Saturday, July 07, 2007

Absurd

A new apartment building has just been inaugurated a few blocks over from us on Av. Julius Nyerere, one of the main streets in Maputo. The apartments, from what I've heard from real estate agents and seen in adverts in the paper, are nice but nothing spectacular. Most are 2 - 3 bedroom, with maybe 2 bathrooms and a service area. The big selling points are the gorgeous view of the Indian Ocean from a spacious verandah, and the fact that because the building is new, it conforms to the security standards of most local Embassies and NGOs for their program staff.

You see, if you work for one of the main development / aid / diplomacy gigs in Maputo, you aren't allowed to just live any old place. There are very specific criteria regarding bars on doors and windows, 24hr security guards, off-street parking for cars, etc. As many of the houses and buildings in Maputo are a few years (ahem, decades) old, it can be difficult to find housing that conforms to these security requirements. My friend Jenny recently was looking to move into a new place and had a terrible, months-long search before turning up a place that was not only approved by the security standards of her work, but a reasonably affordable price as well.

How much do you think a 3-bedroom apartment in the building I just described would rent for per month? I know it's hard to envision the apartments, and I personally don't know what the amenities are like inside the place, but let me put it like this. It's a new building in a good, centrally-located neighborhood; however, the area is nonetheless somewhat run-down and is a frequent location for begging and assaults (lots of Western-catering restaurants = lots of foreigners = lots of petty crime).

So, what would be your guess for renting one of these apartments (in USD)?

$800 per month?

$1,500 per month?

Nope. Keep guessing...

$2,300 per month?

Still not high enough. Rico read in the paper this morning that the rents in this building START at $3,000 per month! And that is for the most basic apartment, probably the ones without the sea-facing varandas.

Honestly, for what is being offered, this is a total rip-off.

Chalk another one up to the massive presence of foreigners and foreign organizations in Mozambique. They are so desperate for housing, there is no doubt that these apartments will all rent in a second, no questions asked.

From what we hear from friends in Angola, it is 100 times worse there. I can't even begin to imagine it...

15 comments:

QUASAR9 said...

You still getting your money's worth (though perhaps not in relation to wages)

2 or 3 bedrooms and 2 bathrooms, they don't build places like that in the uk for under £300,000 and if you want a garden and garage (or parking space too) over £400k

And sadly no view of the Indian Ocean, or any Ocean - who would believe we live on an Island surrounded by sea with more coastline than you could wisj for

Ali Ambrosio said...

~quasar9 - I know the UK, along with places in the US like San Franciso and NY, are truly absurd when it comes to real estate and value for your money.

Here, however, it's extremely complicated if not impossible for a foreigner to purchase real-estate, so you are stuck with renting.

Although I do agree that a view of the ocean is worth quite a lot!

Anonymous said...

good grief, that is unreal...i'm going to keep my mouth shut about my rent now...and we have a house! ~ruby

Safiya Outlines said...

Woah - this is very, very wrong, especially in a country where some people don't make that in a year.

I'm starting to see your point about the "Aid Industry"

Anonymous said...

It used to be like that in Harare in the early 90s. It was completely absurd for people who lived there and were normal income earners. Everything nice was rented for incredible prices to expats. Now, however, that seems to have changed.

I'd still love to come live in Moz... but not in somewhere that expensive ;)

Ali Ambrosio said...

~Ruby - I know. I thought a $600 apartment in Austin was absurd (coming from New Mexico cost of life). It's all relative...

~Safiya - Yes, it's quite distorted. Just think what could be done with the money saved, if only these organizations would insist on a market price for housing. We're talking hundreds of thousands of dollars per month, on a very conservative estimate, if every organization cut back rent for their staff by US $500 per month. What that money couldn't do in terms of programming and support for communities...

~Ash - And now, ironically, what with the situation in Zimbabwe, one can find a literal mansion for US $450 per month. We have a few clients that have stayed on in Zim, and that is one benefit...it's certainly a buyer's/renter's market.

By the way, we rent a 3-bedroom apartment just a few blocks away from this new building for slightly more than 10% of the rent they are asking. Much more reasonable deal.

Marcia Francois said...

That is absolutely ridiculous. You could live in a 5-bedroomed gorgeous house (mansion) in sandton/ bedfordview for that price here in Jhb.

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Ali Ambrosio said...

~Marcia - Good to know that prices are much more reasonable should we ever want to move to RSA one day.

Hope you are having a great week.

Annie Jeffries said...

Sounds like business as usual for profiteers. How does this effect rents for the locals?

Ali Ambrosio said...

~Annieelf - Basically Mozambicans that want to live in the buildings or areas that are "suited" for foreigners must pay the asking price. Otherwise, they can rent places for much, much less in the parts of the city that are not as central.

This is all for rent...

In terms of buying a place, there is a lottery-type system for property ownership that I don't completely understand, but it is not based on the same ridiculous prices that are offered to foreigners.

Anonymous said...

OMG! This is the price for 5 room apartments in Bucharest, in the most expensive areas, with everything you ever dreamed of inside. And it would still be very high! You can rent a villa for that price..

Well, Ali, this is the first time I can really say Bucharest is not the most expensive city to live in..

African Kelli said...

Because those governments will pay that rate. I hear you! The one expat community in Beira has a guarded commune like living area and they start at $1700 per month -- which is equally absurd.

Ali Ambrosio said...

~Alina - It's all relative!

~African Kelli - I know the compound you are talking about. One of our Brazilian friends used to live there. They are nice, but again the price is ridiculous for what you are really getting.

Anonymous said...

You are so right! It is relative. Just out of curiosity, what's the average salary there?

Unknown said...

Sounds crazy to me, although I am naive and unaware about rents in other countries... Sounds like a way to capitalize by catching people up in hype (view of the ocean) and regulations (security) to make big bucks!