SAFARI TALK "AFRICA THROUGH THE EYES OF AN AFRICAN".
10 Best Cities for Real Estate Investment in Africa.
Buying and owning real estate is an investment strategy that can be both satisfying and lucrative,
unlike stock and bond investors, prospective real estate owners can use leverage to buy a
property by paying a portion of the total cost up front then paying off the balance, plus interest over time.
While a traditional mortgage generally requires a 20% to 25% down payment, in some cases a 5% down payment
is all it takes to purchase an entire property.
In many African cities, there is an inward migration of labor into larger cities
by people in search for better opportunities and higher wages,
this influx of movement of people moving into the cities has put pressures on african governments to
make provision for good quality and affordable housing.
The reality on the ground is that this rapid increase in demand for housing
has not been met as is far too large a burden to handle.
As a smart investor, this is the time to go in, and take advantage of the opportunities.
In this video, we are going to present to you the 10 best cities for real estate investment in Africa.
Our video is based on thorough research that we have taken on real estate investment
from trusted and reliable sources with a good track record.
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10} Dar es Salaam, Tanzania.
Increased investment and trading activities in Dar es Salaam have led to higher demand for housing units
and commercial buildings.
Dar es Salaam "Tanzania's largest city and one of the fastest-growing cities in the world"
is ranked among the best cities for real investment due
to Tanzania's housing sector's fast-growing demand, mainly driven by the strong and sustained economic
growth "GDP growth", averaging 6-7% over the past decade,
its fast-growing city of Dar es Salaam
which has a population of 7 million and is expected to more than double by 2050.
In Dar es salaam, a 3-bedroom residential property located near a beach or in a prime location
is priced between 300,000 $ to 500,000 $, and in other areas
3-bedroom houses are priced starting at 50,000 $ only.
Tanzania's rental market practice is pro-landlord,
rents are freely determined, advance payments can reach up to six months or one year,
the legal limit is only two months' rent.
9} Cairo, Egypt.
Cairo, "one of Africa's megacities", and the biggest city in the Middle East.
The city has sustained an improved real estate market,
during the first quarter of 2021, the nationwide real estate price index surged 28.3%.
Private investors had been enticed by the new urban community's authority to engage in the
provision of social housing projects since 2019.
President Abdel Fattah El-Sisi recently removed
the last restrictions on foreign ownership of land and property in Egypt, in an effort to buoy the housing market.
Egypt has been keen to upgrade and stretch its urban regions while introducing sustained advanced and smart communities.
It has therefore further progress and opportunities for real estate
sectors and outline several incentives to help attract foreign investors
8} Lagos, Nigeria.
This is no surprise!, as Lagos is not only Africa's biggest city but is also one of "Africa's fastest-growing economies" ,
with its ever-growing population there is a constant demand for both high-quality,
low to medium-priced residential and commercial units.
While asking rents are much higher on the Lagos Island,
rental yields are generally higher in the mainland due to the surging prices in the
island market, yields are moderate at 4.3% for the Lagos mainland, and 3.64% for the Lagos Island.
According to research carried out by Nairametrics in 2020, Chevron island showed the highest yield of 6.87% on investment
and is expected to grow more, Agungi Island with 6.31% and Osapa island with 6.06%
7} Kigali, Rwanda.
Rwanda's economy has been on boom in the last decade,
thus it is no surprise, that the real estate industry in its capital is growing at an exponential rate.
20 years after the Rwandan genocide, Rwanda is becoming an African success story.
Demand for secure-affordable housing
is surging because of fast urban population growth estimated at 5.75% annually.
Kigali's demand for new houses over the next three years is projected at nearly 350,000.
Now is the time to join in on the real estate hunter games, as Kigali is experiencing
growth on multiple grounds; investment in infrastructure, Foreign Direct Investment, and population growth.
Naturally the demand for low to medium-priced housing has increased,
this has further been propelled by its fast-growing diaspora community.
With its friendly and flexible laws for investment
Kigali is one of the most attractive market for real estate investment in Africa
, the most attractive market for real estate investment in Africa.
6} Accra, Ghana.
Accra has a population of over 4 million people and is ever-growing,
Ghana is one of the most politically stable countries in Africa,
and has managed to maintain good relations with its neighbors,
attracting expatriates and Foreign Direct Investment into the country.
Accra is experiencing a huge shortage of affordable housing and commercial units, according to
Global Property Guide, 75 square meters luxurious apartment in prime areas in Accra costs around 200,000 $
while the cost of renting is 1750 $ per month, and the city has a gross renting yield of 11%.
Accra has an unproportionate ratio of residential housing units, industrial statistics show an
annual housing unit deficit of 100,000, stipulating inefficiency of residential and commercial bodies.
With its ever-increasing population of expatriates and African Americans emigrating in the city,
pressures are ever growing within the real estate sector because foreign property ownership is not
only permitted but is highly desired by the state, thus this is the perfect time to invest.
5} Luanda, Angola.
Luanda, "one of Africa's fastest-growing cities" is fifth on our list.
Luanda, the capital city of Angola.
The growing demand of both residential and commercial units in Luanda
have not been met despite government efforts to construct new properties across the capital
One of the most expensive cities to live in the world, the prices of office space
per square meter are reportedly one of the highest in the world at a jaw-dropping 150$
per square meter' a month, therefore, investing in luanda angola guarantees you a high return on investment.
4} Nairobi, Kenya.
Nairobi is one of the best cities for real estate investment in Africa.
Nairobi, Kenya's capital, in recent years Nairobi has seen a sharp increase in
the number of expatriates and other foreign nationals residing in the city
Nairobi is home to many African headquarters like the United Nations, Google, IBM, and Coca-cola.
The demand for rental units to support a growing population has been on the rise, a healthy tourism industry
exists in Kenya, generating a growing demand for the construction of guest houses, and hotels.
The average price for a one to three bedroom residential property is currently 140,666$
while the average price for a four to six-bedroom residential property
is 381,948$, according to Haas Consult Limited research of 2019,
some of the best neighborhoods for real estate investment in Nairobi are Ridgeways,
Muthaiga, Girigiri, and Karen which have the highest gross rental yields of between 10% to 5%,
while other neighborhoods such as Westlands, Runda, Spring valley, Dunham, Lavington, Kilelewshwa,
Kilimani, Kitisuru, Eastleigh, and Langata have gross rental yields of between 4% to 1%.
3} Cape Town, South Africa.
Cape Town, "the mother city of South Africa" is ranked
as one of the best cities in the world to live, work, play and invest.
Cape town has long been at
the forefront of wealthy investors throughout the globe and is enjoying some of the highest
property sales, its amazing beaches, and weather are ideal for retirees and foreign property buyers.
Gross Rental Yields on apartments in Cape Town range from 5% to 8.3%,.
Atlantic Seaboard Properties are among the most sought after
because of the beaches and cliffs, upscale neighborhoods
like; Bakoven, Bantry Bay, Camps, Clifton, Fresnaye, Green Point, and Mouille Point.
The Central Business District of Cape Town
is another upscale residential suburb, it is one of the most stable residential markets
in Cape Town because of its prime central location and vibrant cosmopolitan lifestyle.
Tenants pay between 15$ to 17$ per square meter 'a month while a 120 square meters apartment costs
around 1,700$ per month. On the other hand, a 300 square meters apartment costs around 4,650$ per month.
2} Johannesburg South Africa.
South Africa being the third-largest economy in Africa,
is one of the best destinations for real estate investment on the continent
Johannesburg with its 5.6 million population is the largest city in South Africa and the most developed.
Located in Gauteng province, "the wealthiest province in South Africa", the city's gross rental yields
for apartments if fully rented out are good ranging from 6.5% to 9.3%, making it one of
the highest in South Africa, the most desirable neighborhoods in Johannesburg are Dunkled,
Hyde Park, Houghton, Illovo, Inanda, Melrose, Parkhurst, Parktown, Parkview, Sandhurst, Saxonwold and Westcliff.
Buying an apartment can cost you around 300,000 $ for a 200 square meters
apartment and 1,814 $ for monthly rental. Apartments do appreciate at 8% per annum, which means you
could get a net rental return of 9.25% per annum, a remarkable overall Return on Investment of 17.25%.
1} Marrakech, Morocco.
Morocco is among the top affordable countries to buy a luxury real estate property in Africa,
the fourth largest city in Morocco, and one of the most
visited cities in Africa.
Marrakech holds strong growth prospects favorable political stability
and an enticing environment for foreigners.
Marrakech has observed a resurgence in its real estate market over the years
which has been influential in drawing in foreign investors.
Development in the city over the years have been many with major projects such as;
upper-class restaurants and hotels, classy bars, mammoth-sized stores and warehouses among others.
The rehabilitated and modernized airports railways and highways enhance traveling in and
around the nation another feat that adds to the potential of success in the real estate industry
properties in Marrakech stand at 2,300 per square meter on average.
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