Population growth to drive Africa’s property market–Report

A new report has said that rapid population growth and urbanisation will drive the property market across Sub-Saharan Africa.

The Knight Frank Africa Report for 2017 stated that with the continents’ population growing at a faster rate than that of any other global region property business is set to experience further growth.

The Knight Frank report provides a unique overview of the continent’s diverse property markets. The report also describes how the real estate sector is continuing to aa, despite recent challenges.

The report revealed that a growing volume of capital is targeted at Sub-Saharan Africa real estate investment and development saying that with a series of new investment vehicles being launched in South African, Such funds are increasingly becoming prominent as they seek to diversify away from their domestic market.

“The retail property sector continues to be a major focus for development activity, causing the shopping mall concept to take root in an increasingly wide range of Sub-Saharan cities. Nairobi has been a retail development hotspot over the last two years, highlighted by the opening of the Two Rivers Mall, Garden City Mall and The Hub Karen,” the report noted. .

In the report, “logistics property sector is increasingly emerging as a focus for new development in Sub-Saharan Africa in recent years, and there is a growing recognition that the region’s key cities are undersupplied for modern warehousing space.”

Furthermore, Africa’s economies are currently growing at widely varying speeds, as falling commodity prices have led to a divergence between the growth rates of commodity-exporting and commodity-importing countries, the report added.

 

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