Like most places in the world, Africa was adversely affected by the global financial crisis. But as economies pick up, there are many opportunities to invest in the southern part of the continent. Here are some that are starting to attract the attention of overseas property investors.
Durban
The third largest city in South Africa, Durban is thought to be well placed to benefit from worldwide economic revival. Particularly with the recent appointment of Cyril Ramaphosa as president bring a new optimism to the country.
With a strong infrastructure featuring the Port of Durban (the largest in Africa), the Dube Trade Port, King Shaka International Airport and an extensive road network, Durban also has an abundance of vacant land for development available at reasonable prices.
Commercial property investment hotspots like Springfield, Riverhorse Valley, Briardene, Morningside, Mount Edgecombe, Westville, Berea and Umhlanga, are also likely to lead to increased residential property demand.
Harare
The capital of Zimbabwe should benefit as the country emerges from recent years of political turmoil, and the property market will be first in line.
Demand is already increasing for commercial space, and residential property will naturally follow.
Abuja
Nigeria is Africa’s largest economy, and the capital of Abuja best placed to benefit as the country embarks on economic recovery. Rapid population growth in the city is already driving a strong demand for residential property as people flock to the city for newly created jobs. Rental demand therefore will be strong.
Walvis Bay
Windhoek may be the official capital of Namibia, but Walvis bay is widely regarded as the country’s industrial and logistical hub. This status positions the city’s commercial property sector for growth, with the areas around key infrastructure such as the new container terminal and north port, the airport, the CBD and the Dunes mall. Commercial property growth will lead to an increase in residential property demand.
Mombasa
Again, not the capital of Kenya, but the famous trading city of Mombasa is currently benefitting from a surge of infrastructure investment, including the completion of a standard gauge railway between Nairobi and Mombasa, and the establishment of a Mombasa-Nairobi highway dualisation project.
These major developments and the trading history of Mombasa make the city ripe for growth in the industrial, retail, and residential property markets.
For overseas property investors interested in Africa the rewards can be great, but also the risks. It pays to do full research and employ local experts on any transactions.
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