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Emerging Markets in Africa Driving Forward Office Market Demand, Report Shows

Emerging Markets in Africa Driving Forward Office Market Demand, Report Shows

Demand for office space in the Middle East and African regions is expected to grow despite recent turmoil in the area, with Ghana and Nigeria becoming the hub for real estate development.

Rapid growth in the banking, telecommunications and construction sectors is driving occupier demand. Flexibility and adaptability are the key characteristics needed to be successful in Africa and the Middle East, according to a report from global real estate services firm Cushman & Wakefield.

The increased need for investment in these regions will aid redevelopment and recovery. In turn, this should lead to further opportunities and sustained levels of interest from internal companies to relocate in the Middle East and Africa, according to Cushman & Wakefield’s Emerging Markets 2011.

However, experts warn that multinational companies operating in these markets or entering the region for the first time need to give careful consideration to the increased and changing risk factors such as political instability, and to act accordingly.

They highlight the need for companies to adopt a flexible business model and be sympathetic of local conditions when operating in these markets.

The oil and gas industry has led to sustained demand and growth in rental levels in Ghana. An increasing number of countries in Africa have experienced significant growth within the service industries; with banking, telecommunications and information technology (IT) all advancing significantly.

In addition to the boom in residential markets, the demand for office space is on the rise in Ghana – in part due to the rapid expansion of the oil and gas sector in the country. These markets have recovered somewhat recently as a result of being recognised as the more stable business hubs in the region, with rent and property prices stabilising and remaining among the highest in the region.

Projects like Capital Place in Ghana is a USD20 million commercial property in Accra. It prides itself as being the only Office Park Development in Ghana. It is located at Number 11, Patrice Lumumba Road, Airport Residential Area, Accra. The development encompass 3 No. standalone multi-story office buildings with the capability of housing a single tenant or of being subdivided for multi-tenant use. The total Gross Lettable Area is approximately 5,000sqm.

The project which started in the first quarter of 2013 was completed in December 2014. It is at the moment 100% leased and accommodates the offices of Hollard Insurance Ghana Ltd (Formerly Metropolitan Insurance), Maersk, Woodsfield Energy, Adamus Mining and Group 5 among others.

Political stability and economic growth are key to the development of the market for office space in the region. The established gateways from Dubai and South Africa will provide a connection to the rest of the continent, where growth opportunities exist

Contact Mobus today to find out more about our attractive Capital Place.