Real Estate Building the future of Africa - PwC

March 2015

Real Estate Building the future of Africa

It would be easy to underestimate the impact of global megatrends on Africa. After all, Africa's real estate markets have traditionally lagged behind developed and many developing economies. However, our research suggests the impact of global megatrends on Africa will be huge. In this report we consider their impact on the African continent.

pwc.co.za/realestate

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Contents

Foreword

2

Section 1 Real Estate 2020: Building the future

3

Section 2 Building the future of Africa ? Drivers for real estate growth

12

Section 3 Country analysis

37

Country profiles:

Nigeria

40

Kenya

44

Ghana

47

South Africa

51

Angola

55

Mozambique

58

Tanzania

61

Namibia

64

Mauritius

67

Zambia

71

References

74

Acknowledgements and recognition

83

Contacts

84

PwC

Foreword

2

Building the future of Africa

Global megatrends, such as rapid urbanisation and demographic changes, will lead to substantial growth in the global real estate industry over the next five years. Opportunities in the industry will surge, as will assets invested in the sector. These are some of the major findings of PwC's Real Estate 2020: Building the future report. But how will these megatrends impact the hugely diverse sub-regional and national markets on the African continent?

It would be easy to underestimate the impact of global megatrends on Africa. After all, Africa's real estate markets have traditionally lagged behind developed and many developing economies. Levels of investment in real estate in Africa are low by a global standard, while significant challenges exist in exploiting potential opportunities.

However, our research suggests the impact of global megatrends on Africa will be huge. In this report we consider their impact on the African continent. Our objective is to provide an assessment of the current state of the real estate industry across Africa and demonstrate how megatrends will drive growth opportunities in key African markets.

The report also considers the real estate market in 10 selected countries in sub-Saharan Africa. These country profiles provide insight into local, regional and global influences on the real estate markets of individual countries, providing an illustration of impacts of trends being felt at a national level.

We hope our report will provide insight into the real estate market in Africa and help to identify some of the opportunities, risks and rewards encountered by investors in African real estate.

Ilse French PwC Africa Real Estate Leader

Section 1

Real Estate 2020: Building the future

During March 2014, PwC released Real Estate 2020: Building the future, a report which highlights global trends and makes certain predictions about the real estate industry up to 2020. Some of these global trends are already evident in the African real estate industry, while others will only start to appear in the future.

The six predictions that the Real Estate 2020: Building the future report made for 2020 and beyond are:

? The global investible real estate universe will expand substantially, leading to a huge expansion in opportunity, especially in emerging economies;

? Fast-growing cities will present a wider range of risk and return opportunities;

? Technology innovation and sustainability will be key drivers for value;

? Collaborating with governments will become more important;

? Competition for prime assets will intensify further; and

? A broad range of risks, including new risks, will emerge.

PwC

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