Key regions: United States, China, Japan, Germany, United Kingdom
The Real Estate market in Africa is experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this positive trajectory. Customer preferences in the African Real Estate market have shifted towards urbanization and modernization. As the continent's population continues to grow rapidly, there is a rising demand for housing and commercial spaces in urban areas. Customers are increasingly looking for properties that offer modern amenities and conveniences, such as high-speed internet, security systems, and proximity to transportation hubs. Additionally, there is a growing interest in sustainable and eco-friendly buildings, as customers are becoming more conscious of environmental issues. Trends in the African Real Estate market reflect the continent's economic growth and increasing foreign investments. Many African countries have experienced stable economic growth in recent years, attracting both local and international investors. This has led to a surge in construction projects, including residential, commercial, and infrastructure developments. The market is also witnessing a rise in mixed-use developments, where residential, commercial, and retail spaces are combined in a single property. This trend is driven by the desire for convenience and accessibility, as customers are seeking properties that offer a variety of services and amenities in one location. Local special circumstances in Africa, such as rapid urbanization and a young population, have contributed to the growth of the Real Estate market. Urbanization is occurring at a faster pace in Africa compared to other regions, resulting in a higher demand for housing and commercial spaces in cities. Additionally, Africa has one of the youngest populations in the world, with a large proportion of the population being of working age. This demographic dividend has created a strong demand for affordable housing and office spaces, as young professionals seek opportunities in urban areas. Underlying macroeconomic factors have also played a crucial role in the development of the African Real Estate market. Economic growth, urbanization, and foreign investments have all contributed to the increased demand for properties. Additionally, government policies and regulations have been favorable towards the Real Estate sector, promoting investment and development. Improved infrastructure, such as transportation networks and utilities, has also made previously inaccessible areas more attractive for Real Estate investments. In conclusion, the Real Estate market in Africa is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The demand for modern and sustainable properties, along with the rise of mixed-use developments, reflects the changing preferences of customers. Rapid urbanization, a young population, and favorable government policies are driving the growth of the market. Overall, the Real Estate sector in Africa is poised for further expansion in the coming years.
Data coverage:
Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.Modeling approach / Market size:
Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.
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