Economic development has been singled out as being the key driver of change in Africa. With increasing stability in the region and an appetite from investors for real estate, the interest in real estate in Africa lies in its fast-approaching development potential.
Why invest in Africa?
West Africa’s GDP developed at a rate of 5.89% in recent years. One report notes that net private capital flows into the region increased by 3.3 percent to a record high of $54.5 billion in 2012.
So far African economies have been generally resilient to the sharp fall of international commodity prices. Production of commodities has often increased despite the lower prices, and overall growth has been boosted by other sectors.
Tourism, a critical driver of development in the region with Ghana been recorded among the top 36 nations to be visited by travellers in 2016. The list was compiled by a group of 35 experienced and well-travelled bloggers from around the globe, who specialise in adventure travel, ecotourism, cultural travel and family travel.
Global foreign direct investments (FDI) in Africa has dramatically increased in 2014 to reach roughly USD 130 billion, against USD 54.2 billion in 2013. According to EY’s latest report on Africa’s attractiveness (2015), the continent is the world’s second fastest growing destination of FDI, just behind the Asia–Pacific region.
Top FDI destinations on the continent included Ghana, Egypt, Angola, Nigeria, South Africa, Morocco, Mozambique and Congo Republic.
Real estate in Africa
Ghana is driving an increased appetite for real estate investment. New developments in the housing market are at present being driven by new apartment block complexes. Catering for an increased demand that has resulted from new oil discoveries. For instance, Sekondi-Takoradi, the Western regional capital, is profiting from the impacts of late oil discoveries in the form of increased demand for residential property as well as commercial property. Interest is driven by both foreign and local employees directly associated with oil exploration, together with individuals from the local economy providing goods and services to this new market. Increased residential demand has been met with high-end apartment developments funded by foreign investment.
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