The Prospects for Commercial Development in Africa

The commercial real estate market in Africa is shaped by a multitude of factors, including the local and regional economies, population growth, interest rates, and government policies. The prices of commercial real estate may vary significantly based on factors such as location, property type, and local economic conditions. Some countries have regulatory bodies overseeing the commercial real estate market, establishing rules for property transactions. The real estate market serves as a barometer of overall economic health in a country or region. The quantity and quality of commercial development occurring affects employment rates, consumer confidence levels, and accessibility to finance.

The Effect of E-Commerce and Remote Work on Commercial Development

E-commerce has surged in popularity, while the COVID-19 pandemic has accelerated the number of personnel working remotely. This has altered the demand for different types of commercial development. These factors have resulted in warehouse and fulfilment centre spaces to support online operations becoming more sought after and have also led to increased demand for smaller, more flexible office spaces as companies look for more adaptable work solutions. The need for more flexible work arrangements has fuelled a rise in the popularity of co-working spaces, and a need for shared workspaces for individuals and companies.

Making Commercial Development Sustainable

Modern real estate developers are experiencing a growing emphasis on the sustainability of the projects they deliver. Sustainability has become an essential requirement for commercial real estate buyers and investors. Energy-efficient properties, with low carbon emissions using sustainable materials, are highly sought after. Successful developers need to provide sustainable developments that combine environmentally friendly practices, social equity, and economic viability.

Encouraging mixed-use developments where commercial spaces, residential areas, and recreational facilities coexist, reduces the need for long commutes and promotes a sense of community. The reduction in the need for getting multitudes of commuters to and from work each day significantly reduces the carbon footprint of the development. Situating commercial developments near public transportation hubs encourages those who do need to travel, to use public transit, as opposed to private cars, decreasing emissions.

By implementing and enforcing green building codes, developers ensure that new commercial buildings meet environmental standards with respect to energy efficiency, water conservation, and the use of sustainable construction materials and practices. Encouraging the adaptive re-purposing of existing buildings instead of demolishing and constructing new ones not only reduces waste and eliminates the carbon costs of new materials, but also preserves the cultural heritage of the development precinct.

Developers that provide energy-efficient lighting, heating, cooling, and appliances in commercial buildings reduce energy consumption and deliver developments with low operating costs. Integrating smart technologies, such as occupancy sensors and efficient heating and cooling technologies, optimizes resource use and enhances overall facility efficiency.

Effective recycling and waste management programs in commercial developments minimize landfill waste and encourage businesses to adopt sustainable practices. Designing commercial developments that are resilient to climate change risks, such as rising sea levels or extreme weather events, ensures their long-term viability protects against future damage and economic losses.

An Award-winning African Developer Who Understands Sustainability

Gateway Real Estate Africa (GREA) was established to address the demand from multinational companies for premium quality property developments on the African continent. A shortage of experienced, competent, real estate developers who could deliver world-class commercial developments in Africa provided the incentive for the creation of GREA.

GREA  has since established a reputation for delivering premium quality, turn-key, construction solutions including modern state-of-the-art developments in all sectors of the real estate market in Africa. We are a multi-award-winning company that consistently provides select investors with high-yielding, US-dollar-denominated property investments. We provide properties that appeal to socially conscious investors who are interested in not only good financial returns but also want positive environmental and societal outcomes. If you’re interested in investing in rewarding African real estate, contact us today.

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