Residential Real Estate - Africa | Statista Market Forecast

The Residential Real Estate market market in Africa is forecasted to attain a value of US$13.97tn by the year 2024.
It is anticipated to exhibit a compound annual growth rate (CAGR 2024-2029) of 6.02%, leading to a market volume of US$18.72tn by 2029.
In terms of global comparison, China is expected to generate the highest value in the Real Estate sector, amounting to US$112.9tn in 2024.
In Nigeria, the residential real estate market is experiencing a surge in demand due to population growth and urbanization.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Africa has been experiencing significant development and growth in recent years. Customer preferences in the African Residential Real Estate market are largely driven by the increasing urbanization and rising middle-class population. As more people move to cities in search of better job opportunities and improved living standards, the demand for residential properties has been on the rise. Additionally, there is a growing trend towards modern and well-designed properties that offer amenities such as security, recreational facilities, and proximity to essential services. One of the key trends in the African Residential Real Estate market is the emergence of gated communities and housing estates. These developments offer a sense of security and community, which is particularly appealing to families and individuals looking for a safe and comfortable living environment. The demand for such properties has been fueled by the desire for a higher quality of life and the need for a sense of community. Another trend in the market is the increasing popularity of affordable housing solutions. With a large portion of the population falling within the low to middle-income bracket, there is a growing need for affordable housing options. Developers and investors are recognizing this demand and are focusing on providing affordable housing solutions that cater to the needs of this segment of the market. Local special circumstances in the African Residential Real Estate market can vary from country to country. In some countries, there may be specific regulations and policies that impact the market, such as restrictions on foreign ownership or limitations on land use. Additionally, political stability and economic growth can also have an impact on the market dynamics. It is important for investors and developers to understand the local special circumstances in order to make informed decisions and navigate the market effectively. Underlying macroeconomic factors play a significant role in the development of the African Residential Real Estate market. Economic growth, population growth, and urbanization are key drivers of the market. As economies continue to grow and urbanization rates increase, the demand for residential properties is expected to continue rising. Additionally, factors such as interest rates, inflation, and government policies can also influence the market dynamics. In conclusion, the Residential Real Estate market in Africa is experiencing significant growth and development driven by customer preferences for modern and well-designed properties, the emergence of gated communities and affordable housing solutions, as well as underlying macroeconomic factors such as economic growth and urbanization. Understanding the local special circumstances and underlying macroeconomic factors is crucial for investors and developers looking to capitalize on the opportunities in the African Residential Real Estate market.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. 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.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Africa

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Methodology

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