The real estate industry in Africa is about to get better, thanks to a growing interest by foreign investors.
Foreign investors show growing interest in real estate
It has been discovered that investors are eying real estate across Africa like never before.
According to Gerhard Zeelie, Standard Bank’s head of real estate finance for the rest of Africa, a growing consumer middle class, rapid urbanisation and shifting demographic trends are all reasons why investors are showing interest in Africa's real estate.
“Foreign and local investors are seeing the growth potential of Africa, spurred by rising consumer spending of Africa’s developing middle class. Economic growth and investments in infrastructure are opening up previously inaccessible markets.”
Despite this interest, Gerhard notes that investing in Africa is not without risks like effect of unpredictable regulatory changes, complex legal regimes, volatile local currencies, limitations on investment timeframes and exit strategies.
However, a lot of investors are still interested in the African market as they are focusing on the long-term benefits rather than all the problems right now.
African countries that investors are interested include Nigeria, Ghana, Kenya, Mozambique and Zambia.
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