In 2023, Africa’s real estate investment amounted to just $1 billion, representing a mere 0.15% of the global real estate market, which reached an impressive $684 billion. This data is drawn from the newly released “African Real Estate Capital Trends” report by Estate Intel, a leading platform for real estate market intelligence in Africa..
The report noted that Africa’s real estate investment was the lowest globally, with the Middle East and South America also registering relatively small figures of $2 billion and $4 billion, respectively. In stark contrast, North America led the market with a massive $373 billion, followed by Europe at $162 billion and the Asia-Pacific region at $140 billion.
The report emphasized that while the continent has seen annual growth in real estate transactions, Africa’s investment landscape remains modest compared to regions like North America, Europe, and Asia-Pacific, where real estate investment volumes reached hundreds of billions of dollars.
Significant real estate investments in Africa in 2023 were primarily driven by key projects in countries like South Africa and Kenya. In South Africa, major developments included the Sam Ntuli Mall and the Standard and Nedbank buildings, while in Kenya, projects like the Highway House and Yaya Centre added to the investment activity.
Looking at the broader trend from 2010 to 2023, Southern Africa emerged as the leading region for real estate investment, with $21.5 billion in total, dominated by the commercial and industrial sectors. South Africa was the primary driver, contributing over $20 billion, or more than 90% of the region’s total. Northern Africa followed with $1.7 billion, largely focused on the hospitality sector, especially in Egypt and Morocco.
Western Africa saw $1.2 billion in investments, with Nigeria and Ghana leading the commercial and hospitality sectors. Eastern Africa’s $1 billion investment was spearheaded by Kenya, the commercial hub, and Mauritius, known for its hospitality sector. Central Africa, however, recorded the lowest investment volume with just $0.01 billion, largely concentrated in the hospitality industry, with Cameroon being the main contributor.
These figures highlight the vast potential within Africa’s real estate market. As the continent continues to grow, strategic investments can unlock significant opportunities, especially in sectors such as commercial real estate, hospitality, and infrastructure development. Africa’s young, rapidly urbanizing population, combined with an increasing focus on infrastructure and modernization, positions the continent as an emerging frontier for future real estate growth. The key lies in leveraging these opportunities to drive sustainable development and build a thriving real estate sector that matches the continent’s long-term potential.
