Real estate in Africa: promising growth

From social housing projects to the development of commercial spaces, Africa is expanding to meet urban challenges and improve the quality of life.

• Smart city construction: These aim to meet the growing needs of urban populations. Konza Technopolis in Kenya, known as the “Silicon Savannah,” is being developed to become a major technology hub with a capacity of 200,000 residents by 2030. Similarly, Eko Atlantic in Nigeria, built on land reclaimed from the ocean, offers modern infrastructure for 300,000 residents and 250,000 workers.
• Public social housing initiatives: Social housing programs address the shortage of affordable housing. The Rwanda Housing Authority focuses on the middle and lower classes, reducing the deficit while supporting sustainable urbanization. The “Zero Slums” project in Morocco has relocated 1.8 million people, transforming slums into modern neighborhoods with better living conditions.
• Commercial and office development: The development of commercial and office spaces is another facet of the real estate boom. The Mall of Africa in Johannesburg, South Africa, is a 131,000 m² shopping center that showcases the growth of retail. The Africa Trade Center in Accra, Ghana, supports intra-African trade with modern office space suitable for expanding businesses.

Winning Strategies for Investing in Real Estate in Africa

The proliferation of these projects demonstrates incredible potential for those looking to invest in the sector. However, if you have plans for real estate, it is crucial to develop a thoughtful strategy.

• Invest in fast-growing urban areas: Social housing initiatives and the development of modern infrastructure demonstrate the exponential capacity of African cities. Reports from the African Development Bank (AfDB) provide valuable data for identifying high-potential regions, supported by rapidly expanding public infrastructure.
• Rely on local partnerships: Collaborating with local stakeholders is essential to better understand the specificities of African markets. Organizations like Pulsar Partners in Côte d’Ivoire illustrate the importance of developing projects adapted to local needs while maximizing profitability.
• Monitor public reforms and policies: Government reforms strongly influence the attractiveness of the real estate sector. In Côte d’Ivoire, the 1998 land reform modernized land registries and facilitated access to land for investors. Institutions like the National Urban Planning Agency help keep abreast of legal developments and guide strategic decisions.

Challenges to overcome when investing in real estate in Africa

While real estate investment opportunities in Africa are considerable, they come with significant challenges that are crucial to understand and manage to ensure optimal returns on investment.

• Lack of regulation: The absence of clear land ownership laws hinders investors in Africa. For example, in Liberia, land conflicts are frequent and complicate land acquisition. Initiatives such as the Urban Land Regime in Côte d’Ivoire have shown how reforms can secure property rights and encourage investment.
• Limited access to financing: Real estate loans are rare and often uneconomical, as in Senegal, where access to credit remains restricted despite initiatives such as the Caisse des Dépôts et Consignations. However, the World Bank supports solutions to improve financing mechanisms adapted to the real estate sector.
• Political and economic instability: Frequent changes in public policies and economic contexts increase risks. Analysis provided by firms such as PricewaterhouseCoopers (PwC) helps investors better assess these factors and adjust their strategies.

Real estate in Africa presents great opportunities, but investing in it requires a sound strategy and a lot of resilience. To explore best practices for real estate investment in Africa, book a session with our experts.