Wave Of Change For Africa’s Real Estate Market
The African continent is knee deep into a critically important 2017. While both real estate investors and occupiers have become accustomed to years of high growth rates, many times above global averages, the potential political and economic headwinds could lay the foundation for a new way forward for Africa’s largest economies.
This is according to Malcolm Horne, Group CEO for Broll Property Group, a commercial property services company, who says it is often in the diversity and complexity of a situation that the solution is to be found. “Faced with potentially turbulent times ahead, the journey will not be easy and decisions will often be very difficult at a political level. But, if the correct direction is chartered, Africa will remain a continent of diverse opportunity,” says Horne.
Speaking ahead of the 8th Annual Africa Property Investment Summit (API), which took place on 24 and 25 August 2017 at the Sandton Convention Centre in Sandton Centre, Horne revealed numerous new trends that are set to play an important role in reshaping Africa, and the potential opportunities for real estate investment in future.
Trump, Brexit And The Effects Of 2016 In 2017
2016 produced rather unexpected events like Brexit and Trump, and this impact is only now playing out in Africa, and will continue to do so for years to come. Sub-Saharan Africa also needs to deal with the dynamics of having its average growth rate being at least equal, if not less than the global average for the first time since 2001.
“From 2001 to 2008 Africa saw a growth rate of 5.9%, dropping to 4.1% from 2009 to 2016, and since 2013 a consistent average year-on-year decline has been recorded,” Horne continued. With regards to the retail sector, Horne said there are numerous new brands continually entering the African market. Most retailers are still adopting a wait and see attitude in countries that are affected by the current downturn in commodity prices.
Image courtesy of : Broll Property Group