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The growth of Africa’s cities creates a demand for increased volumes of high-quality commercial and residential real estate.
The real estate market has seen a positive change over the years, and this is because of the technological progress that makes business more efficient and convenient. Due to the advancement in technology, for instance, real estate marketing was upgraded, and homebuyers do now have a broader choice when it comes to buying properties. Africa is less developed, and there is a general lack of infrastructure compared to the developed countries. There is currently an infrastructure boom across the continent. This is driving the growth of the whole Real Estate package as Africa cities grow, creating commercial and residential real estate opportunities. That’s why if you’re into real estate business, it will be to your advantage to know what’s the latest in technology to keep up with the business competition. For a little help, here are the trends in technology that are making a buzz in the real estate industry in 2020.
Human-machine collaborations
Increasingly, there’ll be a hybrid between the human reassurance of estate agents with the data-driven expertise of machines. This will eliminate admin and paperwork and up efficiencies, enabling a seamless client experience.
The rise of second-tier cities
Known as second-tier cities, metropolises outside the capitals will experience exponential growth as corporations move to more affordable locales. In turn, this will see the urban populations in these cities grow as families opt for locations that offer residential real estates that are close to work, schools, and social spaces. Places like Gaborone in Botswana are low risk and growing; thus, you can blindly invest in real estate in this area. Namibia is a low risk, but the returns are most moderate. Zambia has excellent medium to long term potential as does Mozambique (especially among the thousands of km of tropical coastline).
Generational shifts
PwC’s report indicates that the middle classes are set to grow by 180% by the year 2040, primarily driven by millennials and Generation Z. Both generations are riddled with student debt, so smaller spaces and affordability will be critical to their real estate plans, especially in the current harsh economic climate. Nigeria has more money than anyplace, but for outsiders is a quagmire. West Africa, in general, is suffering from poor governance and blow-everyone-up Islam.
Technology enhancement
Mali, Eastern Niger, Northern Cameroon, Chad, and Bornu state in Nigeria are warzones — lots of French military activity; the most significant mobilization of French troops since WW2. Central Africa, CAR, DRC, Rwanda, Burundi are in a real mess. But technological improvement, such as e-platforms like Live Vend, is seen in Africa, which would be a benefit in the long term.
Sustainability
As urban populations increase, sustainability is becoming more of a challenge. The Food and Agriculture Organization of the United Nations reports that the world will require 50% more energy, 40% more water, and 35% more food to sustain the population in 2050. This impacts significantly on the real estate market, where home buyers are looking for a property that is based on eco-friendly principles and includes renewable energy and waste-reduction technology. Five (Angola, Nigeria, Egypt, Mozambique, South Africa/Kenya) African countries that offer the most significant investment opportunities in real estate. Real estate remains a booming opportunity for Africa-focused investors for good reasons. The growth of Africa’s cities creates a demand for increased volumes of high-quality commercial and residential real estate
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