This resilience persists despite high interest rates and inflation, which are now stabilising.
According to the African Development Bank, Africa is projected to have 11 of the world's 20 fastest-growing economies in 2024, with East Africa anticipated to grow at 5.1% in 2024 and 5.7% in 2025.
Kenya has emerged as a standout market for property investment, while warehousing spaces in Côte d’Ivoire and Ghana catering to the agricultural sector have also performed well.
Niyi Adeleye, Standard Bank’s head of real estate finance for Africa, states that the pandemic did not significantly impact the demand for office properties in many African nations.
"Companies across the continent continue to encourage employees to collaborate more in the office with the flexibility of the hybrid working model as the complexity of most of these operating environments typically necessitated higher levels of collaboration to manage the volatility, uncertainties and ambiguities of activities in emerging markets and evolving sectors,” she said.
Real estate market resilience
Standard Bank's findings show that office rentals have remained resilient, as working from home is often less appealing due to connectivity issues and preferences for office culture.
Additionally, the retail sector is rebounding, with occupancy and foot traffic exceeding pre-pandemic levels in key African markets.
The industrial property sector has also maintained stability, with an increasing trend of companies renting custom-built spaces and engaging in sale-leaseback transactions.
Despite ongoing challenges, improvements in macroeconomic conditions position the sector for future growth.
