It is important to note that Africa’s diversity also extends to different levels of risk, with some regions thriving and others suffering from corruption and instability.
In this context, six African countries shine as promising opportunities for investors seeking exceptional returns. These opportunities await those who recognize Africa’s potential and want to harness it to generate profitable investments in the 21st century.
Real estate in Nigeria has emerged as an attractive investment opportunity due to strong growth. In 2022, the sector contributed over 28 trillion naira to the country’s GDP, proving its economic importance. The forecast foresees structural reforms and consolidation of key institutions to simplify the process of housing development and ownership. Key growth hubs in 2023 include Lagos, Port Harcourt and Uyo, with a focus on affordable housing and agricultural technology development.
Nigerian real estate investors stand to benefit from a fast-growing market that is poised for expansion. As the sector grows, urban regeneration, job creation and strategic investment will increase the earning potential. Despite challenges such as rising production costs, opportunities abound for investors seeking Africa’s high-growth markets, making real estate in Nigeria a wise choice.
Kenya’s real estate sector is growing due to robust infrastructure development, rapid urbanization, post-COVID-19 economic recovery, and growing investor confidence, presenting an attractive investment outlook. This sector, which accounts for 13.8% of the country’s GDP, reflects impressive growth and positions Kenya as a global real estate hotspot.
Looking ahead to 2024, Kenya’s real estate market is expected to continue expanding. Commercially, office space and warehousing are in high demand, with increased interest in serviced offices and international standards. Strategic relocation of industrial parks accommodates increased import and export activities. With a rapidly growing population and a housing shortage of 200,000 units per year, the housing market, especially the rental market, has immense potential. Kenya’s dynamic real estate environment offers investors resilience, growth and opportunity, making it a smart choice in Africa’s real estate sector.
Investing in real estate in Ghana is a wise decision backed by stability and growth. Ghana’s impressive score of 63 on the Fragile States Index highlights its commitment to democracy and the rule of law, which fosters a stable political environment that is ideal for investors. Additionally, the government’s effective economic policies have promoted currency stability, controlled inflation, and established a favorable environment for real estate investors and businesses alike.
Ghana’s real estate market offers attractive rental yields ranging from 19.3% to 22.0%, ensuring attractive returns for investors. Additionally, with inflation expected to rise by 74.7% over the next five years (according to the IMF), real estate is positioned as a hedge against economic instability, facilitating capital value appreciation and rental income growth. For foreign investors, the devaluation of the Ghanaian Cedi is an opportunity to enter the market as favorable exchange rates make real estate more affordable and they can earn more rental income in their own currency. In summary, investing in real estate in Ghana combines stability, growth and attractive returns, making it a wise choice in Africa’s thriving real estate environment.
Investing in South African real estate is a strategic move driven by several key factors. Urbanization continues to draw more people to cities, increasing the demand for well-located urban real estate. Additionally, the rapid rise of smart homes, expected to become a $31.41 billion market by 2033, is providing an innovative advantage. Sustainable and green building practices are also gaining ground, creating new investment possibilities.
South Africa’s real estate landscape is undergoing a digital transformation. Virtual real estate tours and blockchain-based real estate tokenization are revolutionizing real estate transactions. Cities may even sell “air rights” as they expand upward. However, adopting cryptocurrencies as part of real estate transactions remains a challenge. Combining these insights with data paints a compelling picture of making smart investments in South African real estate.
Considering the country’s stability with a Fragile State Index of 70.1 and economic growth projected at 3% in 2023 and 3.1% in 2024, investing in Moroccan real estate is a wise choice. This stability and population growth ensure a steady demand for housing, making Morocco an attractive destination for real estate investors. Rental yields range from 3.1% to 5.8%, indicating moderate income, while expected inflation of 12.0% over the next five years suggests potential property value appreciation. This makes early investment strategic.
Morocco’s real estate market offers an attractive proposition, driven by the resilience of the economy and the recovery of a robust tourism sector. Tourist arrivals and income have rebounded significantly, consistent with the government’s tourist attraction efforts, which aim to reach 17.5 million arrivals and create 200,000 new jobs by 2026. As Morocco continues to prosper economically and as a tourist destination, Moroccan real estate is on the rise. This represents an attractive opportunity for investors seeking stability and long-term returns in North Africa.
Rwanda’s real estate sector is an attractive investment opportunity backed by solid statistics. The country’s GDP growth rate in the first quarter of 2023 was 9.2%, particularly in the services sector, highlighting the vitality of the economy. The real estate industry recorded an impressive growth of 9.0% in the first quarter of 2023, demonstrating its potential as one of the fastest growing sectors in Rwanda. Factors driving this progress include increasing urbanization, increasing demand for residential and commercial space, and government infrastructure investments.
Investing in real estate in Rwanda is consistent with a transformative growth story. Statistics reveal that the sector is growing due to urbanization, population growth, and infrastructure development. With expected low inflation and a strong middle class seeking quality space, Rwanda offers a strategic environment for real estate investment, with the potential for attractive returns. This opportunity comes in a politically stable environment and demonstrates Rwanda’s vision for economic prosperity through real estate development.
Kenny Nwankwo is the CEO of RE/Max ONE. His interests are primarily focused on the real estate, energy and technology sectors in Africa. A native of Miami, Florida, he has a deep passion for providing data-driven real estate investment advice that maximizes value creation.
