Angolans have just about got used to the fact that their country is in the middle of an oil boom, only to find out that their capital Luanda is in the middle of a property boom. The Financial Times reports that prime office space in the centre of Luanda with views onto the Atlantic Ocean sells for $6,500 per square metre. This puts Luanda in the same league as historically expensive cities like Manhattan, Hong Kong and London.

The report highlights that sky rocketing prices are not just in commercial office prices but have spread to the high end of the residential market with flats renting for between $12,000 and $15,000 a month, which put them head and shoulder over cites like Moscow where a luxurious property would rent for $4,200 a month, London ($4000), Seoul ($3500) and Tokyo($4250).

The reasons are not far to see, Luanda with a population of five million is struggling to make the transition from a war weary capital to the main city of one of the world’s fastest growing economies. The influx of Angolans seeking their share of their countries new found wealth and expatriates lured by dreams of tax free mega salaries has pushed demand for property sky high with the construction industry struggling to overcome years of neglect and under investment.

There have been some major residential projects such as those in the Luanda Sul project to the south of the capital, but a serious concerted effort is needed if the property crisis is not to impair Angola’s economic recovery.