The real estate development in the African Continent will grow further by megatrends despite various challenges facing the continent, including political instability, complex legal regimes and investment time-frame restrictions.
The real estate sector in the continent has significant opportunity and more investors are pumping more resources to the industry and more still getting used to volatile currencies.
According to Building the Future of Africa’s real Estate report advisory firm PwC, there are unique trends in the continent such as such as rapid urbanization and demographic changes that are highly driving the opportunities growth in the real estate sector across Africa.
The report records that there are more opportunities in the African market that have not been utilized, and in Africa, there is a young population that is in a real demand for real estate.
According to PwC Africa, real estate leader Ilse French, the real estate demand is a result of the combination of 8 global megatrends, including urbanization, growth of middle class, technology, sustainability, influence of investment-related governance policies and regulations, shortage in infrastructure and expected inclusion of sustainability ideas in building designs, increased investments through banks and pensions as well as through stock exchanges. Above all the continent is anticipating gross domestic product (GDP) growth.
He has said Africa carries 15% of the global population and only 3% of GDP, as well as having youngest population aged below 14.
She further noted that by 2025, African continent’s labor force will be larger than the one for China, and this will increase development in the Real estate industry.
According to the report by the year 2025, Africa’s labour force is likely to be on an increasing side and larger than China’s the population.
French has said oil and gas discoveries in Mozambique exemplified impact natural resources on real estate development had. “…Investors acted on the opportunity, providing the infrastructure necessary to fully exploit these resources and, as a result, an entire new city [was] developed in the northern province of Cabo Delgado,” He added.