Trends and Opportunities in Corporate Accommodation Development in Africa

While in broad terms industrial real estate has been the best performing and most resilient property sub-sector in recent years, real estate developers that provide premium quality corporate accommodation developments offer high returns. Experienced providers of corporate accommodation developments can still provide lucrative investment properties for investors in a range of countries in several African regions.

The global real estate landscape is undergoing transformative changes, with rapid urbanization and demographic shifts paving the way for substantial potential growth. Despite the effects of the Covid pandemic and the ongoing war in Ukraine causing increased unemployment rates across the continent, an upturn in opportunities for investments in the real estate industry is expected to continue. The effect of underlying global trends on regional and national markets in Africa should, however, be kept in mind.

Many multinational businesses are looking for premium corporate accommodation developments to improve their talent retention in the face of stiff competition for talented staff. Multi-nationals are also being challenged to meet more stringent Environmental, Social and Governance (ESG) requirements. According to research, Africa has in the region of 785 green-rated buildings, of which 641 are in South Africa alone. As a point of reference, the United States has over 81,000 green-rated buildings.

The Growth in Urban Populations

Cities in rapidly growing regions across Asia, Africa, the Middle East, and Latin America are experiencing significant population surges as even developed Western nations experience increases in their urban populations. Shifts in population are driving changes in the demand for real estate. These rapid demographic changes are fundamentally altering the real estate landscape in Africa. Growing African middle-class urban populations will require substantially more housing and this in turn drives the need for projects that support the new urban populace. Corporate accommodation developments for companies that service the growing body of consumers. Industrial facilities that support the provision of infrastructure for new urbanites and retail space for the sale of consumer goods will be required.

Investment levels in African real estate are comparatively low on a global scale, and while considerable challenges exist, there are many potentially lucrative development opportunities on offer including corporate accommodation developments. With a good understanding of African dynamics and an experienced and skilled development partner, investors can make informed decisions and navigate the ever-changing real estate landscape in Africa profitably.

Invest with Experienced Property Developers in Africa

Gateway Real Estate Africa (GREA) knows exactly what it takes to present a successful corporate accommodation development in Africa. To maintain high levels of occupancy, modern, premium-grade space that is ESG-compliant and sustainable must be provided. The Acacia Estate, located in Maputo, Mozambique, is a prominent corporate accommodation development that encompasses a 76-unit luxury housing complex. This complex is exclusively occupied by long-term commercial tenants, including the United States Government and the French oil and gas company, Total, which assumed Anadarko’s interests in Mozambique in September 2019. The development, boasting a total site area of 23,242 square meters and a gross building area (GBA) of 19,203 square meters, was initiated in 2014 and efficiently maximizes its space utilization with a remarkable efficiency ratio of 96%. With 170 parking spaces, this development caters to the specific needs of its esteemed tenants, offering a comfortable and modern living environment tailored to their unique requirements. In October 2020, GREA enhanced its stake in the Acacia Estate, securing a 46.6% ownership through strategic acquisitions from external third parties and Grit Real Estate Income Group Limited, further solidifying its presence in this corporate accommodation venture. The development was successfully completed in October 2016.

GREA, the development arm of Grit Real Estate Investment Group, is the largest income-focused real estate group across Africa. We specialize in creating customized turnkey projects in various African countries offering attractive, high-yield, investment opportunities in African real estate. We are an award-winning developer with a portfolio of many successfully completed projects. Our various developments highlight our expertise and capability. Explore investment opportunities in corporate accommodation development in Africa by contacting us today.

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