Real Estate Investor Magazine South Africa November 2019 | Page 52

AFRICA
2020 vision for
Africa
The real estate market set for new
growth trajectory across the continent
A
number of trends are having a positive impact
on the growth of the African real estate market.
Market reforms are assisting the growth and flow
of investment into the region. The strengthening of capital
markets and the formation of frameworks around property
investment and development has laid the basis for a new
growth trajectory.
“The strengthening of capital markets across the region,
with developments around pension funds and savings and
the formation of institutional frameworks around property
investment and development lays the basis for a new era of
asset growth and consolidation,” says Dharmesh Kalyan, Head:
Real Estate Finance, Standard Bank Corporate and Investment
Banking.
According to Mr Kalyan, Standard Bank has witnessed a
focused investment strategy across specific sectors in the
market, with the emergence of distinct players engaged
in specific segments, as opposed to taking a broad-
brush approach. There has also been strong interest from
international investors, who are looking for better yields than
those available in their home markets, and Africa is able to
provide these returns.
Mr Kalyan is buoyed by growth across the continent. “We
see growth areas in key markets and asset classes, such as
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NOVEMBER/DECEMBER 2019 SA Real Estate Investor Magazine
East, West and Southern Africa. Some of these markets include
Uganda and Mozambique, with its oil and gas developments.
Nigeria, while experiencing slow growth, is a huge market. I’m
optimistic about growth prospects across the continent.”
“Governments are keen to engage the
IMF on policy change and pursue macro-
economic stability. The property sector
is benefitting from increased stability,
decreasing inflation and currency
predictability”
Fausio Mussa, Chief Economist, for Standard Bank
Mozambique and Angola continued in the same vein. While
acknowledging that the last ten years had offered mixed
returns, he foresaw better days underpinned by the move
towards political and economic stability across the continent.
“Governments are keen to engage the IMF on policy change
and pursue macro-economic stability. The property sector is
benefitting from increased stability, decreasing inflation and
currency predictability.”
Tola Akinhanmi, Standard Bank’s Head Real Estate Finance,
for West Africa is also positive about the continent. He said
that Africa has attracted much investment from South Africa,