The real estate market in Eswatini has over the years experienced both growth and serious challenges.
While the sector continues to attract investors and create opportunities for emaSwati seeking homes and property investments, it has also been riddled with fraudulent activities and unethical practices that have left many consumers vulnerable.
Cases of emaSwati being scammed into purchasing non-existent properties, paying rent for houses already occupied, or dealing with individuals falsely posing as property agents on social media platforms have become increasingly common. As the property sector grows, the need for a clear, enforceable and properly regulated framework has become more urgent.
This is where the Ministry of Housing and Urban Development is stepping in to ensure greater compliance and professionalism within the industry.
The ministry’s Senior Housing Officer, Samkeliso Makhubu, outlined the strides the ministry has taken and the processes currently underway to regulate the sector and strengthen legislation governing real estate activities in Eswatini.
Makhubu explained that Eswatini currently does not have a single comprehensive statute that exclusively governs the real estate sector.
“Currently, there is no comprehensive single statute that exclusively governs real estate in Eswatini.
“As a result, there are several instruments and pieces of legislation that govern the real estate sector in the kingdom and there are aspects of real estate activities that may currently be guided by general contract law, property law principles, business licensing requirements and other related laws,” he said.
However, he revealed that the ministry is in the process of formulating the Real Estate Agents Bill, which is aimed at regulating the practice of real estate agents and the registration of professionals operating within the sector.
“Specifically, the Bill provides for:
- The registration and licensing of real estate agents
- The establishment of a regulatory authority (the Real Estate Agents Board)
- Professional standards and ethical rules for real estate agents
- Disciplinary procedures
- Compliance to anti money laundering laws
“Measures aimed at protecting consumers and promoting professionalism within the sector,” said Makhubu.
He added that the development of the Bill represents an important step towards strengthening governance, accountability and public confidence within the property sector.
“Once the Bill has gone through all the consultation process, it will then be passed as an Act,” he said.
Makhubu further clarified who qualifies as a real estate agent under the proposed legislation, stating that this would refer to a natural or juristic person holding a current certificate of registration and carrying out a real estate transaction by:
Negotiating the sale, exchange, purchase or lease of real estate
Directing or assisting in the procuring of prospects, or the negotiation or closing of transactions which result in the sale, exchange, purchase or lease of real estate
Taking part in the procuring of sellers, purchasers, lessors, lessees, landlords or tenants of real estate
Engaging in real estate management, either as a consultant or as an agent
Advertising or holding oneself out as being engaged in the business of negotiating the sale, exchange, purchase or lease of real estate
Receiving a commission for a real estate transaction, either personally, by a partner, employee or agent
On the key areas covered by the legislation, Makhubu said the ministry’s immediate regulatory focus is on the conduct and operation of real estate agents through the proposed Bill.
“The Bill covers several key areas to ensure integrity and professionalism in the property sector,” he explained.
“Under this legislation, all persons engaging in real estate agency work will be required to register with the Real Estate Agents Board. Each application for registration will undergo rigorous scrutiny before a certificate of registration is issued, ensuring that only qualified and ethical agents are permitted to operate in Eswatini,” he said.
He further noted that the Bill places strong emphasis on compliance with Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) requirements.
“This is important because the real estate sector is internationally recognised as vulnerable to money laundering and illicit financial activities due to the high value of property transactions,” he said.
Makhubu explained that real estate agents will increasingly be expected to play a gatekeeping role through:
- Conducting customer due diligence
- Verifying client identities
- Maintaining transaction records
- Reporting suspicious transactions
Complying with national AML/CFT legislation and reporting obligations
“Accordingly, the development of the Bill demonstrates Eswatini’s broader commitment to improving governance, professionalism and legal certainty within the property sector. This framework strengthens consumer protection, enhances accountability in property transactions and promotes trust in the sector,” he added.
He also highlighted that the ministry already uses other legislative instruments such as the Human Settlements Authority Act, 1988, the Sectional Titles Act, 2003 and the Sectional Titles Regulations, 2020 to regulate aspects of property development and real estate activities in the country.
“These measures help ensure that real estate developments are carried out lawfully and in accordance with national legislation and local by-laws of urban local governments,” he said.
Makhubu stressed that having clear and enforceable legislation is critical as the sector continues to grow and attract more investors.
“It is important for Eswatini to have clear and enforceable real estate legislation framework, particularly the Real Estate Agents Bill, because the sector has grown rapidly, with many unqualified individuals entering the sector and presenting themselves as real estate agents in the absence of a formal framework,” he said.
He warned that the absence of proper oversight has exposed consumers to unethical practices, financial misconduct and fraud.
“This lack of oversight has left the profession vulnerable to:
- Unethical practices
- Financial misconduct
- Consumer exploitation
“Without the necessary legal safeguards, clients and the public have been exposed to fraudulent schemes, resulting in significant financial losses and, in some cases, loss of property,” he added.
Makhubu said a strong regulatory framework was not only about controlling the sector, but about creating a trustworthy and sustainable environment for investment and development.
“As more investors enter the market, strong regulations help:
- Prevent fraud
- Resolve disputes
- Ensure fair treatment of buyers and tenants
- Promote orderly urban development
“Clear laws also improve access to financing, attract foreign investment and contribute to economic growth and job creation by creating a transparent and trustworthy business environment,” he said. On the importance of having accredited or recognised regulatory bodies, Makhubu said regulators play a vital role in maintaining standards and protecting the public.
“Regulators establish standards for:
- Licensing
- Ethics
- Qualifications
- Conduct
“This helps prevent fraud, corruption, unfair practices and disputes. They also build public and investor confidence by ensuring that real estate professionals and developers operate within the law,” he explained.
He noted, however, that the complexity of the sector means regulation cannot be left to one institution alone.
“The industry involves many interconnected areas such as:
- Land governance
- Property development and construction
- Property transactions
- Environmental management
- Development and housing finance
- Taxation
- Urban planning
- Consumer protection
“As a result, multiple regulators must work together in collaboration to ensure effective oversight,” he said.
Makhubu pointed out that the ministry and the Eswatini Financial Intelligence Centre (EFIC) were already collaborating to regulate real estate agents due to the sector being identified as a high-risk area for money laundering activities.
“Collaboration among these regulators ensures that the sector operates efficiently, legally and sustainably while protecting the interests of investors, property owners, tenants and the wider public,” he said.
Makhubu further highlighted the long-term benefits that the regulatory framework would have for ordinary emaSwati, investors and the broader housing sector.
“For ordinary emaSwati, the interventions discussed above and a functional regulatory framework in the real estate sector help to protect tenants and homebuyers from:
- Exploitation
- Unfair evictions
- Fraud
- Unethical practices by real estate agents,” he said.
- He added that the framework would also promote:
- Clearer rental agreements
- Clearer property transactions
- Fair treatment
- Proper dispute resolution mechanisms
“Regulation of real estate agents also ensures that only qualified and accountable professionals operate in the market, improving service quality and public trust,” he said.
For investors, Makhubu said the framework would create legal certainty and boost confidence in the market.
“Investors are more likely to invest in a property market where:
1. Transactions are transparent
2. Contracts are enforceable
3. Professional standards are maintained,” he noted.
“At national level, the regulatory framework strengthens the broader housing and urban development sector by promoting professionalism, accountability and alignment with sustainable development goals,” concluded Makhubu.
Leave a comment