Over the last
year changes in Africa’s regulatory environments, coupled with constant swings in
commodity prices as well as heightened political and economic tensions, have resulted
in ongoing volatility in the continent’s real estate markets. Despite this, fundamental
demand-supply imbalances continue to present a largely attractive long-term
investment outlook and thereby drive demand for real estate investment
opportunities. As a consequence, there has been significant interest from both
domestic and international investors as well as some – albeit marginal – growth
noted in the market during this period.
“This growth points
to an evolution in the continent’s real estate sector as well as to the urgent
need for investors in this space to adapt their approach in line with this
evolution and to seek out more economically sustainable ways to participate
effectively in these markets,” according to Niyi Adeleye, Head of Real Estate
Finance for Africa Regions at Standard Bank.
volatility which Africa’s economies are generally subject to, more patient,
long-term strategies for delivering value also need to be adopted and thorough
market research, conducted as well as ‘Fit for Purpose’ solutions, applied.
‘one-size-fits-all’ approach does not work in Africa and it is crucial that
sufficient time and resources are put into understanding the vast and varied
markets that call the continent home.
traditional private equity funding model …read more