Commercial Real Estate - Western Africa

Western Africa

The Commercial Real Estate market market in Western Africa is anticipated to achieve a significant milestone, with a projected value of US$0.58tn in 2024.
This forecasted growth is expected to continue with an annual growth rate (CAGR 2024-2029) of 3.23%, leading to a market volume of US$0.68tn by 2029.
When examining the global landscape, it is worth noting that the United States is projected to generate the highest value in the Real Estate sector, estimated at US$25,280.0bn in 2024.
In Western Africa, the commercial real estate market is experiencing significant growth due to increasing 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 Western Africa has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Western Africa are increasingly looking for modern and well-equipped commercial spaces that can cater to their specific business needs. They are seeking properties that offer flexible lease terms, ample parking facilities, and access to essential amenities such as transportation and retail outlets. Additionally, there is a growing demand for commercial spaces that incorporate sustainable features and promote environmental consciousness.

Trends in the market: One of the key trends in the Commercial Real Estate market in Western Africa is the rise of mixed-use developments. These developments combine commercial, residential, and retail spaces in a single complex, creating a vibrant and integrated environment. This trend is driven by the desire for convenience and efficiency, as businesses can operate in close proximity to their target customers, while residents can enjoy the convenience of having essential amenities within walking distance. Another trend in the market is the increasing focus on technology and innovation. The adoption of smart building technologies, such as energy management systems and automated security systems, is becoming more prevalent in commercial properties. These technologies not only enhance the overall efficiency and sustainability of the buildings but also provide a more secure and comfortable environment for tenants and customers.

Local special circumstances: Western Africa is a region with diverse economies, each with its own unique characteristics and challenges. Some countries in the region, such as Nigeria and Ghana, have experienced rapid urbanization and population growth, leading to a higher demand for commercial spaces. On the other hand, countries like Sierra Leone and Liberia are still recovering from years of civil unrest and may present different opportunities and challenges in the Commercial Real Estate market.

Underlying macroeconomic factors: The development of the Commercial Real Estate market in Western Africa is influenced by several macroeconomic factors. Economic growth, stability, and government policies play a crucial role in attracting both domestic and foreign investments in the sector. Additionally, infrastructure development, including transportation networks and utilities, is essential for the growth of the market. The availability of financing options and access to capital also impact the development of commercial properties in the region. In conclusion, the Commercial Real Estate market in Western Africa is witnessing significant growth and development driven by customer preferences for modern and well-equipped commercial spaces. The rise of mixed-use developments and the adoption of technology are key trends in the market. Local special circumstances, such as urbanization and recovery from civil unrest, present both opportunities and challenges. The underlying macroeconomic factors, including economic growth, stability, government policies, and infrastructure development, are crucial in shaping the market's trajectory.

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.