Are you planning to invest your money in real estate? Have you ever considered buying properties in Africa? You might hesitate with the belief that Africa may not be a profitable continent when it comes to real estate investment. There was a time when this was a common conception of Africa and even a few decades ago, the continent only managed to attract tourists thanks to its wild natural beauty. However today reality is is different – the real estate sector is booming in Africa.
This continent, with its vast amount of space, is full of potential as land is comparatively cheaper and building materials and labor is inexpensive, but of high quality. In fact, many European, Western and Asian countries have already invested money in Africa.
South Africa is considered a developed market in the real estate sector. Therefore, countries like Ghana, Nigeria, Tanzania, Kenya, Mozambique, Rwanda, and Angola are becoming the prime focus of real estate developers and investors. The economic condition in Africa is also improving, with African citizens becoming increasingly interested in investing money in property.
In 2013, Global Real Estate Institute (GRI) hosted its first African GRI conference in Nairobi, Kenya. International real estate developers expressed their interest in investing money in Africa’s real estate sector and also pointed out some current issues, such as a shortage of financial organizations and an underdeveloped infrastructure in some countries.
The buying market is changing with international and African pension funds, sovereign wealth funds and African private equity and real estate funds becoming significant players in the sub-Saharan region. Getting a home loan in Africa is not easy, as there is a lack of long-term mortgage financing in parts of the continent. However, thanks to the growing number of international players to the market, bringing liquidity to the continent, the real estate market is constantly developing.
There is also a huge opportunity for investors looking for new frontiers in the rental market. Though rent is current quite high, many local and international organizations are working on monitoring fair rental rates. The continent is very rich in natural resources, with a great amount to offer the world economy. It is fundamental that investors and developers do not overlook the abundance of opportunities in real estate and construction in Africa.