Real Estate Investor Magazine South Africa November 2016 | Page 46

AFRICA

Africa Rising
The stage is set for growth in real estate in Africa
BY RAVI KUMAR

A

frican real estate has become an increasing
part of the investment portfolios over the past
two decades, which prompts the question as
to the African prospects for the next decade. Is it a
good time to invest in African real estate? What is the
market like in Africa? And which market is lucrative?
While acknowledging market volatility, there is
consensus that there are attractive opportunities for
acquisition in African real estate. Favourable economic
and demographic characteristics in certain countries
and the trend towards urbanisation, underpin good
long-term fundamentals; and the basis for Design
Mission Africa, this November, in Johannesburg.

What countries are attracting investment?

In the past decade, amongst the 54 countries in
Africa, there are four mature markets that are
regarded as viable destinations for inward investment
capital. This being Nigeria, Ghana, Kenya and South
Africa. However recently, a number of states have
enhanced their attractiveness in terms of real estate
opportunities. This includes Ethiopia, Zimbabwe,
Côte d’Ivoire, Senegal, Mauritius, Uganda, Zambia
and Tanzania. The underlying reasons for their new
attraction include large and growing populations,
strongly positive GDP growth, shrinking dependence
on commodities, an improving political and social
context and greater stability in currency exchange and
inflati