Top Reasons to Invest in Commercial Property in Africa
Commercial property investments in Africa are taking off because of the potential for Fortune 500 and related companies requiring office space for their expanding business endeavours in Africa. In addition, the rapid urbanisation on the continent, a fast-growing middle-income group and renewed interest in tourism-related activities, are grounds to invest in commercial property developments on the continent.
From A-grade centrally located office spaces to retail centres that cater to the shopping needs of urban dwellers, the demand for prime retail and commercial property investments are on the increase.
Development and investment opportunities differ from country to country, and sometimes according to the regions within the country. Investing in these developments is not without risk and the developments also come with their fair share of challenges. For one, skilled labour may not always be available, road infrastructure can be limited, and it can be difficult to acquire resources to the places where developments must take place.
To this end, it’s imperative to work with experienced commercial property developers on the continent along with an investment group that has international credibility and a proven track record of providing superb return on investments.
Such a real estate investment group will have a comprehensive portfolio, the required expertise to manage risks, and project managers to minimise risks for the client. The group will have in-depth knowledge of the economic and political stability of a region, the demand for offices and retail space, as well as the building regulations and challenges relevant to the country, city and type of development.
In addition, responsible developers will pay cognisance to community consultation prior to commencing with construction, including local job creation and local procurement initiatives. Comprehensive environmental and community impact assessment studies will also be paramount for these developers, with a strategy to improve the node where the development is located.
Countries that are attractive for commercial property investments range from Kenya and Ghana to Nigeria. For one, Nigeria has a large consumer market with property developments mainly focussed on major and thriving urban centres. It provides many opportunities to tap into the USD rental ROI as a result of the high demand for prime office space in urban areas. The country also has a fast growing middle-class to support retail.
Ghana is also gaining international interest, with smart cities such as Appolonia, greater Accra’s award-winning inclusive mixed-use new city, being one of the hot spots for commercial developments.
With ongoing investments in the infrastructure development of selected African countries, companies interested in developing their property investment portfolios will benefit from identifying the countries where such developments are thriving.
GRIT Real Estate Investment Group offers investors expertise in terms of development portfolios and GREA manages development projects on behalf of clients. Adumuah Place is an example of an A-Grade commercial complex development recently completed by GREA. The complex is located in Appolonia City, Accra, Ghana and consists of both retail space and offices. The development has an efficiency ratio of 82%, a GBA of 2,414 m² and GLA of 1996 m² with 85 open parking bays.
Qualifying companies looking to expand their business operations to Africa or wanting to ensure they achieve solid ROI on their commercial property investments on the continent, can get in touch with GREA to discuss the many opportunities on offer. Contact GREA at +230 260 0524 or send an email at email@example.com for more information.