By Engr (Dr.) A.S. Yunusa
Africa’s real estate sector is on the brink of a transformative era, offering unparalleled opportunities for wealth creation and economic growth. During a recent webinar titled “Unlocking Africa’s Real Estate for Transformation and Wealth Building,”powered by EASYNEC Initiative, industry leaders from South Africa, Zambia, Kenya, Ghana, and Nigeria shared invaluable insights on the untapped potential in their respective markets. The panel, featuring Lusanda Netshitenzhe (CEO of TUHF21, South Africa), Engr (Dr.) A.S. Yunusa (Nigeria), Geoffrey Gichuki Gerald (Land Acquisition Specialist, Kenya), Amb. Alhaji Salamu Amadu (Ghana), and Mubita C. Nawa (Lead Consultant, Zambia), explored key themes such as land acquisition, favorable government policies, access to finance, and the transformative role of technology. This article provides a detailed overview of their insights, supported by data, historical context, and actionable opportunities.
The African Real Estate Landscape: A Historical Perspective
Africa’s real estate sector has historically been underdeveloped, characterized by fragmented markets and limited infrastructure. However, rapid urbanization, population growth, and economic reforms are reshaping the sector. According to the World Bank, Africa’s urban population is expected to double by 2050, reaching 1.5 billion people. This urbanization wave is driving demand for housing, commercial spaces, and infrastructure, creating a $1.1 trillion opportunity in the real estate sector by 2030.
Countries like South Africa, Zambia, Kenya, Ghana, and Nigeria are leading this transformation, each offering unique opportunities shaped by their economic policies, demographic trends, and technological advancements.
Insights from Industry Leaders
1. South Africa: Affordable Housing and Innovation
Lusanda Netshitenzhe, CEO of TUHF21, emphasized the untapped potential in South Africa’s affordable housing sector. Despite having the most developed real estate market in Africa, South Africa faces a housing deficit of over 2.3 million units. TUHF21, a leading financier of inner-city property developments, has been instrumental in addressing this gap by providing funding and support to property entrepreneurs.
Netshitenzhe also highlighted the role of technology in transforming the sector. Proptech platforms like Property24 and Private Property are streamlining property transactions, while blockchain technology is enhancing transparency in land registries. She urged investors to leverage these innovations to unlock value in underserved markets.
2. Zambia: Industrial Real Estate and Land Acquisition
Mubita C. Nawa, a Lead Consultant in Zambia, shed light on the opportunities in Zambia’s industrial real estate sector. The government’s efforts to streamline land acquisition processes have made it easier for investors to secure land for development. Additionally, the establishment of Special Economic Zones (SEZs) has spurred demand for industrial and commercial real estate.
Nawa emphasized the potential in cities like Lusaka and Ndola, where the demand for warehouses, logistics centers, and manufacturing facilities is growing. He encouraged investors to explore opportunities in developing industrial parks and logistics hubs, leveraging Zambia’s strategic location as a regional trade hub.
3. Kenya: Land Acquisition and Affordable Housing
Geoffrey Gichuki Gerald, a Land Acquisition Specialist from Kenya, provided valuable insights into the challenges and opportunities in Kenya’s real estate sector. He highlighted the government’s Affordable Housing Program, part of the Big Four Agenda, which aims to deliver 500,000 affordable housing units by 2025. This initiative presents a lucrative opportunity for developers and investors.
Gichuki also discussed the complexities of land acquisition in Kenya, emphasizing the need for clear legal frameworks and community engagement. He noted that technology is playing a pivotal role in simplifying land transactions, with platforms like BuyRentKenya and Kwara revolutionizing the sector.
4. Ghana: Stable Policies and Growing Demand
Amb. Alhaji Salamu Amadu from Ghana highlighted the opportunities in Ghana’s real estate sector, driven by stable economic policies and growing demand for residential and commercial properties. The government’s National Housing Policy aims to address the country’s housing deficit, estimated at 1.8 million units, creating opportunities for developers to invest in affordable housing projects.
Amadu also emphasized the potential in Ghana’s commercial real estate sector, particularly in Accra and Kumasi. The rise of co-working spaces and retail malls is transforming the urban landscape, driven by a young, tech-savvy population. He encouraged investors to develop mixed-use properties that cater to the needs of modern businesses and consumers.
5. Nigeria: Africa’s Largest Real Estate Market
Engr (Dr.) A.S. Yunusa from Nigeria provided a comprehensive overview of the opportunities in Africa’s largest real estate market. Nigeria’s housing deficit, estimated at 22 million units, presents a significant opportunity for developers. The government’s National Housing Program and partnerships with private developers are addressing this gap, particularly in urban centers like Lagos, Abuja, and Port Harcourt.
Dr. Yunusa also highlighted the role of technology in Nigeria’s real estate sector. Platforms like PropertyPro and ToLet are digitizing property transactions, while blockchain technology is enhancing transparency in land registries. Additionally, the rise of smart cities, such as Eko Atlantic, is reshaping the urban landscape, offering opportunities for high-end residential and commercial developments.
Key Drivers of Transformation
1. Land Acquisition Reforms
Land acquisition has historically been a major challenge in Africa, due to complex legal frameworks and informal land ownership systems. However, countries like Zambia and Kenya are implementing reforms to streamline land acquisition processes, making it easier for investors to secure land for development.
2. Favorable Government Policies
Governments across Africa are introducing policies to attract investment in the real estate sector. These include tax incentives, public-private partnerships (PPPs), and affordable housing programs. For instance, Kenya’s Affordable Housing Program and Ghana’s National Housing Policy are creating opportunities for developers and investors.
3. Access to Finance
Access to finance remains a critical challenge for real estate development in Africa. However, innovative financing models, such as real estate investment trusts (REITs) and crowdfunding platforms, are emerging as viable solutions. The webinar highlighted the role of platforms like M-Pesa and blockchain-based financing in democratizing access to capital.
4. Impact of Technology
Technology is transforming Africa’s real estate sector, from property transactions to construction methods. Proptechplatforms are simplifying property searches and transactions, while blockchain technology is enhancing transparency in land registries. Additionally, modular construction and 3D printing are reducing construction costs and timelines, making it easier to deliver affordable housing.
Conclusion: A Call to Action
Africa’s real estate sector is at a tipping point, offering unprecedented opportunities for transformation and wealth building. The insights shared by Lusanda Netshitenzhe, Engineer (Dr.) A.S. Yunusa, Geoffrey Gichuki Gerald, Amb. Alhaji Salamu Amadu, and Mubita C. Nawa underscore the need for investors and stakeholders to embrace innovation, collaborate with governments, and leverage technology to unlock the full potential of Africa’s real estate sector.
As the African proverb goes, “The best time to plant a tree was 20 years ago. The second-best time is now.” The time to invest in Africa’s real estate sector is now. The opportunities are vast, and the potential for transformation is limitless. By taking action today, investors can not only generate significant returns but also contribute to the continent’s economic development and social transformation.