The African property market in the fourth quarter of 2024 showcased a notable recovery and growth trajectory, as outlined in the Knight Frank Africa Report 2024/25. Over 95% of the markets surveyed by Knight Frank rebounded from the impact of the COVID-19 pandemic. Across major real estate sectors, transactions, prime rents, and average yields had returned to pre-pandemic levels.
In the office sector, there was increased demand for Grade A stock, particularly buildings compliant with ESG (Environmental, Social, and Governance) standards. Developers have been refurbishing older buildings to meet these standards, ensuring sustained demand and occupancy levels.
Meanwhile, the retail sector witnessed a shift from necessity-driven consumption to leisure-oriented experiences in modern shopping centers, notably in regions such as Kampala and Entebbe.
The industrial sector demonstrated remarkable resilience, driven by government initiatives and the growth of e-commerce. This resulted in the development of modern logistics infrastructure, particularly evident in regions where e-commerce has seen significant expansion.
The residential sector experienced growing demand for mixed-use and community living developments. However, affordability remained a significant concern. To address this, developers have introduced innovative financing options, complementing government initiatives like Egypt’s ‘Housing for All’ program.
Regionally, West Africa stood out, particularly with Nigeria’s commercial real estate sector attracting foreign investment, especially in Lagos and Abuja. Despite challenges in the residential market due to economic uncertainties, Ghana benefited from increased government spending on infrastructure and housing projects, bolstering investor confidence.
In East Africa, markets like Nairobi and Kigali continued to show strength, driven by tech hubs and demand for office spaces and co-working facilities. Uganda also experienced growth in the retail sector, with modern shopping centers becoming popular.
Southern Africa displayed a mixed performance. In South Africa, slow growth persisted in the residential sector due to economic challenges, while the industrial and logistics sectors thrived, benefiting from the e-commerce surge. Zambia saw increased activity in the commercial real estate sector, particularly in Lusaka, as investors sought opportunities in a recovering economy.
In North Africa, Egypt’s property market witnessed significant growth, supported by initiatives like the ‘Housing for All’ scheme. Morocco’s real estate sector also showed resilience, driven by demand for both residential and commercial properties in cities like Casablanca and Marrakech.
Overall, the African property market in Q4 2024 demonstrated resilience and adaptability across regions and sectors. Infrastructure development, government initiatives, and foreign investment played pivotal roles in driving the market’s recovery and growth.
Source – African Property Excellence Awards 2024
