Africa’s Imminent Real Estate Boom: The Causes

Causes of the Property Boom in Africa

Property or real estate provides shelter, one of the basic needs for humanity. Everyone needs a home to live in, to house a business, for social activities or other purposes.

Wikipedia defines Real Estate as “property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general. It includes structures (also called improvements or fixtures) integrated with or affixed to the land, including crops, buildings, machinery, wells, dams, ponds, mines, canals, and roads, among other things.”

Africa is in the midst of a property and infrastructure development boom that is expected to last until after 2050. Infrastructure development remains at the forefront of the continent’s growth trajectory for the next few decades.

The term ‘mega project’ is now common in Africa than ever as governments sign huge integrated development deals in efforts to improve the quality of life of their citizens. Investors from the West, from Europe and the East are scouting for across the continent for good infrastructure and property opportunities to exploit. At the same time within the African continent a new breed of investors is raising up packaging better deals than foreign investors. For the first time ever there is competition for deals from outside and from within Africa.

The main reasons for Africa’s Real Estate Boom include;

• Population growth,
• Urbanisation,
• Infrastructure development,
• Constant Higher GDP growth rates (Economic growth),
• Growth in the middle class,
• Africa is becoming more stable politically and economically.

The next few articles explore the major reasons for this boom and give advice on how to tap into this massive African opportunity before it is too late.