African property markets are still poised for growth despite a slow down in various economies in the continent mainly caused by a slump in commodity prices thanks to global capital which continues to find its way in the region.
But even as property developers and private equity funds continue to pour investment into the continent, they are focusing on various strategies which enhance their returns, says the General Manager of the upcoming Africa Property Investment Summit, Kfir Rusin.
“Over $1,2 billion has been raised and allocated to real estate investment in Africa over the past year and we expect this trend to continue” said Rusin.
Over $1,2 billion has been raised and allocated to real estate investment in Africa over the past year and we expect this trend to continue.
The effects of the currency and liquidity crises have been sharply felt across the continent but most notably in the larger oil driven commodity exporting countries. This has resulted in a shift towards economic diversification and countries in the East African region providing more economic stability than others.
Commenting on the global capital flows making their mark on African real estate, Peter Welborn, chairman of Knight Franks’ Africa business says that “The underlying investment theme across sub-Saharan Africa, over the next decade will be driven by substantial allocations of equity, into joint ventures with successful local partners.
Real estate and related industries have been an important contributor to Africa’s GDP in recent years and analysts say they expect the trend to continue in future years.