The Future Trends of Real Estate in African Countries
The increased population of Africa demands a better quality of residential as well as commercial infra-structures.
The advancement in the technological sector has made it easier for businesses to impact the whole real estate domain positively. Advanced technology has allowed real estate, more specifically buyers, to have a broader spectrum while investing in the sector.
Africa is considered one of the developing countries, so its infrastructure lacks behind when compared to developed regions. The chaos in the field of infrastructure development is resonating throughout the whole continent. The expansion of African cities is creating more opportunities for residential as well as commercial scale.
In case you are into real estate, the advancement in the sector of technology will prove beneficial for your business. In this article, we have listed some top trends of 2020 in the technology domain that is affecting the real estate industry.
1. Human association with machines
A hybrid model of human-comfort and proficiency of data-based machines is expected to hit the market shortly. The hybrid structure will increase efficiency and decrease labor and paperwork side by side.
As per the interpretation of Inglis, data-driven functioning and valuation will be more dominant in the real estate market of South Africa.
2. Improvement of developing cities
The motion of corporations towards the more affordable locality will give a boost to the second-tier cities. The phenomenon will attract families towards the residential area with better access to the offices, schools, and social places.
Some lands such as Gaborone are at lower risk while growing exponentially, so one can invest there. While Nambia is also at lower risk, the growth rate is slightly moderate to get the benefit. On the other hand, Zambia and Mozambique are at the excellent potential to attract investors.
As per the studies of PwC, the middle-class generation constitutes millennials, and Generation Z is more likely to grow with the ratio of 180% approximately by 2040. The generations are under student loans’ debts, so affordability and getting smaller places would be difficult for them, considering the economy’s steady-state.
Reportedly, Nigeria possesses more money than any other region, but it turns out quandary for the outsiders. Contrary, West Africa is struggling with weak-governance and Islam-related controversies.
4. Advancement in Technology
Lands including Mali, Northern Cameron, Bornu state in Nigeria, Eastern Niger, and Chad are considered the war zone due to the French military’s activities since World War 2.
A great mess surrounds DRC, CAR, Central Africa, and Burundi. Despite this, technological advancement, such as e-platforms, e.g., Live Venda, would positively serve in the long term.
The exponential growth of population in urban areas has made the durability of the area challenging. The FAO of the UN has reported that 35% more food, 40% more water, and 50% more energy will be required to support the entire population in the year 2050.
The increased population rate significantly affects real estate as the property buyers are more interested in eco-friendly infrastructure and renewable energy sources, and technology reduces waste. Egypt, Angola, Mozambique, Kenya/South Africa, and Nigeria are listed as the top five African countries with investment opportunities in real estate. As the advancement of African countries has attracted many opportunities for real estate investors with the increased demand for high-end residential and commercial real estate.