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.
Chris Mayer
Chris Mayer is managing editor of the Capital and Crisis and Mayer’s Special Situations newsletters. Graduating magna cum laude with a degree in finance and an MBA from the University of Maryland, he began his business career as a corporate banker. Mayer left the banking industry after ten years and signed on with Agora Financial. His book, Invest Like a Dealmaker, Secrets of a Former Banking Insider, documents his ability to analyze macro issues and micro investment opportunities to produce an exceptional long-term track record of winning ideas. In April 2012 Chris will release his newest book World Right Side Up: Investing Across Six Continents.
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