10/15/09 Dubai, UAE
Angola was one of the most fascinating stories of the real estate expo we attended in Dubai.
Ridge Solutions, the biggest developer in Angola, had a big exhibition near the front of the hall with a Formula One race car to grab your attention. Turns out the story in Angola is kind of intriguing.
After a long civil war, Angola found peace in 2002 and has since become one of the world’s fastest growing economies. According to the IMF, Angola’s economy grew 16% last year. A natural resource boom — especially in oil and diamonds — is driving development in the capital city of Luanda.
Hard as it is to believe, this has made Luanda one of the most expensive cities in the world. A basic apartment can cost you about $15,000 per month.
As usually happens, there is an infrastructure boom in its wake — a building bonanza in everything from sewer systems to roads. There is also a nascent agriculture boom. Ridge, for instance, is also building a dairy farm and laying the groundwork so the country can grow fruits, wheat and corn.
So you see, bubbles can alight nearly anywhere.
Sign Up for The Daily Reckoning e-letter and receive a chapter from the new Financial Reckoning Day... FREE!
We Value Your Privacy.
