After the cocktail of Covid-related aftershocks, sovereign debt crises, rising interest rates, and fiscal strain has left the African real estate sector bruised, but not broken. What’s emerging now is a reshuffling of priorities and strategies, pushed by return-to-office mandates, climate change imperatives, digital expansion, and the continent’s rapidly growing population.
“We are now seeing increasing evidence of a recovery in pricing,” observed Nils Rode, Chief Investment Officer at Schroders Capital. “Deal volumes and transaction pricing are showing positive trends.” This sentiment is echoed by Dr Kunle Awolaja, President of the African Real Estate Society, who noted that the formal real estate market in Africa has shown “significant growth” over the past five years and is poised to continue on this trajectory.
Yet, the picture remains uneven across the continent. “Each market is in a different state of development or recovery,” explained Adeniyi Adeleye, Head of Real Estate Finance for Africa Regions at Standard Bank. Local dynamics and policy directions shape distinct real estate outcomes in each country.
South Africa – resilience by the square metre
South Africa, home to one of the continent’s most mature property sectors, continues to display resilience even if it isn’t leading the continental rebound.
“If you look at the South African property markets, you would find that there was pressure during Covid, and that pressure has somewhat eased out,” said Adeleye. “Latest statistics talk about the office space having bottomed out… the retail market recovered quite quickly post-Covid.”
Simon Fiford, Senior Vice President of Real Estate Coverage at Standard Bank, highlighted that the commercial real estate sector in South Africa is now valued at around R1.9 trillion, up from R1.3 trillion in 2015. When the residential market—worth R6.9 trillion—is included, the total value of the country’s property market exceeds R8.8 trillion as of the end of 2024.
However, not all segments have benefited equally. “The structural undersupply of affordable housing in the country remains a challenge,” Fiford noted. “Government-subsidised housing makes up 32% of residential units or about 2.18 million homes.” The lingering housing deficit continues to reflect deep socioeconomic disparities and infrastructural gaps.
Across Africa, the sector’s rebound is being shaped by a complex blend of economic recovery, demographic momentum, and shifting investor confidence. The continent’s real estate narrative is no longer just about recovery—it’s about recalibration.
Source-Joycelyn Marigold- Property Express Magazine
Source : African Property Magazine -Joycelyn Marigold
