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Residential Real Estate Transactions - Sierra Leone

Sierra Leone

In Sierra Leone, the Residential Real Estate Transactions market market is anticipated to witness a significant surge in transaction value, with projections indicating a figure of US$384.80m by the year 2024.
Moreover, it is expected to exhibit a commendable compound annual growth rate (CAGR) of 7.33% from 2024 to 2028.
Consequently, this growth trajectory is estimated to culminate in a market volume of US$510.70m by the end of 2028.
Residential real estate transactions in Sierra Leone are experiencing a surge due to increased foreign investment in the country's growing tourism sector.

Key regions: Asia, Japan, China, Europe, Germany

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Analyst Opinion

The Residential Real Estate Transactions market in Sierra Leone has been experiencing significant growth in recent years.

Customer preferences: One of the main factors driving this growth is the increasing demand for residential properties in the country. Sierra Leone has a growing population, and as more people enter the middle class, there is a greater demand for housing. Additionally, there is a trend towards urbanization, with more people moving to cities in search of better job opportunities and improved living conditions. This has led to an increased demand for housing in urban areas, particularly in the capital city of Freetown.

Trends in the market: One of the key trends in the residential real estate market in Sierra Leone is the development of gated communities and housing estates. These developments offer a range of amenities and services, such as security, recreational facilities, and access to basic infrastructure, which are attractive to buyers. This trend is in line with global preferences for integrated and secure residential communities. Another trend in the market is the rise of affordable housing options. With the government's focus on poverty reduction and improving access to housing for low-income households, there has been an increase in the construction of affordable housing projects. These projects aim to provide decent and affordable housing options for those who cannot afford to buy or rent in the traditional market.

Local special circumstances: Sierra Leone has a history of political instability and civil unrest, which has had a negative impact on the real estate market in the past. However, in recent years, the country has made significant progress in terms of political stability and economic development. This has created a more favorable environment for real estate investment and has attracted both local and foreign investors to the market.

Underlying macroeconomic factors: The growth in the residential real estate market in Sierra Leone can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, which has led to an increase in disposable income and purchasing power. This has allowed more people to enter the property market and invest in residential properties. Secondly, Sierra Leone has implemented several reforms to improve the ease of doing business and attract foreign investment. These reforms have included streamlining the process of acquiring property rights and improving the legal framework for property ownership. These reforms have helped to boost investor confidence in the market and attract both local and foreign buyers. In conclusion, the Residential Real Estate Transactions market in Sierra Leone is experiencing significant growth due to increasing demand for housing, the development of gated communities and affordable housing options, improved political stability, and positive macroeconomic factors. These trends and special circumstances are driving the growth of the market and attracting both local and foreign investors.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.