Over the past few years, Africa’s economic turbulence has not passed by but several countries have been stimulated by dynamic developments which have created interesting opportunities for would-be investors.
Cushman & Wakefield Excellerate’s Marina van der Walt has rounded up the southern African cities which are currently attraction the right kind of attention.
Leading the way is Durban. The optimism grabbing the country in wake of the newly-elected President, Cyril Ramaphosa sits well with investors. But why is Durban better placed than the other major cities to benefit?
According to Marina, together with infrastructure such as the Port of Durban, the Dube Trade Port, King Shaka Zulu and an extensive road network, these all make for exciting opportunities, especially in commercial property investment hot spots like Springfield, Riverhorse Valley, Briardene, Morningside, Mount Edgecombe, Westville, Berea and Umhlanga.
Going north, Marina recommends keeping an eye on Zimbabwe’s Harare. Emerging from a period of significant political change, the positive impact on the economy has had a ripple effect its property market. This has manifested in an increase in demand for Harare’s industrial, retail and commercial space and the CBD, Borrowdale and Avondale, have been identified as likely growth spots along with the new industrial area north of the city and decentralised, suburban office parks.
Namibia has established itself as one of the strongest emerging economies internationally. Walvis Bay is at the centre of its growth and widely regarded as the country’s industrial and logistical hub. This positions the city’s commercial property sector for excellent growth with the areas around key infrastructure (such as the new container terminal and north port, the airport, the CBD and the Dunes Mall) expected to display solid performance.
Nigeria ranks as Africa’s largest economy so it is not surprising that the capital, Lagos, is anticipated to deliver solid returns. There are conditions though; the performance of the city’s property sector is closely linked to that of its economy which took a direct hit in recent years. A full economic recovery is expected once the commodities market strengthens and pundits predict that this will catalyze a property boom. In Abuja, rapid population growth continues to drive strong demand for property, particularly in the residential sector. This has a knock-on effect for office and retail space.
Mombasa is Kenya’s trade hub and it is currently experiencing a growth spurt. This is met by a flurry of infrastructure development including the completion of a standard gauge railway between Nairobi and Mombasa and the establishment of a Mombasa-Nairobi highway dualization project which is set to break ground this year. Both projects are expected to stimulate the demand of retail and industrial property.
Another property investment destination worthy of consideration would be Daar Es Salaam. The discovery of oil and gas has spurred the growth of Tanzania’s economy. With the agricultural and manufacturing sectors reflecting a positive trajectory. This is driving demand for property in areas such as the CBD, the Peninsula and the New Bagamoyo Road.
“It’s an exciting time for property investors willing to explore the opportunities represented by the African continent,” van der Walt concludes.
Read the full report here.