The accelerated pace in urban development in several African Countries implies an impressive potential for real estate investments. Over the years, the general African economy has witnessed healthy growth, with real estate being a successful investment ground.
The booming nature of investment in the real estate department has seen so many foreign investors troop into African cities to take advantage of the benefits it unveils. As a matter of fact, the Foreign Direct Investment (FDI) of China has over 70% of investment in African cities, with Countries such as India, Russia, and India all keen and eagerly increasing their investments in real estate on the African continent.
Year after year, urban migration is witnessed as more and more people move to cities in pursuit of dreams and better prospects. The influx presents the government with accommodation headaches, in the sense that, the number of people in cities outgrows and limits the number of affordable and good quality houses available. An inevitable increase in demand for affordable housing in safe neighborhoods renders real estate in several African cities a very lucrative investment venture.
Below are the top 10 cities for real estate investment in Africa.
Lagos State, Nigeria
Having the largest economy in Africa, whiles ranking 6th in terms of fast-maturing economies on the continent demonstrates Lagos’ potential as a fertile investment ground. Owning the fastest growing population rate than any other in Africa implies persistent pressure to supply affordable housing and commercial spaces, as well as upscale residences for capable clientele.
Renowned for its political stability, harmonious correspondence, and conducive working relationship with neighbors and international entities, the West African powerhouse maintains a desirable ambiance for investment.
The Nation accommodates a large population of 27 million people, with the capital city Accra, holding over 4 million of the total population. This situation has ensured an unproportionate ratio of affordable residential housing units to people. Industrial statistics have whispered an estimated annual housing unit deficit of 100,000, stipulating insufficiency in affordable residential and commercial bodies. This is an indication of the massive potential in the estate, and even more so, particularly with an increasing number of expatriates moving into the city to work and ultimately, accommodation.
Capital and largest city of the East African Nation Rwanda is a country that is currently experiencing a propelled economic growth rate, after it had been initially suppressed in the aftermath of the unfortunate genocidal history.
The entire nation has an inadequate supply of residential apartments and commercial entities, however, Kigali on its lonesome has a shortfall of residential and housing needs and is projected to approach 458,265 housing deficits by 2022. The present-day local and multinational investment, governments infrastructural development, and a growing population will only go to emphasize the surge in housing demands, especially between the low to, middle-class belt.
Beautiful and spirited Nairobi is among the top 3 accelerated economies in the world, and one of the largest economies in the African continent. It serves as a gateway into the African continent, due to its strategic position on the Eastern coast of Africa.
Nairobi is home to several international conglomerates and companies such as Google, Coca Cola, IBM and so on, as such, there is the need to expand by providing an abundance of rental units and housing structures to support the growing population. Tourism is also a vital component of the economy of Nairobi as the nation attracts a lot of tourists with its captivating features and safari, ergo, an increase in demand for the construction of guest houses, hotels, and vacation homes is necessary.
The capital city of Angola and the African continent’s 5th largest economy has the potential to recoup lucrative returns from the real estate industry as an intense call for housing and the residential unit is imminent despite efforts directed at new development across the capital, Luanda.
So dire is the demand that office spaces are sold out before the official inauguration. The oil industries have enhanced business opportunities as demand for warehouses and commercial spaces have intensified, with the prices of office spaces reported as one of the most expensive globally at US $ 150 per square meter.
Addis Ababa, Ethiopia
Real estate industries in Addis Ababa has boomed with an intensification of modernization and only looks to get better per the dynamism of the city’s urban planning. Ethiopia as a whole offers the most affordable real estate investment schemes, with office and administrative spaces in districts in Addis Ababa going for a little over US $50 per square meter.
The capital city hosts about 3.2 million people and is still growing at a spurred rate, so, its urban vicinities have scaled up to accommodate further real estate development to cater for the growing population.
Cairo has sustained an improved real estate market since the fourth quarter of 2019, with the city witnessing a restricted supply leading to inflated rent rates. Private investors and developers had been enticed by the New Urban Communities Authority to engage in the provision of social housing projects back in 2019.
The Egyptian nation has been keen to upgrade and stretch its urban regions, whiles introducing sustainable, advanced and smart communities. It has therefore envisioned further progress and opportunities for the real estate sectors and outlined several incentive schemes to help attract private investors and foreign operators.
The fourth-largest city of the Kingdom of Morocco, Marrakesh has observed a resurgence in its real estate market over the years which has been influential in drawing in foreign investors. Development in the city over the years have been many, with major projects such as upper-class restaurants and hotels, classy bars, mammoth-sized stores, and warehouses, etc., being constructed in Gueliz and Hivernage; both found in the newer region of Marrakesh.
Permitting and construction licenses are accessible and easy to obtain, particularly that which relates to time, cost and procedures. This is an attractive feature that has increased the appeal of doing business in the nation. The rehabilitated and modernized airports, railways, and highways enhance traveling in and around the nation, another feat that adds to the potential of success in the real estate sector.
More and more private property constructors have infiltrated Algeria’s real estate market, keen to satisfy the burgeoning demand the middle-upper class belt for affordable and upscale houses units and residential properties, as well as commercial units.
Low- income earners, meanwhile have voiced the loudest displeasure over the distressing housing inadequacies, which the public sector has been slow to address. This signals prospects for real estate developers who can design creative, sustainable, and advanced structures to address the residential and commercial situations particularly in the Bejaia city.
Amidst a thriving Mozambique economy, is a sprightly population with a predominantly young core, in their self-reliant ages merged with a fast-paced urbanizing nation results in a spike in demand for residential and commercial properties.
Discoveries in oil and gas is a step in the right direction for the industrial organizations of Mozambique, however, the subtle potential of success in the real estate sector is the real winner as an increase in demand for housing and commercial assets from the various classes of earners are inexorable.
The capital and economic center of the nation Maputo is certainly an interesting real estate hunting ground, even more so as major residential developers from Portugal, South Africa, and Turkey are vigorous producers of a low, medium, and high-end projects for inhabitation in the city.