Investment returns from real estate in Africa's rapidly expanding economies significantly exceed those achievable in almost all developed markets. Forecasts of 20% net annual returns from investing in shopping malls, office blocks or industrial complexes in countries across Africa continue to draw in new investors.
The opportunities across Africa are significant and span every sector. In almost all markets, demand for high-quality retail, office and industrial space continues to outstrip supply as international and local occupiers respond to new economic opportunities. Huge shortfalls in residential property across the continent give rise to opportunities for private development on a grand scale, while a lack of local funding for infrastructure projects provides a platform for new private partnerships with the public sector. Demographic shifts and changes in consumer behaviour create demand for different types of real estate, allowing the entry of more specialist investors into the market.
Economic growth, improving political stability and ongoing investments in infrastructure are opening previously inaccessible markets, while increased transparency and availability of local partners is helping to improve the ease of doing business. Levels of investment in real estate in Africa are low in by global standards, while significant challenges exist in exploiting potential opportunities.
However, our research suggests the impact of global megatrends on Africa will be huge and in this report we consider their impact on the continent. Our objective is to provide an assessment of the current state of the real estate industry across Africa and demonstrate how megatrends will drive growth opportunities in key African markets.
The report also considers the real estate market in 10 selected countries in sub-Saharan Africa. These country profiles provide insight into local, regional and global influences on the real estate markets of individual countries, providing an illustration of the impacts of trends being felt at a national level.
We hope this report will provide insight into the real estate market in Africa and help to identify some of the opportunities, risks and rewards to be encountered by investors in African real estate.
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