Commercial Real Estate - Burundi

Burundi

The Commercial Real Estate market market in Burundi is expected to reach a value of US$4.50bn in 2024.
It is projected to experience an annual growth rate (CAGR 2024-2029) of 5.06%, which will lead to a market volume of US$5.76bn by 2029.
When compared globally, the United States will generate the highest value in the Real Estate sector, with an estimated worth of US$25,280.0bn in 2024.
Despite its small size and limited resources, Burundi's commercial real estate market is experiencing steady growth due to increased foreign investment and infrastructure development.

Key regions: Europe, France, Japan, Brazil, Asia

Market

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Analyst Opinion

The Commercial Real Estate market in Burundi is experiencing significant growth and development in recent years.

Customer preferences: The demand for commercial real estate in Burundi is primarily driven by local businesses and international investors looking to expand their operations in the country. With a growing economy and increasing foreign direct investment, there is a rising need for office space, retail outlets, and industrial facilities. Additionally, the government's efforts to attract foreign investment through various incentives and reforms have further fueled the demand for commercial real estate.

Trends in the market: One of the key trends in the commercial real estate market in Burundi is the development of modern and sustainable buildings. With a focus on energy efficiency and environmental sustainability, developers are incorporating green building practices and technologies into their projects. This trend is driven by both customer demand for environmentally-friendly spaces and the government's commitment to promoting sustainable development. Another trend in the market is the rise of mixed-use developments. Developers are increasingly integrating commercial, residential, and recreational spaces within a single project. This trend is driven by the desire to create vibrant and self-sustaining communities where people can live, work, and play. Mixed-use developments offer convenience and accessibility, attracting both businesses and residents.

Local special circumstances: Burundi's geographical location and natural beauty make it an attractive destination for tourism and hospitality investments. This has led to an increased demand for commercial real estate in the hospitality sector, including hotels, resorts, and restaurants. The government's focus on promoting tourism and improving infrastructure has further contributed to the growth of this sector. Another special circumstance in Burundi is the presence of a large informal economy. Many businesses operate outside the formal sector, which creates unique challenges and opportunities for the commercial real estate market. Developers and investors need to understand the dynamics of the informal economy and tailor their projects to meet the needs of these businesses.

Underlying macroeconomic factors: The growth of the commercial real estate market in Burundi is supported by several underlying macroeconomic factors. The country has experienced stable economic growth in recent years, driven by sectors such as agriculture, manufacturing, and services. This has created a favorable business environment and increased demand for commercial real estate. Furthermore, the government's commitment to economic reforms and attracting foreign investment has created a positive investment climate. This has led to increased confidence among investors and a willingness to invest in commercial real estate projects. In conclusion, the Commercial Real Estate market in Burundi is experiencing significant growth and development, driven by customer preferences for modern and sustainable buildings, the rise of mixed-use developments, and the demand for commercial real estate in the tourism and hospitality sector. Local special circumstances, such as the presence of a large informal economy, and underlying macroeconomic factors, including stable economic growth and government reforms, further support the growth of the market.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.