Growth, demographics to spur property returns from Africa
The latest review of factors that could spur economic growth across Africa, coupled with a strong demographic trend all point to significant opportunities from investing in property across the continent, according to the Africa Report 2015 published by Knight Frank.
Current projections put the content on track to hit a total population of some 4 billion people by 2100, representing some 40% of the global population, with 1 billion in Nigeria alone.
Other data published by the property specialist suggest that sub-Saharan Africa will account for 13 of the 20 fastest growing economies over the next five years. And that Luanda in Angola already has one of the costliest office rents in the world at $150 per square metre, driven by demand from the oil and gas sector amid a lack of supply. Luanda’s population is forecast to grow 70% between 2010-2025.
The growing population also means a growing middle class, and this puts the spotlight on property assets such as shopping malls. A relatively new concept in the region, they are already established in cities such as Nairobi, Lagos and Accra.
International investors are increasingly tapping opportunities in property via funds – which are developing separately to the significant infrastructure projects being financed by Chinese investors.
Click here to view the research: Africa Report 2015