Mauritius makes it to list of top 15 real estate hotspots in Africa with Port Louis
The island economy’s capital city of Port Louis commands 14th place in the African Prime Rent Ranking, compiled by global real estate consultancy Knight Frank for its Africa Report 2015. (Image: Sage of travel)
Mauritius has made it to the top 15 real estate hotspots in Africa, with the capital city of Port Louis commanding 14th place in the African Prime Rent Ranking, compiled by global real estate consultancy Knight Frank for its Africa Report 2015.
According to the report, the top ten places for realty are taken by the African cities of Luanda (Angola), followed by Lagos and Abuja (both in Nigeria), Malabo (Equatorial Guinea), Libreville (Gabon), Kinshasa (DR Congo), Cairo (Egypt), Algiers (Algeria), Maputo (Mozambique) and Accra (Ghana).
Besides, N’Djamena (Chad) as well as Johannesburg and Cape Town (both in South Africa), form the rest of the list before Mauritius makes an entry with Port Louis.
Overall, the report proves that the tremendous opportunities in the African real estate market are no more a secret, the world has woken up to the reality of African realty and this created a spur for international investment opportunities for this segment, given its gigantic economic and demographic growth prospects.
The Africa Report 2015 from global real estate consultancy Knight Frank notes: “the rapidly growing economies of Africa are catching the attention of increased numbers of property investors and corporate occupiers. Africa is no longer viewed as a region of long term economic distress, but is increasingly seen as a continent of opportunity.”
The population of Africa is estimated to quadruple by 2100 to reach more than 400 billion people, therefore alerting the world to the tremendous demographic trend that will shape the world, against the slowdown in population growth in other global regions.
Africa is beyond everything, a macro growth story, as there are opportunities across the emerging continent for the development of well-located, well-planned properties suited to local market demand as Sub-Saharan Africa grow in importance on the global stage.
The growth of Africa’s cities is creating a need for increased volumes of good quality commercial and residential real estate of all types.
As and when there are huge real estate developments such as the Accra Mall, a first for Ghana in terms of modern shopping malls in 2008, their success develops confidence in other investors and leads to further related property developments, with the larger West Hills Mall opening in Accra in late 2014.
Figures show that prime office rents in Luanda, Angola, are among the highest in the world at USD 150 per sq m per month and Luanda is expected to grow by more than 70% during the period from 2010-2025.
A more prominent example is RMB Westport, affiliated to Rand Merchant Bank, whose Real Estate Development Fund was closed in 2012, having raised US$250 million, and is involved in office and retail projects in Angola, Ghana and Nigeria. Other South Africa-based investors targeting the rest of Africa include Sanlam, Stanlib, Atterbury, Resilient, Ivora Capital, Delta International and Novare.
By global standards, most property investment markets in Africa are opaque and small. The exception is South Africa, which is by far the continent’s largest and most mature market.
Other Sub-Saharan markets are now attracting increased interest from international investors, but the most noteworthy flow of capital in recent years has been from South Africa into the rest of the Sub-Saharan region as a growing number of funds have been established by South African investors targeting the rest of the continent.
The largest economy in Africa is Nigeria with GDP estimated at $594.3 billion, followed by South Africa at $341.2 billion. Overall, Sub-Saharan Africa is one of the world’s most rapidly developing economic regions, and it is projected that 13 of 20 fastest growing global economies over the next five years will be in Africa.
Corporate Profile of Knight Frank:
Knight Frank is the leading independent, global real estate consultancy providing an integrated prime commercial and residential offering, operating in key hubs across the globe.
Knight Frank provides the highest standards of quality and integrity in global residential and commercial property advisory services. Founded in 1896 and a Limited Liability Partnership (LLP) since 2003, the firm’s 63 Equity Partners promote progressive growth through a strong corporate culture, helping us to recruit and retain the best people.
Advising clients ranging from individual private investors, clients and homeowners to major developers and investors, we put teamwork, innovation and our passion for property at the heart of everything we do, striving to go the extra mile to exceed our clients’ expectations.