Tag Archives: nigeria
Africa’s growth cities attract increased foreign real estate investment
An increased numbers of international investors are investigating opportunities in African real estate markets, attracted by the continent’s startling economic and demographic growth prospects, it is claimed. According to a new Africa Report 2015 from international real estate firm Knight Frank, the population of Africa will quadruple to over four billion by 2100, with nearly one billion of these people in Nigeria alone. It argues that could be the single most important demographic trend that will shape the world over the course of this century and by 2100 nearly 40% of the world’s population will live in Africa, with the large majority of these being in the continent’s fast growing cities. Nigeria is now the largest economy in Africa with GDP estimated at $594.3 billion, followed by South Africa at $341.2 billion and overall Sub-Saharan Africa is one of the world’s most rapidly developing economic regions, and it is projected that 13 of 20 fastest growing global economies over the next five years will be in Africa. According to the report Luanda in Angola has one of the highest prime office rents in the world at US$150 per square meter per month, driven by demand from the oil and gas sector, and an extreme lack of availability. Luanda’s population is forecast to increase by more than 70% from 2010 to 2025 period, while Dar es Salaam, Kampala and Lusaka are expected to double. ‘Allied to strong economic growth, this is creating increased demand for good quality real estate of all types,’ the report says. It also points out that the retail sector has seen a huge increase in activity as a result of the rise of the urban middle class and the expansion of South African retailers such as Shoprite and Pick n Pay into the rest of Africa. Modern shopping malls are a relatively new concept in much of Africa, but a spate of new malls has been developed in key cities such as Accra and Nairobi. ‘The growth of Africa’s cities and economies will do much to define the global socio-economic landscape over the coming decades,’ said Matthew Colbourne, Knight Frank international research associate. ‘These major long term trends are driving the construction of high quality real estate across the continent. The most visible demonstration of this is the rise of the modern shopping centre concept in cities such as Nairobi, Lagos and Accra, but there are development opportunities in all property sectors,’ he explained. ‘Large volumes of good quality commercial and residential property are needed to support the continuing African growth story, presenting excellent opportunities for global funds looking to diversify or enter into African markets,’ he added. The report also points out that Africa’s growth potential has led to a notable increase in activity involving overseas investors and South African funds over the last two years. For example, Chinese investors’ involvement in large scale development and infrastructure projects across Africa has been particularly eye-catching…. Continue reading
Landlords of sought after lets in London getting 12 months rent in advance, research shows
Price may be falling in some parts of the prime London property market but new research shows that rich tenants are paying the entire cost of six or 12 month tenancies and deposits in advance in a battle to secure homes in London’s best addresses. A typical wealthy up front tenant letting a two bed flat in London's West End on a £3,500 per week let are willing to pay the landlord over £200,000 up front before moving in, according to the research from lettings firm E J Harris. Indeed in the first 10 weeks of 2015 it is estimated that over £100 million has been paid up front by affluent tenants, many of whom are part of a new breed from countries such as Russia, the Ukraine, China and Nigeria. The research suggests they are business people, socialites and students from very wealthy families and are able to pay anything from £9,000 to £10,000 per week on a luxurious residential property in London’s best addresses. In a normal year one in 10 tenants in the prime central London will typically pay their entire rent and deposit up front in order to secure the property they want, however this year this has jumped to one in five tenants. According to the firm this surge in up front rental payments since the start of 2015 reflects the current frenzy in the London lettings market as stamp duty and pre-election mansion tax concerns have turned vendors into landlords and buyers into tenants. The Central London £2 million to £20 million sales market has stalled and been replaced by a buoyant lettings market for properties within the same value range. The top 10 locations for up front rental payments are Mayfair, Belgravia, Knightsbridge, St James’s, Soho, Fitzrovia, Marylebone, Westminster, Chelsea and Kensington. The top London address for up front rental payments is Mount Street in Mayfair where over 80% of the tenancies are secured by up-front payments and the firm says that this is because the number of tenants seeking properties on Mount Street vastly exceeds supply. Mount Street is closely followed by Mayfair’s Dover Street, where 70% of tenancies are secured by upfront payments. This is followed closely behind by Eton Place in Belgravia, Trevor Square in Knightsbridge and St James’s square where over 60% of tenancies are secured by up-front payments. In Ward our Street in Soho, Charlotte Street in Fitzrovia, Cadogan Square in Knightsbridge and New Cavendish Street in Fitzrovia over 50% of the tenancies are done by up-front payments. ‘The dramatic rise in up front tenancy payments is driven by several factors. Stamp duty and mansion tax concerns has turned purchasers into tenants and so competition has risen for the best homes which has led to a rise in up front bids,’ said Elizabeth Harris, managing director of E J Harris . ‘Alongside this the London lettings market has become increasingly international with a new wave of wealthy tenants from Russia,… Continue reading
RICS continues its expansion into African property sectors
The Royal Institution of Chartered Surveyors is continuing with its expansion in Africa which will result in more property sectors attaining international standards. In November 2013 RICS committed to expanding in three key countries in Sub-Saharan Africa: Ghana, Kenya and South Africa. It is also creating regional RICS hubs in east, west and South Africa. On top of this the global real estate organisation commissioned research into property markets in Sub-Saharan Africa, concentrating on the major driver states of South Africa, Kenya, Ghana, Nigeria and Tanzania. It examines opportunities and challenges in their real estate markets. It found that Ghana is experiencing rapid urbanisation and a growing middle class, expected to reach 1.6 million people by 2030 according to projections by Standard Bank. ‘This presents obvious opportunities in real estate as the need for housing, retail and commercial space increases,’ the report says, adding that the country’s construction sector accounted for 9% of GDP in 2011 and is growing steadily The Ghana Institute of Surveyors (GhIS) is positive about the trajectory the country is taking, but has raised concerns like the need for more skilled professionals in the sector. The GhIS-RICS co-ordinator in Ghana, Rosemargaret Esubonteng, said that the needs of surveyors in Ghana range from access to resources such as relevant literature, modern equipment and software to gaining experience on particular projects. ‘Working together with other professional bodies on the creation and adoption of International Standards, having joint Continuing Professional Development programmes and networking events will enrich the professional experience and outlook of surveyors,’ Esubonteng explained. She also pointed out that the RICS qualification is recognised worldwide, and so enables members to work across markets. In Ghana, it is a passport to international surveying opportunities, subject to meeting the necessary standards of technical expertise and ethical behaviour. The reciprocal agreement allows GhIS members to interact more closely and personally with RICS and benefit from its knowledge base and programmes. Members of both organisations have the opportunity of sharing experiences and gaining deeper global insights, as well as explore prospects of building strong partnerships to bid for international contracts in the region and beyond. The report says that Kenya is fast establishing itself the destination of choice for organisations wanting to set up regional headquarters in East Africa and with huge amount of ongoing construction there is a need for international standards. RICS has had a presence in South Africa for years. The South African real estate market is relatively mature and the institution is working with professional bodies such as the South African Council for the Quantity Surveying Profession and the South Africa Property Owners Association. But the report explains that even as Africa's most mature real estate market, South Africa still faces a shortage of skilled engineers, especially in the public sector. RICS currently runs a Diploma in International Arbitration that provides comprehensive training in this subject and is tailored to the specific needs of the South African market…. Continue reading
