The real estate sector is another key growth area in sub-Saharan Africa as a combination of an expanding middle class and increasing demand by foreign investors and expatriates for quality office space and housing for their employees provide an underpinning boost for real estate across the continent.
From energy to mining, banking to telecoms, technology to media, new investments have spelt new office spaces, new residential accommodation and associated economic spin-offs. The expansion of mobile-phone companies and their cell sites, the growth of banks with cross-border branches, oil and gas investments from Senegal to Mozambique, as well as investments in mining, power and infrastructure, have had their own knock-on effects on real estate.
A number of countries stand out for the investment opportunities they present. One of them is oil-rich Nigeria, where the main city of Lagos, the capital Abuja and the oil-industry hub of Port Harcourt present the most lucrative opportunities in Africa’s most populous country, biggest oil producer and largest economy. The country has witnessed substantial private-equity funded expansion of the retail shopping space,on the back of which South Africa’s Shoprite Group and Walmart subsidiary, Game, have penetrated Nigeria’s major cities.
In Angola, another major oil producer, the cities of Luanda and Huambo have seen high demand for office space and residential estates. In Mozambique, on the Indian Ocean coast, the discovery of huge reserves of natural gas and resultant production activities have altered the real estate environment.
The South African cities of Cape Town and Johannesburg are attractive real estate markets, though sometimes depressed by the political climate. Similarly, the Kenyan capital, Nairobi, has attracted investments in recent years, though fears of terrorism have somewhat dampened the market.
These are only samplers of the fast-paced dynamics of the real-estate market across the continent. Afrika Insights has researchers and experts who can address your specific needs, and provide you answers that will lead to a good understanding of the market.