Investing in real estate never disappoints since it is an immovable property that you may explore as the years go by. Immovable property is an asset in your portfolio that you can upgrade at any time through renovation and new additions.
But growing your income will highly depend on the place and location you choose to invest. Africa remains the top continent for increasing your real estate investment since it is classified as an emerging market. Many global investors invest in Africa and take advantage of the upcoming opportunities.
The most recent findings indicate that Africa still leads with more than 70 percent of China’s international investors. Other countries are following the same direction, i.e., Russia, Turkey, and India. With the alarming growth rate in urban cities, Africa is continuing to pave the way for better opportunities than any other continent. How Africa is lately developing has led to high demand for quality and safe housing, challenging the African government.
There are significant signs of economic growth in real estate currently and in some years to come. We have done thorough research, and here are the various cities in Africa that are recording a significant growth rate.
Nairobi City, Kenya
Nairobi is not an exception when recording Africa’s largest economy. The capital town is in the third category for its faster-growing economy globally and on Africa’s eastern coast. Besides, the city is well-known for its improved infrastructure, especially the road system. With the busy streets across the town, investing in a real estate venture will yield increasing income now, and according to forecast, it will double in the future.
Most big African companies such as Google, Coca-Cola, and IBM have made Nairobi their headquarters. The acknowledgment from those big international companies has contributed to the rise in population, making it hard for the city to meet the housing demand. Also, the tourism sector is robust, resulting in a growing demand for big hotels and guest hubs.
Despite the rapid terrorist attacks experienced some years back, retail tenants’ decline has now turned to a gold rush. Today, it is time to take advantage of the incredible setting in the city and invest.
Accra city, Ghana
Ghana is among the most stable states in Africa in political matters. This political stability contributes to fewer internal conflicts and good relationships with the neighboring states. Keeping this in mind, investing in real estate has gone an extra mile to include domestic and international investors.
The capital city of Ghana is Accra. Accra has a high population growth. Currently, there is a shortfall of about 100,000 units to meet the housing demand of 150,000 residential units every year. This residential shortage means that affordable residential housing in Accra is still a challenge.
The excellent setting and governmental laws in Accra city allow foreign investors to own property. This city is ideal for investment due to its increasingly urban population looking for employment and rentals.
Luanda city in Angola
Global investors must consider the city of Luanda for investment. Being the capital city of Angola, it is ranked fifth for its growing economy. Even with the recent construction of new units, there is still a shortfall in housing units. The shortage of housing units has resulted in a rise in demand for both residential and commercial properties.
The Luanda port area has increased the demand for commercial units, especially those connected with the oil company. An increase in warehouse space to cope with the high demand and business growth is still expected. Despite a fall in oil prices, the oil industry remains the primary income source for domestic real estate investors. Also, the rise of office space rates has attracted a significant number of global investors per month.
In addition, a few products are locally made, raising the demand for most commodities. Allowing foreign real estate investments is expected to change the market’s entire conditions since locals can produce agricultural products and other products domestically. If locals can produce more products, they will later decrease food commodities rates reaching the Luanda market.
Kigali city, Rwanda
The capital city of Rwanda is Kigali. Kigali is top-ranked in matters of size due to the increasing rate of the urban population. Rwanda is among the nations with an increased demand for residential and commercial properties due to the developing business community. However, Kigali alone cannot meet the housing demands of over four hundred thousand units by 2022.
According to the forecast, with the increasing domestic and international real estate investments, the demand for residential and commercial properties is expected to double. This potential increase is quite encouraging, bearing in mind that the Rwandan Genocide resulted in a standstill in the growth of the annual gross domestic product.
The growing population has led to an increase in both low and medium-rated housing units. Additionally, population growth has also increased government infrastructure development, hence increase the number of overseas investors.
Lagos City, Nigeria
Lagos city has remained the most densely populated city in Nigeria and ranked second in size across the African continent. The town is in fourth place for its growing economy brought by the content’s most prominent and busiest seaports.
The most recent findings show Nigeria has the most extensive gross domestic product (GDP) in Africa. The economy in Nigeria is growing faster than any investor across the globe could imagine. The IMF estimations five years ago show that Nigeria is ranked sixth with a rapidly growing economy.
With Lagos being the biggest city in Nigeria, its population is also not left behind in terms of growth. Lately, Lagos is recording a tremendous population growth rate compared to the other cities in Africa. The development in Nigeria and the population growth have increased demand for highly valued and medium-rated residential and commercial properties.