The narrative surrounding African real estate has changed in recent years. By 2020, a select few cities were already trending as favourites for real estate investments.
Fast forward to 2023, and the dynamics have evolved, though some cities have retained their appeal. As the best African country for business remains a topic of debate, real estate in Africa undeniably offers numerous investment opportunities. Here’s a look at the top ten cities to consider:
1. Lagos, Nigeria
Lagos remains Nigeria’s economic powerhouse. This vibrant city, bustling with commerce and a rapidly expanding tech ecosystem, has seen consistent growth in real estate demand. As Africa’s largest city, Lagos grapples with a surging population, leading to a higher demand for quality housing and commercial spaces.
Considering Nigeria’s position as one of the countries allowing foreigners to buy property, international investors have steadily poured in, aiming to tap into the city’s potential. Given the shortage of quality housing, this demand is expected to remain strong.
2. Accra, Ghana
Accra, the capital of Ghana, boasts of political stability and a warm investment climate. The city has undergone transformative urban development, turning it into a focal point for international businesses. Coupled with the fact that Ghana is among the African countries that permit foreigners to own land, Accra’s real estate market is bustling.
Reports indicate an increasing number of expatriates moving to Accra, further driving the demand for quality residential and commercial units. This underscores the lucrative nature of investing in African real estate, especially in cities like Accra.
3. Kigali, Rwanda
Kigali is often touted as one of Africa’s cleanest and most orderly cities. After enduring a tumultuous past, Rwanda’s capital is witnessing an impressive urban renewal. There’s a rising demand for both residential and commercial units, mirroring Rwanda’s steady economic ascent.
The Rwandan government’s investment in infrastructure and its efforts to promote Kigali as a tech and business hub are bearing fruit. The influx of both local and foreign investments into the city’s real estate sector underlines its potential.
4. Nairobi, Kenya
As East Africa’s largest economy, Kenya presents Nairobi as its crown jewel. Nairobi is home to many international organizations and serves as a vital transportation and business hub. With a growing middle class and an expanding expatriate community, the demand for modern housing and office spaces is on the rise.
Although past security concerns temporarily slowed retail demand, the city’s resilience and strategic importance have ensured a rebound. Investment in Africa by country statistics further solidifies Kenya’s position as a top contender for real estate ventures.
5. Luanda, Angola
Luanda’s strategic importance cannot be overstated. As the capital of one of Africa’s major oil producers, there is a continuous demand for quality residential and commercial real estate. With the oil industry remaining a dominant player, Luanda’s prime real estate locations, especially near the port area, are seeing significant investments.
The city’s burgeoning middle class also suggests a ripe market for residential housing. While Angola has faced economic challenges, Luanda’s real estate sector remains robust.
6. Cairo, Egypt
As the gateway between Africa and the Middle East, Cairo has a rich history and remains a pivotal city for trade and commerce. Its strategic location and the steady flow of tourists mean there’s always a demand for real estate, be it commercial establishments or hospitality ventures.
Foreigners looking for the best estate in Africa often consider Cairo for its mix of historical allure and modern amenities. The recent infrastructural projects and urban development plans further enhance its appeal.
7. Dar es Salaam, Tanzania
Dar es Salaam, as a primary port city, serves as a critical gateway to East and Central Africa. Its strategic location along the Indian Ocean has bolstered its status as a major business hub. As more companies set their sights on East Africa, the demand for office spaces and luxury residences in Dar es Salaam is expected to surge.
Recent government initiatives promoting the city as a business-friendly destination have further bolstered its reputation. For those considering the cheapest country to buy land in Africa, Tanzania, with its favorable land policies, could be a contender.
8. Johannesburg, South Africa
Johannesburg, or Jo’burg as it’s affectionately called, is the economic heart of South Africa. The city offers a blend of first-world infrastructure with a burgeoning tech scene. As businesses expand, so does the demand for commercial and residential spaces.
South Africa’s favorable property laws, which allow foreigners to own and invest in property, make Johannesburg an attractive destination for international real estate investors. Additionally, the city’s diverse population ensures a dynamic and resilient real estate market.
9. Casablanca, Morocco
Casablanca, immortalized in film, is more than just a romantic destination. It’s Morocco’s business hub and the home to the country’s largest port. This North African city has been a magnet for businesses and investors alike, given its strategic location and its link to both Europe and Africa.
Recent urban development projects have transformed Casablanca’s skyline, with luxury apartments and state-of-the-art office spaces becoming more prevalent. The blend of tradition and modernity makes it a unique and promising location for real estate investment.
10. Addis Ababa, Ethiopia
The Ethiopian capital, with its blend of history and modernity, is experiencing a real estate boom. The city’s elevation, making it one of the highest capitals in the world, hasn’t deterred investors. With the African Union headquartered here and a growing number of international organizations setting up base, demand for quality real estate is on the ascent.
Government policies promoting foreign investment and the city’s unique cultural heritage make Addis Ababa an intriguing option for those seeking to invest in African real estate.
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While the quest to identify the best African country for business continues, the continent’s diverse and dynamic cities offer a plethora of real estate investment opportunities. From the bustling streets of Lagos to the historic lanes of Cairo, each city presents a unique blend of challenges and opportunities. With the increasing interest in real estate in Africa, now may be the optimal time to consider where you’ll stake your claim.
