Real Estate Investment In Africa: Is The Honeymoon Over?
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Summary
The environment for real estate investment in Africa contains a perplexing mix of positive and
negative factors. This is quite apart from the obvious fact that, in a continent of 54 countries
and wide variations in levels of economic development, it’s a very diverse landscape.
On the positive side, there is interest from a variety of investor types and origins. These include
developers, conventional institutional funds, hedge funds, sovereign wealth funds, Ultra High Net Worth
Individuals and others; and they span Asia, USA, the Middle East, South Africa and Europe. Product
quality is improving across all sectors due to the growing influence of international occupiers and developers,
transparency and ease of doing business are improving in some countries, and the high yields available – up
to 15% in some places – appear to offer good value, even against a background of high vacancy levels and
soft or falling rent.On the other hand, the collapse in energy and commodity prices has dented
growth in many countries, including large economies such as Nigeria and Angola, and exposed a lack of
diversity and still-high levels of dependence on natural resources.
