The stage is set for growth in real estate in Africa.
“There are attractive opportunities for African real estate acquisitions,” says Ravi Kumar Chandran, Director of IDE Consulting Services, who organised the Design Mission Africa convention that was held in Johannesburg in November 2016.
“In the past decade, amongst the 54 countries in Africa, only four mature markets were regarded as viable destinations for inward investment capital. These were Nigeria, Ghana, Kenya and South Africa,” said Ravi, before adding that a number of nations have enhanced their attractiveness in terms of real estate opportunities because of large and growing populations, positive GDP growth, shrinking dependence on commodities and improved political and social context. These include Ethiopia, Zimbabwe, Côte d’Ivoire, Senegal, Mauritius, Uganda, Zambia and Tanzania.
The quality of real estate markets in parts of Africa is also improving significantly. These improvements are partly driven by international occupiers whose requirements and corporate governance are dictating that building design, materials and environmental considerations all comply with their global standards. Private development opportunities are also rising on a grand scale as a result of the huge shortfalls in residential property across the continent. A lack of local funding for infrastructure projects is also providing ample opportunities for new private partnerships with government.
“Economic growth, improving political stability and ongoing investment in infrastructure are opening previously inaccessible markets, while increased transparency and availability of local partners is helping to improve the ease of doing business,” concludes Ravi.
For more information, contact IDE via www.ide-global.com.