Sub-Saharan real estate set for big growth
Johannesburg, December 5, 2013
The commercial real estate market in Sub-Saharan Africa is primed for a ‘once in a lifetime’ positive growth opportunity, said a research report.
It is being supported by expanding middle class, new infrastructure investment and deepening corporate footprints, it said.
The Jones Lang LaSalle report on Africa, entitled ‘The African Century: Twelve Pillars of Africa’s Future Success’ identified 12 key factors that are underpinning the rapid evolution of 40 main cities across the continent.
While Africa’s natural resources have long been attractive to foreign investors, growth in manufacturing, technology and telecoms, finance, outsourcing, retailing and hospitality sectors, is creating an urgent need for modern commercial real estate, said the report.
The continent’s evolving urban network is creating a significant growth platform for the commercial real estate sector, it said.
Jeremy Kelly, the author of the report and global research director at JLL, pointed out that many Sub-Saharan African cities were showing remarkable dynamism.
"Accra, Addis Ababa and Maputo are among the world’s fastest growing city economies; Luanda and Lagos currently house some of the world’s most expensive commercial real estate due to severe supply-demand imbalances," said Kelly.
"Meanwhile Nairobi is emerging as a regional technology powerhouse, known as Africa’s ‘Silicon Savannah’."
“This rapid evolution of cities across Sub-Saharan Africa is translating into a high-energy phase of real estate development as the industry responds to rapid urbanisation and strong demand from businesses and consumers for modern commercial offices and shopping malls,” he added. - TradeArabia News Service