By John Ikani
Africa’s Real Estate investment landscape continues to pale in comparison to the global market, according to a new report by Estate Intel, an African real estate data firm.
In 2023, the continent attracted a mere $1 billion in real estate investments, representing a tiny 0.15% share of the global market’s staggering $684 billion total.
The “African Real Estate Capital Trends” report paints a clear picture: Africa lags far behind its counterparts. The Middle East and South America also recorded relatively low figures, with $2 billion and $4 billion, respectively.
In contrast, North America led the pack with a whopping $373 billion, followed by Europe at $162 billion and the Asia-Pacific region at $140 billion.
“While Africa’s transaction volume is showing signs of growth, the overall investment landscape remains underdeveloped,” the report acknowledges.
Examining regions like North America, Europe, and Asia-Pacific reveals a significant disparity in both the value and number of property transactions recorded in 2023.
These regions boasted investment volumes of $373 billion, $162 billion, and $143 billion, respectively, compared to Africa’s meagre $1 billion.
The report also highlights notable projects in South Africa and Kenya as major drivers of real estate investment in Africa during 2023.
Key developments in South Africa included the Sam Ntuli Mall and the Standard Bank and Nedbank buildings. Kenya saw significant contributions from projects like the Highway House and Yaya Centre.
Deeper Dive into Investment Trends
Estate Intel’s report delves deeper, offering insights into Africa’s real estate investment trends from 2010 to 2023, showcasing regional performance across the continent.
Southern Africa emerged as the leader, attracting a total of $21.5 billion in real estate investments over the 13-year period. This growth was primarily fueled by the commercial and industrial sectors.
South Africa stood out as the region’s powerhouse, contributing over $20 billion, representing more than 90% of the market.
The Northern region followed with $1.7 billion, driven mainly by Egypt and Morocco. Here, the hospitality sector reigned supreme, accounting for 74.2% of the region’s transactions, bolstered by a robust tourism industry.
Western Africa saw $1.2 billion in real estate investments, with commercial and hospitality sectors taking the lead. Nigeria dominated the region’s transactions, followed by Ghana.
Eastern Africa attracted $1 billion in investments, primarily driven by Kenya, the region’s commercial hub, and Mauritius, a leader in the hospitality sector.
Central Africa brought up the rear with a mere $0.01 billion in investments over the 13-year period. The hospitality sector was the main driver here, with Cameroon being the key contributor to the market.
