Top real estate investment destinations in Africa
Africa has for the last few years displayed significant signs of economic growth. Various economic sectors including real estate have shown steady growth. For Africa-focused investors, real estate is one of the best investment opportunities. As Africa has continued to grow and catch up to the rest of the world, the demand for high quality residential as well as commercial real estate has increased. However, some African cities have displayed exceptional growth and continue to offer great returns on investment. This blog article is about some of the top real estate investment destinations in Africa.
To start with, according to the International Monetary Fund, Nigeria has one of the largest economies in Africa. This coupled with the fact that Lagos is the largest city in Nigeria, make this a ripe investment destination. Moreover, Lagos has one of the most rapidly increasing populations on the continent. Subsequently, this has led to an upsurge in the demand for high quality residential and commercial real estate. In addition, increasing trade, commerce, and business opportunities are making Lagos a highly desirable commercial and residential destination.
Rwanda is one of the African countries that has experienced steady and consistent growth for over a decade. It is considered one of East Africa’s success stories, especially given its dark and violent past. Rwanda as a whole is attracting a lot of direct foreign investment. This has thereby resulted in an increased demand for commercial and residential real estate. Kigali as the capital and largest city in Rwanda, it has received the majority of this investment. Hence the demand for housing and commercial units is higher than any other city in the country. With experts projecting that Rwanda’s growth will continue for years to come, it makes sense to invest in property now.
Ghana’s capital city, Accra is also the country’s largest city. Accra covers an area approximately 225.67 km2 with an estimated population of over four million. Ghana is one of the most politically stable countries on the African continent. On this basis, it generates a lot of interest and attention. A lot of countries on the continent are characterized by conflict and turmoil, however, Ghana is not one of these countries. Peace and stability are the order of the day in Ghana, not to mention it’s excellent relations with neighboring countries, as well as the larger international community.
Accra is a thriving hub of industry, commerce, and trade, thus it has a massive demand for both residential and commercial property. From an investors point of view, it makes a lot of financial sense to invest in the Accra property market. Ghana, in general, has a massive housing crisis with demand surpassing supply.
Nairobi is the capital city of the east African country of Kenya. It is also widely regarded as one of Africa’s biggest economies. Nairobi’s strategic location along the coast makes it a major transportation hub. The fact that major international brands including Google and Coca Cola are headquartered in Nairobi is a testament to its desirability. In addition, Nairobi has a thriving tourism industry which has also contributed to the increased demand for real estate. However, Nairobi has experienced terrorist attacks in the recent past. Subsequently, this has led to a few investors being on edge and therefore slightly slowing down growth.
Finally, we are going to look at Luanda. Luanda is the capital city of the southern African country of Angola. As Africa’s fifth largest economy, Angola has a thriving real estate sector. Supply of high-quality commercial and residential property is falling short of demand. Moreover, the cost of renting a commercial space in Luanda is among one of the highest globally. With such incredible returns on investment, this is an ideal market for investors to invest in.