Real Estate Development in Africa

he growth in African real estate development can be attributed to a few factors.

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The Rise of Real Estate Development in Africa.

Africa has made major strides in the last decade. Moving away from the stereotype of a country where poverty is rife, there are now new stories emerging of Africa becoming a continent of opportunity. One of these opportunities is the rise in real estate development across the continent. What led to this? And what can we look forward to seeing more of it in the future?

Find out more about African real estate development and how it’s changing lives for generations to come.

 

What Led To The Growth In Real Estate Development?

The growth in African real estate development can be attributed to a few factors. One factor is the rise in the number of high net-worth individuals (HNWI) in Africa. The number of HNWIs increased by 28 percent between 2006 and 2015, creating an affluent class that can afford these luxury homes. Another factor is the increase in investment from outside the continent. In recent years, foreign investments have helped to improve infrastructure and economic growth across Africa. This has created opportunity for locals and foreigners alike to invest in real estate development projects, such as hotels and shopping centers, across the continent; this most often occurs in areas with good access to transportation routes and infrastructure like Nairobi, Kenya or Lagos, Nigeria. Lastly, improved internet services across most of Africa has led to an increase in e-commerce and digital marketing activity. This has made it easier for marketers to reach consumers through websites like Facebook or Instagram. So, what’s next? What should we see more of?

 

ubsection a) Demographics

In the last decade, the demographics of Africa have changed and with it comes a new and different African society. With the rise in population and increasing urbanisation, there is now an increasing demand for housing.

 

ubsection b) Demand for Infrastructure

The demand for infrastructure is a major factor in the rise of real estate development in Africa. The need for affordable housing has been growing, with many young people unable to buy a home. This has led to a surge in construction and new developments across the continent, with social housing playing a big part in this growth.

Due to the high cost of living, many Africans are unable to afford public housing which is why developers are focusing on low-income housing.

 

ubsection c) Foreign Investments

African economies are experiencing a burgeoning period of progress and growth. The country is quickly becoming an attractive market for investors. As well as the rising middle-class, there are now more people who have access to bank accounts or credit cards. As well as this, African economies are becoming increasingly stable.

This has lead to foreign investments in Africa. It’s also led to many new construction projects for housing, shopping malls, factories and much more. And this could only be the beginning; Africa could be on the verge of a boom in real estate development given its rapidly growing economy and expanding population with increased spending power.

 

What’s Happening Now In Africa?

Ten years ago, Africa’s economy was struggling and much of the continent still lived in poverty. Today, there are a number of countries on the continent with booming economies, where many Africans have access to better education opportunities and a better quality of life. In fact, according to the World Bank Group’s Ease of Doing Business report for 2018, Rwanda was ranked as the most competitive African nation.

In general, African nations are growing more prosperous due to many factors, but one major factor is international investment from around the world. The rise in jobs and higher income levels has led to a rise in real estate development across Africa.

 

ubsection a) Cities That Are Being Built From Scratch

Cities like Great Zimbabwe, which today is a ruin of its former self, are being built from scratch. These new cities are being constructed in an effort to modernize the continent’s infrastructure and to create new opportunities for business.

 

ubsection b) African Luxury Real Estate And How It's Different From Other Regions

One of the major differences in African luxury real estate is the price. For example, in Nairobi, Kenya, you can buy a three-bedroom penthouse for around £150,000. Compare that to London where estate agents are asking for more than £1 million for a one-bedroom apartment!

We're not just talking about the difference between developing and developed countries here. That's huge! And it's possible because Africa has done away with many of the traditional barriers to owning property - like inheritance rights and high interest rates - which have traditionally prevented African people from investing in property.

There are also significant differences when it comes down to construction materials and design. A lot of this is down to culture and climate. While Westerners typically favour modern European styles for their homes, African cultures are more likely to incorporate natural materials into their construction. This means that African homes will often use things like mud bricks or timber instead of steel frames or slate cladding. They'll also be less likely to include features like central heating or double glazing because they're not needed due to the warmer, outdoor temperatures in Africa.

Africa's rich history is evident all over the continent - in its language, religious beliefs and traditions; but these aspects are also seen in its architecture too! It's why you may come across many mosques or churches when you visit Nairobi or Kampala but never see one in Western cities like London or New York City.

Subsection c) What Future Real Estate Development In Africa Might Look Like.

Looking to the future, there are many possibilities for the real estate industry in Africa. The continent is expected to generate $100 billion by 2030 and it’s no surprise--new community developments and commercial projects are constantly popping up across Africa.

A few examples of what we could see in the future:

- More sustainable and eco-friendly properties as developers realize that sustainability is a priority for buyers

- More developments densely packed with apartments as African cities continue to grow

- More shopping malls as consumers turn online after finding it difficult to find or afford retail stores nearby.

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