Top 5 cities for real estate investment in Africa, 2020
Now is the time to invest! With globalization the world has become more connected and has made it even easier to invest almost anywhere. If you are an investor of real estate and have a nick for travel, we have got you the best excuse to start jet setting!
In the real estate sector, Africa presents great investment opportunity with a high return on investment (ROI) serving great as an additional revenue stream. As a smart investor this is the time to go in and take advantage of the opportunities. The significance of real estate in Africa is highlighted by the fact that over 70% of the Chinese direct foreign investment sits across African cities. Other countries have already started following suit and increasing their investments on the continent as well.
There is inward migration of labour into larger cities by people in search for better opportunities and higher wages. This influx of movement of people moving into the cities has put pressures on African governments to make provision for good quality and affordable housing. The reality on the ground is that this rapid increase in demand for housing has not been met as is far too large a burden to handle. This type of growth of African cities is matched with a growing middle to upper class creating a demand for high-quality and safe housing. This presents another crisis in these cities.
As a whole, the continent has shown profound signs of economic growth in the last decade and real estate is no exception. Amongst the 54 countries in Africa, some cities have shown exceptional growth! These are the top five cities in Africa to invest in 2020.
This is no surprise, as Lagos has not only the largest economy in Africa, but is also the 6th fastest growing economy on the continent! With it’s ever growing population there is a constant demand for both high-quality low to medium-priced residential and commercial units.
2. Accra, Ghana
Accra has a population of over 4 million people and is ever growing. Ghana is one of the most politically stable countries in Africa and has managed to maintain good relations with its neighbours too attracting expatriates and foreign direct investment into the country. Accra is experiencing a huge shortage of affordable housing and commercial units. These pressures are ever growing within the real estate sector because foreign property ownership is not only permitted, but is highly desired by the state. Thus, this is the perfect time to invest!
3. Kigali, Rwanda
Rwanda’s economy has been on boom in the last decade, thus it is no surprise that the real estate industry in its capital, Kigali is growing at an exponential rate. 20 years after the Rwandan genocide, Rwanda is becoming an East African success story.
Now is the time to join in on the real estate hunter games as Kigali is experiencing growth on multiple grounds; investment in infrastructure, foreign direct investment, and population growth. Naturally the demand for low to medium-priced housing has increased. This has further been propelled by the diaspora investing in property.
4. Nairobi, Kenya
Bringing it home to Nairobi, which is the capital city of Kenya. In recent years, Nairobi has been recognized in the top three fastest-growing economies in the world! Nairobi is home to many African headquarters like the United Nations (UN), Google, IBM and Coca-Cola. The demand for rental units to support a growing population has been on the rise. A healthy tourism industry exists in Kenya, generating a growing demand for the construction of guest houses and hotels.
However, in the last 2 years, demand from potential retail tenants has slowed down following the terrorist attacks. On the flip-side what seems risky today can be a gold mine in the future.
5. Luanda, Angola
Africa’s 5th largest economy and 5th on this list is Luanda, the capital city in Angola! The growing demand of both residential and commercial units in Luanda have not been met despite government efforts to construct new properties across the capital. The prices of office space per square meter are reportedly one of the highest in the world at a jaw dropping $150/m2 per month! Therefore, investing in Luanda, Angola guarantees you a high ROI.
Our expertise in the real estate industry in Kenya has been reckoned as one of the best. Our current listing lives up to this statement. Check it out for an array of properties across Nairobi and its outskirts; www.dunhillconsulting.com.