Sub-Saharan Africa to benefit from international realty capital inflows

The JLL report discloses that Sub-Saharan Africa is entering a period of high and sustainable development; continued economic and demographic advancement in this region are merging to fuel the formation of urban markets of global measure, which is creating a requirement for major capital inflows for commercial property in the region’s growing metropolitan infrastructure. Sub-Saharan Africa is entering a high-growth period of development and thus demand for modern commercial and office space is on the rise.

Sub-Saharan Africa has some of the world’s fastest-growing economies with urbanisation happening at an increased rate, coupled with a flourishing middle-class, the region is now under the microscope of many commercial property companies, investor groups and hotel operators. JLL Chairman of Sub-Saharan Africa, Mark Bradford add that “Investment in the region is not without its risks; however those with a long-term view on Sub-Saharan Africa and are prepared to build and take on strong partnerships to cope and assuage the challenges could be in a beneficial position in securing big rewards in the long-term.

As established markets become more mature and thus start to saturate, global financiers are attracted to the opportunities which Sub-Saharan Africa can offer. As market limpidity and capital inflows continue to progress, the potential return on investment over mature markets is strengthening the case in Sub-Saharan Africa for long-term investments. International investors investing in Sub-Saharan Africa are strategically picking out key locations and investments such as commercial property development as they have scalability and tremendous growth potential.

The cities in which most of the international investment and development will take place:

• Abuja (Nigeria)
• Addis Ababa (Ethiopia)
• Dar es Salaam (Tanzania)
• Kampala (Uganda)
• Kigali (Rwanda)
• Lagos (Nigeria)
• Luanda (Angola)
• Lusaka (Zambia)
• Maputo (Mozambique)
• Nairobi (Kenya)

New real estate and commercial property fund options have become plentiful, created to focus on the development of Sub-Saharan Africa. New equity sources are also growing such as and including: pension funds, real estate investment trusts, private equity and sovereign wealth. About 20-25% of capital is coming from North America and a further 15-20% coming from European sources.