Indicators in the real estate sector in Africa point to a growing market niche which is attracting not only local investors but even those from outside the continent as well.
According to the host of the 10th annual African Property Investment (API) Summit Kfir Rusin, in the first two quarters of 2019, they tracked ten significant transactions in excess of more than a half a billion dollars across multiple jurisdictions and sectors by API Summit stakeholders.
The opportunities and growth shown by various international funds, Banks, DFIs, institutional investors and PE firms as well as others is testament enough that in spite of apparent indifferences to African opportunities in SA boardrooms, Africa’s real estate sector has really improved from what it was a few years back.
“The market has moved forward in the past six months, and we’re thrilled that so many major dealmakers will be at the API Summit to transact and share their experiences with our delegates,” Rusin says.
On the other hand, according to Craig Smith, a renowned real estate analyst with Anchor Stockbrokers, Africa’s top real estate markets are “definitely a more attractive entry point than 18-24 months ago”. He however cautions that investors will still require to exercise what he terms as “a higher level of diligence” when making their investments.
According to Rusin, South Africa and the continent as a whole is “witnessing sophisticated deal structuring in affordable housing, hospitality, logistics, office space, and mixed use, across countries and regions”.
This new trend is expected to attract even more investors who are eyeing to have a piece of the Africa’s real estate market.
