What to Know About Activities, Opportunities in W/Africa Real Estate Market
Unknown to many, West Africa has a thriving real estate market driven not by the one that calls itself the big brother in the sub-region but by others who invest in infrastructure and maintain friendly land administration as reflected in their property registration process and cost. Over the years, a lot has been happening in this sub-region. Remarkable activities have been recorded within this period as captured in a new report compiled by Northcourt Real Estate which took painstaking views of the markets in the various countries and compiled same in a groundbreaking report launched in Lagos recently. Northcourt is a real estate valuation, consultancy, and marketing firm that has garnered reputation for its unwavering interest in research and data gathering that have, at various times, aided and guided real estate investment and homeownership decisions in Nigeria and beyond.
According to the report whose unveiling was witnessed exclusively by select members of the media and investment community, real estate market in West Africa is a mixed bag. It explains that while some markets have become powerhouses, regardless of the global shocks, others are flickers of light, dancing in the wind.
“The sub-region occupies 3.4 percent of the habitable area around the world and 5.2 percent of the world population. Its annual GDP is an estimated $725 billion—about 0.75 percent of the global economy,” the report notes. In the context of local and foreign investment activity, there are opportunities worthy of consideration. Whether it’s Dangote’s $19 billion refinery in Lagos, Nigeria (5th largest in the world), the Wilmotte & Associés Architects-designed UN House in Diamniadio, Senegal or the 22,700 square meter Niger Ministry of Finance building located in Niamey, these projects appear to have reclassified investment managers into two classes.
These are those who understand the region, and those who are trying to. Property prices vary, according to Ayo Ibaru, Northcourt’s CEO, who explained to BusinessDay at the weekend that, in select nodes, the average annual rentals for prime 3-bed apartments in Lome, Monrovia, and Banjul go for $5,850, $3,850, and $3,244 respectively, adding these prices are benefiting from a renewed investment in infrastructure. “Heavy hitters, including Lagos, Abidjan, Freetown, Accra, and Nouakchott come in at $32,200, $27,429, $26,200, $17,515, and $14,453. But the assets in demand typically skew towards the high end. Average land prices based on the nodes reviewed range from Bissau and Banjul’s $29 and $33psm pricing to Lagos, Abidjan, and Dakar’s $765 per square meter, $601 per square meter, and $273 per square meter respectively,” Ibaru added.
The United Nations World Trade Organisation (UNWTO) forecasts that the number of tourists visiting African countries will reach an estimated 134 million by 2030. Part of the growth is due to the rising interest in Cabo Verde with its Santa Monica Beach being one of the top 25 beaches in the world. The White Sands Hotel & Spa is an ongoing 5-star development comprising 835 hotel suites. The Gambia’s adoption of modern business regulation tools as part of its open regime for investment and Benin Republic’s reforms favoring land security, deposit, and rent regulations are other attempts. The Mauritania military engineering corps signed a $22 million contract to construct a 10km road and a bridge across the Senegal River. Côte d’Ivoire’s housing deficit stands between an estimated 450,000 and 670,000 and could benefit from Ghana’s housing development incentives where the government offers free land and tax incentives. These offer good opportunities to yield-hungry investors.
Source: BusinessDay
