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Invest and Make Money in Real Estate in Africa
Ghana, West Africa
How to invest and make money in real estate in Africa? You’re about to find out…
Just like food, water and clothing, shelter is one of the most basic human needs everywhere
in the world. It would be nearly impossible to survive on this earth without a roof over your
head. Everybody needs a home – a place that provides protection from harm and the
weather; a warm room to sleep and live in.
Despite the huge importance of shelter, Africa currently faces a serious housing crisis. The
shortage of suitable accommodation is pushing up rent and property prices in several cities
and towns across the continent, making it one of the hottest and most promising places in the
world for real estate investment.
The boom in Africa’s real estate market is a juicy opportunity for entrepreneurs to exploit and
become successful property owners. This article explores the reasons for this boom and why
you should invest in real estate in Africa.
What Is Causing The Real Estate Boom In Africa?
It is our usual tradition here on African Flavor Magazine to not only share interesting business
ideas and opportunities with you but to explore the reasons behind them. Knowing the
reasons why the real estate market in Africa is booming makes you a more informed
entrepreneur and allows you to take calculated risks and make better investment decisions.
#1 – Africa Is Experiencing a Huge Population Boom
The logic here is quite simple – the larger the population, the higher the demand for housing.
Africa’s population currently stands at over one billion and is expected to reach 2.4 billion in
just 40 years. Over this period, our continent will experience the fastest population growth in
any part of the world (including Asia).
2 bedroom 1 bath
Cost to build: $10,000
Sale price: $60,000
You do the math
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The 10 countries on earth with the
highest fertility rates are in
Sub-Saharan Africa where the average
woman gives birth to about five
children in her lifetime. In countries like
Niger, the birth rate is as high as
seven. (source: Population Reference
#2 – Millions of Africans are
moving to the cities
A significant proportion of the demand
for housing and real estate in Africa is
concentrated in the cities.
According to a report by the International Housing Coalition, only about 80 million Africans
lived in cities in 1983. Today, that number has risen to over 400 million. The size of Africa’s
urban areas has been growing at nearly 5 percent for the past two decades.
Going by the current estimates, 300 million more Africans will become city people and urban
dwellers by 2030.
A few reasons why Africa’s urban population is growing at such a high rate are its huge
population boom, and fast growing economy which is attracting more people to the cities who
are searching of job and business opportunities.
#3 – The Housing Problem is Too Big for the Governments
In many parts of the world, governments are responsible for providing basic and affordable
housing and accommodation for its people. In Africa, however, the governments are not doing
enough to solve the housing shortage problem.
In the continent’s most populated country for example, the World Bank estimates that over 16
million new houses need to be provided to solve Nigeria’s serious housing problem. The
estimated cost of providing these homes stands at a whopping $350 billion! That’s too much
for any one government to handle!
Investors from around the world are investing
in Africa, for profit and vacation homes
Cape Verde Islands, West Africa
As a result of government’s
inability to close the huge gap
between supply and demand for
housing in Africa, the pressure
from the large existing demand
is pushing up real estate prices
across the continent. As a
result, private investors,
entrepreneurs and ordinary
people like you now have a role
to play in solving the housing
#4 – Favourable Economic
In times of economic boom, more
people have the financial power
to invest in real estate. Although
there is still widespread poverty
in many parts of Africa, the
average income per person is
growing in many countries.
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