The Commercial Real Estate market in Eastern Africa is experiencing significant growth and development.
Customer preferences: Customers in Eastern Africa are increasingly looking for commercial real estate properties that offer modern amenities and facilities. They are seeking properties that are well-maintained, have ample parking space, and are located in prime locations with easy access to transportation and major business hubs. Additionally, there is a growing demand for commercial properties that can accommodate flexible working arrangements and provide a range of services such as co-working spaces and shared facilities.
Trends in the market: One of the key trends in the commercial real estate market in Eastern Africa is the rise of mixed-use developments. Developers are combining commercial, residential, and retail spaces in a single project to create vibrant and integrated communities. These mixed-use developments offer a range of amenities and services, attracting both businesses and residents. This trend is driven by the increasing urbanization in the region and the desire for convenience and accessibility. Another trend in the market is the growing interest from international investors. Eastern Africa is seen as an attractive investment destination due to its strong economic growth, improving business environment, and favorable demographics. International investors are particularly interested in commercial real estate properties in major cities such as Nairobi, Kampala, and Dar es Salaam. This influx of foreign investment is driving the development of new commercial projects and contributing to the overall growth of the market.
Local special circumstances: Eastern Africa has a young and growing population, which is driving the demand for commercial real estate. As the population increases, there is a need for more office spaces, retail outlets, and industrial facilities to support the growing economy. Additionally, the region is experiencing rapid urbanization, with more people moving to cities in search of better job opportunities. This urbanization trend is creating a demand for commercial properties in prime locations.
Underlying macroeconomic factors: The economic growth in Eastern Africa is one of the key factors driving the development of the commercial real estate market. The region has been experiencing steady economic growth, supported by investments in infrastructure, agriculture, and manufacturing. This growth is attracting both local and international businesses, leading to an increased demand for commercial properties. Furthermore, the improving business environment and government policies are also contributing to the growth of the commercial real estate market. Governments in the region are implementing reforms to attract foreign investment and make it easier to do business. These reforms include streamlining bureaucratic processes, improving infrastructure, and providing incentives for investors. As a result, more businesses are entering the market and driving the demand for commercial properties. In conclusion, the Commercial Real Estate market in Eastern Africa is experiencing significant growth and development. Customer preferences are shifting towards modern and well-equipped properties, while trends such as mixed-use developments and international investment are shaping the market. The region's young and growing population, along with the favorable macroeconomic factors and improving business environment, are driving the demand for commercial real estate properties.
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.
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