What’s causing the sudden interest in African real-estate and motivating international investors to seek out new prospects on the continent? According to Knight Frank, the world’s leading real estate consultancy headquartered in England, investors are currently attracted to the growth potential within African markets which makes good real estate highly desirable by investors abroad as well as investors within the African continent.
Knight Frank’s Africa Report 2015 points to projections on population growth across the continent by the year 2100 as a leading factor in investor interest. By 2100, it is projected that Africa’s population will quadruple to 4 billion meaning that 40% of the world’s population will reside within Africa. In Nigeria, which happens to be Africa’s largest economy with a GDP of $593 billion, the population is set to top nearly 1 billion by 2100.
Impressive, right? And the growth has already begun across the continent. One of the fastest growing economic regions in the world is Sub-Saharan Africa and within the next five years 13 of 20 fast-growing global economies are projected to be within Africa. Luanda, the capital city of Angola currently has one of the highest office rents in the world at $150 per square feet. This is driven by lack of availability in the face of high demand for office space from the oil and gas sector. Adding to this, the population of Luanda is expected to grow by 70% by the year 2025.
Population growth is often accompanied by a growing middle class, and urban regions across the entire continent are seeing such growth. Retailers in particular are rushing to snatch up excellent real estate deals. Chinese investors are already active within real estate development across Africa and the experts at Knight Frank are also paying attention to more investment activities come out of South Africa, with more capital flowing in from South Africa into the northern regions than ever before.
This century will prove to be exciting for the entire African continent and it is clear that investors of all types are playing the long game when it comes to investing within Africa. However, it is doubtful that we will need to wait until 2100 to see some amazing developments coming out of these economies with growth well underway.
from Anthony S Casey and Real Estate http://ift.tt/1asVmUh