped to provide professional advise
to Batswana
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They belong to a professional association which monitors their code of conduct
and ensures that they are in touch with industry trends and dynamics
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The Real Estate Advisory Council is a regulatory body constituted by law and
armed to ensure that each professional registered complies with the law.
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A sufficiently qualified and regulated industry to serve Batswana
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BOTSWANA PROPERTY MARKET : OVERVIEW
Who Owns Botswana
Household income
Mortgage growth
Housing Prices
Building Costs
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BOTSWANA PROPERTY MARKET : OWNERSHIP
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BOTSWANA PROPERTY MARKET – HOUSEHOLD INCOME
not specified
Diplomats
Volutary work
Own Business without staff
Own Business with staff
Private Households
NGO's
Private Sector
Parastatals
Local Govt
Central Government
Family Business
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
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35.00%
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BOTSWANA PROPERTY MARKET – HOUSEHOLD INCOME
Employment
Volunteers
2%
not specified
10%
Govt,Parastatals, NGO
15%
Self made businesses
42%
Private Sector
31%
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BACK TO THE TOPIC FOR TODAY!
Models & Strategies for Investing in Property & Infrastructure Development within the
Greater Francistown area: How it will help transform the landscape of the City of
Francistown and its neighbouring districts.
One can be forgiven for thinking we want:
A beautiful community,
A long lasting landscape, and
Healthy for the people and the planet!
Real transformation that also has to be sustainable!
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CASE STUDY: CURITIBA, BRAZIL
Apparently: this may be the most livable city in the world! It has become the
international model for sustainable development because it put its people first and
plans in a strategic and integrated way. They call it ‘a model ecological people-centred
city’.
A study by ICLEI-Local Governments for Sustainability (an Internationál Organisation
of more than 875 cities, towns and counties) says….that Strategic and integrated
urban planning “is what underpins the individual projects system-wide that improve
the environment, cut pollution and waste, and make the quality of life in the city
better,”.
“The result of the strategy--which put people at the center and emphasized integrated
planning--is that the city has become a showcase of ecological and humane
urbanism, with ongoing improvements over the past 38 years to social, economic and
environmental conditions for its residents.”
This was started by the then Mayor in the 1970 and 1980s. The City is much older.
This information was obtained from its website.
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CURITIBA KEY POINTS
Transportation: the Public Transportation Integrated Network maintains 2,100 buses that transport 2.04 million
passengers each workday along 385 different lines that cover the city and surrounding regions. 5,000 bus stops, 351 tubestations and 29 integrating terminals. While the population has doubled since 1974 and Curitiba has the most car owners
per capita of any Brazilian city, auto traffic has declined by 30%, and Curitiba has Brazil’s lowest rates of ambient pollution
and per capita gas consumption. Curitiba’s system.
Waste Disposal: Since 1989, when Curitiba became the first city in Brazil to introduce wide-spread separation and
recycling of domestic waste, its recyclers have separated 419,000 tons – enough to fill 1,200 20-storey buildings. Now 70%
of the city's trash is recycled, with sorting into organic and inorganic waste done by residents at home and picked up from
the curb by a fleet of brightly coloured trucks. Recycling is done at a plant (itself made from recycled materials) by
previously unemployed people including the homeless and recovering alcoholics. Paper recycling alone saves the equivalent
of 1,200 trees a day. Recovered materials are sold to local industries, and the proceeds used to fund social programs.
Green Exchange: Poor residents in 62 neighbourhoods unreachable by truck have been able to bring their waste
to neighborhood centers, where they have exchanged 11,000 tons of garbage for nearly a million bus tokens and 1,200
tons of food since 1991; currently, 7,000 people benefit from about 44 tons of food annual, through 78 exchange points. In
the past three years, more than 100 schools have traded 200 tons of garbage for 1.9 million notebooks. The program
improves the diet of the poor and supports small local farmers.
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MOST LIVABLE CITY….
Green Space: When the national government was distributing flood control funding in the 1970s, the city used the funds to buy up va cant
land and create a network of 30 parks that include lakes created by damming rivers. Now the city has an astounding 51 square
meters of green space per person as well as an effective flood control system. The city also has dozens of squares, playgrounds,
and gardens; 200 kilometers of bike paths; and 1.5 million trees planted along streets by volunteers. Builders get tax breaks if
their projects include green space. Land around the parks has increased in value, bringing the city higher tax revenues.
Cultural Heritage: Many of the city's buildings are "recycled" and retired buses are often used as mobile schools or offices. A flooded
quarry was turned into the Wire Opera House inside two months, and another into the Free University of the Environment, which
educates people on ecological issues. The refuse damp became a botanical garden with a duck pond, French parterres and a
classic Victorian greenhouse; an old gunpowder storage facility was transformed into the cherished Teatro do Paiol; a glue plant
became the children's center; and an old trolley on the first pedestrian mall in the region, Rua Quinze, became a free babysitting
center for shoppers. The mayor called it “urban acupuncture” that energized the development process.
Downtown areas were transformed into pedestrian streets, including a 24-hour mall with shops, restaurants and cafes, and a street of
flowers with gardens tended by street kids. The “sol criado” system finances restoration of historical buildings, creates green
areas, and supports social housing. The city’s zoning plan sets two standards for the number of floors that can be built in e ach
zone – normal, and maximum; building the maximum requires buying the difference in the “sol criado” market by providing funds
to restore an historical building, create a nature park, or build social housing.
Housing: Since 1990, the Municipal Housing Fund has been providing financial support to housing for lower income populations. Af ter
national housing finance collapsed in 1985, just as people from the countryside poured into Curitiba, the city’s public housing
program bought one of the few remaining large plots of land, Novo Bairro, as home for 50,000 families. While landowners built the
houses themselves, each received a pair of trees and an hour’s consultation with an architect to help them develop their plan.
COHAB also built Technology Street, an avenue of 24 homes in the centre of Novo Bairro, each built using different construction
techniques.
Economy and Jobs: In the early 1970s, when Brazil was welcoming industry with open arms, Curitiba accepted only non-polluters and
constructed an industrial district with so much green space that it was derided as a “golf course” until it filled up with ma jor
businesses while its counterparts in other Latin American cities flagged. The city's 30-year economic growth rate is 7.1%, higher
than the national average of 4.2%, and per capita income is 66% higher than the Brazilian average. Between 1975 and 1995,
Curitiba’s domestic product grew by some 75% more than the entire State of Paraná, and 48% more than Brazil as a whole. In
1994, tourism generated US$280 million, 4% of the city's net income
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CURITIBA, BRAZIL
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A STRATEGIC LAND INVESTMENT MODEL (SLIM)
Housing markets keep collapsing, exposing cracks in the larger economy and family
budgets. Shelter is both a source of wealth and debt for most families. This has created a
structural volatility in the economy. Is property, seen for a very long time as a long term
asset, now a commodity? Families are now seeing housing as an investments, not just as
shelter and security. Now families buy to let, i.e for investment purposes despite in some
cases the lack of underlying demand. This boom and bust scenario suggests a failed
model.
A report by The Prince’s Foundation For the Built Environment proposes a way forward. In
2007, in their other report ‘Valuing Sustainable Urbanism’, the Prince’s Foundation found
substantial additional value accruing in the short and long term from mixed use, mixed
income, walkable neighbourhood scale developments. The report found that such
developments created stronger social capital and enhanced the natural environment. SLIM
prescriobes a model of ‘residential growth that fully considers the potential for long-term
value creation through master-planning, infrastructure delivery, the creation of sense of
place, and careful estate management’.
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SLIM…
The landowner comes into the deal as a co-partner with the promoter and the
investor. The land is used as equity investment and eases cash flow. The other benefit
is derived from the phased sale of land to capture values as they rise. This is an
investments dimension that unlocks value over the long term and is in sharp contrast
to the standard model where promoters need to sell housing units and excess land to
recoup their investment.
There are many innovative partnerships emerging but this might just work for
Francistown which is bordered by privately held land parcles that are proving too
expensive for government to buy from present owners.
This model requires collaboration of landowners, promoters, investors and local
authorities. It presents an opportunity for a win-win situation which creates value for
everyone including the home buying public by delivering places that are diverse,
interesting, lively, prosperous and sustainable!
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NEW APPROACHES TO RESIDENTIAL DELIVERY
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Niche market developers who take a long term quality driven approach to housing
that can be truly called sustainable urbanism must be encouraged in Botswana.
These are the landowners, long term land investors, commercial developers and
regeneration specialists.
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Upfront investment in master planning, design and intensive project management
is essential in order to optimise gains in the longer term.
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Required skills: master planning, optimising land parcels and phasing schemes
and mechanisms for long term estate management.
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EMERGING FRONTIER MARKETS
In 2014 Cushman & Wakefield, a US based company assessed risk & opportunity in
acquiring office space in 42 countries, considered emerging. Botswana was ranked
Number 1, considered most efficient and transparent market.
This is a call for investors to take a serious look at Francistown and implement new
ways of delivery property and infrastructure for the long term sustainability of the City.
It has taken the City of Curitiba 38 years to achieve the sense of being the most
livable city in the world, so it has to be worked at!
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THE VALUE OF PROPERTY OWNERSHIP
“It’s
tangible, it’s solid, it’s beautiful. It’s artistic, from my
standpoint, and I just love real estate.” – Donald Trump
Its Tangible:
you can see it as a physical asset and you can see straight
away its benefit
Its Solid :
Its Beautiful:
you can from the get go determine its use to you
Its Artistic :
a reflection of design transformed from paper to life
one of the most creative investment forms with no limitations
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THE VALUE OF PROPERTY OWNERSHIP
The value of real estate = Land + Developments
The value of Real Estate = Capital Growth and Income
The value of Real Estate = Heritage
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THE VALUE OF PROPERTY OWNERSHIP
The Value of Real Estate Ownership =
THE OWNERSHIP OF AN ASSET WHICH IS
DIMINISHING IN SIZE, INCREASING IN
DEMAND, AND WILL ALWAYS BE REQUIRED AS
A FOUNDATION OF ANY ECONOMIC ACTIVITY!
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REAL ESTATE has produced the
HIGHEST number of Billionaires in
the world, and those that were
produced by music and film,
maintain their wealth through real
estate.
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THE ROLE OF EDUCATION IN SKILLING
BATSWANA ON MATTERS OF HOMEOWNERSHIP
AND THE PROPERTY MARKET
Next in Importance to FREEDOM and
JUSTICE is popular EDUCATION, without
which neither freedom nor justice can
be permanently maintained .
James A. Garfield
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IN CONCLUSION
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REAL ESTATE is a very important asset that we have in Botswana, the ratio of
person to Land is the highest in the world.
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We are the only country that is allocated land Free or at a subsidized rate
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In comparison to other Countries in Africa, our land ownership legislation is
rather advanced however we do not know it
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We have a regulated real estate professional body but we still use unregistered
members for our transactions, our institutions create sub-regulatory measures
that do not speak to professionalism or quality of work.
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We are not using the tools that we have to KNOW and understand our PROPERTY
ASSET.
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We are speculative on things we need not speculate.
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