São Tomé and Príncipe’s real estate market has been growing due to several factors. The rise in tourism has also stimulated demand for various housing typologies, including apartments. The government has identified tourism and related sectors as priority areas for investment, offering incentives through the National Investment Agency (ANIP) Investment Promotion Agency São Tomé and Príncipe
Over the years, this demand has contributed to rising prices of apartment real estate, particularly in the capital city.
Average Property Prices
Newly built 2-bedroom luxury apartments in Vila Maria range between Db11.4 million and Db15.3 million.
In small village towns with relatively old properties, the sale price of a two bedroom house ranges between Db858 834 (US$37 501) and Db1.7 million (US$74 231), while a three bedroom house sells for up to Db3.8 million (US$165 929).
In the rental market, monthly rentals range between Db16 933 (US$739) for a two bedroom house and Db11 045 (US$482) for a three bedroom house located 10 minutes from the city of São Tomé.
Property Registration
The General Directorate of Registries and Notaries under the Ministry of Justice is responsible for maintaining the land, commercial and movable property registries. São Tomé and Príncipe has a deeds and title registry, and there are eight procedures involved in registering a property which is slightly higher than the Sub-Saharan average of six procedures.
Registering a property in the country takes 52 days and costs 10.2% of the property value.
Foreigners
Foreigners are allowed to own property in São Tomé and Príncipe, based on general investment laws, with no specific restrictions on land ownership for foreigners, though processes may involve registering with a notary and the land registry, which can be time-consuming. Investors are advised to hire local lawyers or real estate agents to navigate the process, and there might be restrictions on certain types of land, such as agricultural or protected areas, requiring due diligence.
Real Estate
The high potential investment sectors include:
- Tourism-related Properties:
- Hotels and Resorts: Developing or investing in hotels and resorts, especially in coastal areas like Tofo Beach and on Príncipe Island, where luxury developments are in demand. For example, the Pestana São Tomé Hotel & Convention Center is a notable existing project, indicating market potential.
- Vacation Homes and Short-term Rentals: Investing in properties for rental on platforms like Airbnb, catering to tourists seeking unique experiences, particularly in natural settings.
- Eco-lodges: Developing sustainable tourism accommodations in natural areas like Obo National Park, appealing to eco-conscious travelers.
- Residential Developments:
- Building apartments or houses in São Tomé city to meet local housing demand, potentially offering long-term rental income or capital gains as urbanization continues.
- Developing affordable housing projects, supported by government initiatives to improve living conditions.
- Commercial Properties:
- Leasing or owning office spaces and retail outlets in business districts, supporting the growing services sector, particularly finance and technology firms.
Best Locations
The best places to buy property in Sao tome and Principe are
- Príncipe Island: Known for its untouched nature, it is ideal for luxury resorts and high-end properties, with existing developments like the Sundy Praia Resort indicating market demand.
- São Tomé City: Offers opportunities for residential and commercial real estate development, given the urban housing needs and growing services sector.
- Coastal Areas: Suitable for beachfront properties and tourism developments, particularly around Tofo Beach, enhancing the appeal for vacation homes and resorts.