With urbanization of agglomerations, residential real-estate is full of opportunities is African the sub-Saharan region. Focus.
According to the UN-Habitat, Africa is the continent with the highest annual urban growth with approximately 3%. This urban growth contributed to the emergence and extension of slums in the large African agglomerations. Hence, the slums’ population went from 102 million to 213 million between 1990 and 2012.
Confronted to this reality, some countries such as South Africa and Ivory Coast opted for the mass building of free or cheap social housings, relating the markets to the private sector. This represents a huge potential as, theoretically, housing demands are almost unlimited as those who already have one are looking for a bigger and more comfortable housing, whereas those not owning one wish for a new one.
In its study about the construction industry’s perspectives, Oxford Economics reveals that till 2025, the worldwide construction market shall increase of 70%, going from $8700 billion to $ 15 000 billions. This, thanks to countries such as Nigeria. With its 177 million of inhabitants, it registers a deficit of almost 17 million of housings, according the Nigerian government’s estimations.
Thus, the real estate sector in Africa has naturally become a promising industry, boosting by the same occasion the concrete industry which also encounters a huge demand. The large cement groups like Lafarge (France) and Dangote Cement (Nigeria) are already working hard on the continent.
As for real-estate, the enterprises such as the Moroccan leader Addoha is working actively in sub-Saharan Africa. The group is also well known for its social housing programs destined to low-income households.