Real Estate outlook in Africa 2021

Population boom impacts economic growth.

Africa is in the grip of a major economic boom. This boom has been filled by an influx of capital investment. The main contributor being China and the USA.

Many African countries have been attracting global investors looking for new opportunities. These are unique African Real Estate opportunities, that often times don’t exist elsewhere in the world.

African will be the most populated region by 2100

According to the Economist, Africa’s population is predicated to double to 2.5 Billion by 2050. This will make Africa the most populated region on the earth. More than Europe and Asia combined today. Africa is one of the world’s least developed regions.

With this population growth there is an immediate need for African real estate investment across commercial and residential sectors.

This combination of population and investment makes Africa attractive for real estate investors. This also has a low exposure to risk often associated with other emerging markets.

Urban housing crisis, an investment opportunity.

African cities are on the brink of an explosion in population due to rural to urban migration. This is mainly caused by those pursuing a better livelihood. This calls for massive construction of affordable housing across Africa.

By 2030, 40% of the world’s population will need new housing units, according to IFC. A majority of this need is in Africa.

This has lead to a definite housing crisis in Africa. The biggest problem is access to capital and investment to get more supply to the market.

The current housing crisis is not a new problem. The rate of growth combined with other factors has accelerated its severity in recent years. In turn this has led to the creation of shanty towns and neighborhood’s, also known as “slums”.

A major concern of slum dwellings is that people are living close together. There is lack of proper plumbing and waste systems. This is a significant health hazard in this Covid 19 era.

Nations need to address this urban housing crisis. This is because it affects human development, wealth generation and economic growth.

Many developers, governments, humanitarian organizations are implementing different solutions to this looming crisis. Construction of affordable and sustainable housing units is increasing in across Africa.
Cities are also adopting measures to upgrade slums through different ways. Improved plumbing and waste systems, road upgrades and construction, etc.

Rise in infrastructure developments attracting investments.

The continent has become the new hotspot for international buyers in recent years. The ongoing pandemic hasn’t stopped that trend either. One of the reasons for this is the ongoing developments in infrastructure.

Governments across the continent are investing in infrastructural development across all sectors. Road construction, schools, hospitals, digital infrastructure, upgrade of plumbing and waste systems, etc.

The residential sector is also implementing and adopting innovative and sustainable designs. These improvements are attracting investors and home owners alike.

The growing middle class, a ready consumer base.

The middle class in Africa has been growing rapidly over the last 40 years. This is due to improved education opportunities as well as economic and entrepreneur growth, among other factors .

This middle class demographic is projected to continue growing by as much as 2.2% per year. As such, it’s worth exploring how marketing strategies can target this emerging class.

By targeting the middle class, businesses have a chance at capturing some market share from Africa’s burgeoning consumer base.

This increased number of educated individuals means more businesses are sprouting up. This creates jobs for skilled labor, which in turn contributes meaningfully towards increasing prosperity and overall economic growth.

Africa is an emerging market that is worth considering. It is not the most obvious place to put your capital. As seen above, there are notable reasons why it can provide great returns on investments. This region will only continue to grow in population size, wealth, and influence on the global stage.

This is an emerging market that cannot be ignored if you are an investor looking for areas of investment. There are many reasons why investing in African Real Estate can provide great returns on investments- and it’s worth considering.

The high growth rates, increased population and high returns on capital mean savvy investors should be paying attention to Africa.

How to get started on your first investment.

Getting started is easier than you think. Our general advice is to first talk to an accountant or financial adviser. These people can let you know benefits of investing in property.

Once you have an understanding, start your search right here on our real estate platform We have a great supply of investment opportunities in many real estate sectors and nations in Africa.

If you want to discuss listing your property please contact our team. We are happy to answer any questions you may have.

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