Real Estate Investor Magazine South Africa Dec/January 2020 | Page 58

AFRICA
Africa’s home of
high-end rentals
Lucrative investment opportunities in Kenya
SIDIMA MFEKU
F
inding an investment vehicle that will help one secure
and ensure sustainable economic stability is ideal. It
is very important that investors pay extra attention to
their investment vehicles’ analytics and financial track re-
cord over the years. This is to predetermine the probabilities
of the undesired results, the downfall of the investment and
bankruptcy of that particular investment vehicle. According to API’s analysis of the real estate and property
investment sector in Africa. The past two years have seen the
rise of specialised and sector specific real estate investments
platforms established to develop African-centric asset classes
in logistics, healthcare, affordable housing and hospitality.
Some of the standout platforms have included African Logistics
Properties (ALP) in Kenya.
While investing in general comes with uncertainty about
returns and wealth, it requires thorough research about that
particular sector for any investment hopes. In this regard,
the real estate and property sector has proven to often bear
fruitful returns on investments. It is particularly fruitful to
property investors who adhere to the golden rules of property
investment. “The positive investment results in
the country have made the country
appealing to a large number of real
estate investors around the globe. It has
also seen the erection of high valued
developments”
If any real estate and property investor really does their
research, they would know that many of the world’s most
improving property markets have been predominantly
African, with markets moving up a combined 82 places in the
index over the past decade. Even though Africa may be one
of the weakest continents in terms of political leadership,
transparency has proven to be increasingly important for the
commercial real estate sector and has been the core business
value in this continent.
Increased interest and activity in Africa’s value for business
development and most attractive real estate markets has
resulted in the harmonisation of the sector through the
development of local and regional industry associations. Given
the continent’s innovative growth, African Property Investment
association has been able to establish successful industry
events in Kenya, Nigeria, Mozambique, Zambia, Botswana,
Zimbabwe, Senegal and Cote d’Ivoire. Events that award and
embrace the growth that Africa has shown over the years.
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DECEMBER/JANUARY 2020 SA Real Estate Investor Magazine
Kenya
This African country has secured funding from institutional
investors such as (CDC) and recently, Standard Bank. The
investors include Actis’ dedicated hotel investment platform
with Westmont, Shapoorji Pallonji from India and their joint
venture with Improvon (a specialist warehouse developer).
Recently awarded for its high-end residential developments,
Kenya is among the largest and most advanced economies in
the East and Central Africa. It has a relatively growing population.
Kenya’s real estate and property sector is growing rapidly and
this is due to the emergence of a greater middle-class, as well
as the need for high value housing in the country. The growing
demand for high value housing has shown real estate and
property investing opportunity for investors around the globe.
The positive investment results in the country have made