Commercial Real Estate - Sierra Leone

Sierra Leone's Commercial Real Estate market market is expected to reach a value of US$5.95bn in 2024.
This projection indicates an annual growth rate (CAGR 2024-2029) of 8.33%, leading to a market volume of US$8.87bn by 2029.
When compared globally, the United States is anticipated to generate the highest value in the Real Estate sector, amounting to US$25.3tn in 2024.
Sierra Leone's commercial real estate market is experiencing a surge in demand due to increased foreign investment and infrastructure development.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Sierra Leone is experiencing significant growth and development.

Customer preferences: In Sierra Leone, there is a growing demand for commercial real estate properties, particularly in urban areas. Customers are increasingly seeking modern and well-designed office spaces, retail outlets, and industrial facilities. They are also looking for properties that offer convenient access to transportation networks and amenities such as parking facilities. Additionally, there is a rising interest in mixed-use developments that combine commercial and residential spaces, as they provide a more integrated and convenient lifestyle for residents.

Trends in the market: One of the key trends in the commercial real estate market in Sierra Leone is the increasing investment from both local and foreign investors. This is driven by the country's improving economic stability and the government's efforts to attract foreign direct investment. As a result, there has been a surge in the construction of new commercial buildings and the renovation of existing properties. This trend is expected to continue as the government continues to implement policies that support business growth and development. Another trend in the market is the rise of coworking spaces and flexible office solutions. With the growth of startups and small businesses in Sierra Leone, there is a demand for affordable and flexible office spaces that can accommodate their changing needs. Coworking spaces provide a cost-effective solution and offer a collaborative and dynamic working environment. This trend is expected to continue as more entrepreneurs and freelancers enter the market.

Local special circumstances: Sierra Leone has a unique set of circumstances that contribute to the development of the commercial real estate market. The country has a young and growing population, which creates a demand for commercial spaces to cater to their needs. Additionally, Sierra Leone is strategically located on the West African coast, making it an attractive destination for businesses looking to expand their operations in the region.

Underlying macroeconomic factors: The development of the commercial real estate market in Sierra Leone is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, driven by sectors such as mining, agriculture, and tourism. This has resulted in increased business activity and the need for commercial spaces to support these industries. Furthermore, the government has implemented reforms to improve the ease of doing business and attract foreign investment, which has further stimulated the growth of the commercial real estate market. In conclusion, the commercial real estate market in Sierra Leone is experiencing significant growth and development. This is driven by customer preferences for modern and well-designed commercial spaces, as well as the increasing investment from both local and foreign investors. The rise of coworking spaces and flexible office solutions is also a notable trend in the market. Sierra Leone's unique circumstances, such as its young and growing population and strategic location, contribute to the development of the market. Additionally, underlying macroeconomic factors, such as steady economic growth and government reforms, further support the growth of the commercial real estate market in Sierra Leone.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.