The African real estate market is in a strong position this year after going through some tough challenges in 2016.
They have been navigating their way through problematic economic conditions – a lot of investors around the world are private equity groups as opposed to long term investors and Africa has also endured painful currency problems, in particular, in Nigeria and Zimbabwe.
Africa did gain momentum last year in the retail, residential and hotel markets, however, property directors and investor are hoping for the African real estate market to become even stronger in the entirety of all industries this year.
Mauritius, South Africa, Kenya and Mozambique have seen a strong hotel and resort development growth as the tourism industry has rocketed. The interest has been going up over time for the African tourism industry and among international investors.
A company that has been making a large presence in Mauritius is Mara Delta and they are the biggest African real estate investment trust (Reit) that has been established. They continue to invest in various African countries across the continent, developing and improving the African real estate market and diversifying the African economy.
Lagos is a big African city that has seen increased investment and rising house prices, which has dramatically improved their reputation in the housing market. They are also set to take advantage from the largest budget ever announced by a Nigerian state this November, it is called the “Golden Jubilee Budget” and corresponds with the State’s 50th anniversary.
Despite the country’s property sector being listed on the Nigerian Stock Exchange (NSE), the operations are tax inefficient and the sector is very underdeveloped. This means that the property news that stated Nigeria receiving a big budget has come at a very good and appropriate time.
African real estate market is improving radically across the whole continent but there is still room for more developments. International investments help to improve their financial and economic market and tourism injects a lot of money into the African economy, a pivotal market that benefits Africa hugely.
This year may be one to highlight an increase in foreign investments and budgets that can really help to take the African real estate industry to the next level.
Written by Gemma Smith