In 2023, Africa’s real estate investment volume reached $1 billion, representing a mere 0.15% of the global real estate market, which totalled an impressive $684 billion.
This information is highlighted in the newly released “African Real Estate Capital Trends” report by Estate Intel, an African real estate market intelligence platform.
The report also revealed that Africa had the lowest real estate investment volume in 2023 at $1 billion, with the Middle East and South America also recording relatively low figures at $2 billion and $4 billion, respectively.
In stark contrast, North America led with $373 billion, followed by Europe at $162 billion and the Asia-Pacific region at $140 billion.
“While we note the overall annual growth rate of transactions in the continent, Africa’s investment landscape is still very small. A closer look at regions such as North America, Europe, and APAC indicates a significant difference in the value and number of property transaction recorded in 2023. Precisely, the three regions recorded US $ 373b, US $ 162b and US $ 143b worth of investment volumes in the period under review, respectively, whereas Africa recorded transactions worth US $1b,” the report read in part.
Furthermore, the report highlighted that significant real estate investments in Africa in 2023 were driven by notable projects in countries such as South Africa and Kenya. Key developments in South Africa included the Sam Ntuli Mall and the Standard and Nedbank buildings, while in Kenya, major projects such as the Highway House and Yaya Centre contributed to the investment volume.
More insights
The Estate Intel report also provided detailed insights into Africa’s real estate investment volumes from 2010 to 2023, highlighting performance across various regions of the continent.
- According to the report, Southern Africa led with a total real estate investment volume of $21.5 billion during this 13-year period, predominantly in the commercial and industrial sectors. South Africa was the major contributor, accounting for over $20 billion, which is more than 90% of the region’s market.
- The Northern region followed with $1.7 billion in investments, mainly driven by Egypt and Morocco. The hospitality sector dominated this market, representing 74.2% of the region’s transactions, bolstered by a strong tourism industry.
- Western Africa recorded $1.2 billion in real estate investments, with the commercial and hospitality sectors leading the way. Nigeria took the majority of the region’s transactions, followed by Ghana.
- Eastern Africa saw $1 billion in investments, driven primarily by Kenya, the region’s commercial hub, and Mauritius, which excelled in the hospitality sector.
- Central Africa had the lowest investment volume, with just $0.01 billion over the 13-year period. This was largely driven by the hospitality sector, with Cameroon being the main contributor to the market in this region.
