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Global megatrends driving Real Estate growth opportunities in Africa

11-Jan-2019
Global megatrends driving Real Estate growth opportunities in Africa

PwC Africa Real Estate Leader, Ilse French said previously inaccessible markets were opening up through economic growth, improving political stability, and ongoing investments in infrastructure.

The PwC publication, Real Estate: Building the future of Africa, shows an assessment of the current state of the real estate industry across Africa through 10 selected countries in sub-Saharan Africa (SSA) that provide insight into the local, regional and global influences on real estate markets.

The report says that opportunities across the African continent are significant and span every property sector.

In almost all markets the 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 will give rise to private investment on a grand scale.

A lack of local funding for infrastructure projects provides a platform for new private partnerships with the public sector.

Shifting demographic trends and changes in consumer behaviour are also likely to create a huge demand for new and different real estate by 2020 and beyond.

According to the report, we will also see the entry of more specialist investors into the market. Projected forecasts of 20% net annual returns from investing in shopping malls, office blocks or industrial complexes in countries across the continent continue to draw in new investors.

Among the findings, the following eight drivers for growth were identified:

Africa’s young population will drive the demand for real estate and different types of real estate. Across Africa there will be continued urbanisation, an expansion of current cities and the rise of new cities.

Industrialisation will continue across Africa and will be accompanied by a rapid growth in the retail sector.

Industrialisation will continue across Africa and will be accompanied by a rapid growth in the retail sector.

Continued advancement within pension fund, stock exchange and banking regimes will facilitate investment, and an increased range of investors will drive demand for real estate investment opportunities.

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