Residential Real Estate - Western Africa

Western Africa

The Residential Real Estate market market in Western Africa is projected to reach a value of US$4.07tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.82%, resulting in a market volume of US$5.66tn by 2029.
In global comparison, China will generate the highest Real Estate value with US$112.9tn in 2024.
The demand for luxury beachfront properties in Nigeria is on the rise, driven by the country's growing middle class and increasing tourism.

Key regions: Europe, Brazil, France, Asia, United States

Market

Region

Region comparison

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Analyst Opinion

The Residential Real Estate market in Western Africa is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this positive trend. Customer preferences in the Residential Real Estate market in Western Africa are shifting towards modern and well-designed properties. Buyers and renters are increasingly seeking properties with modern amenities and features, such as smart home technology, energy-efficient appliances, and high-quality finishes. There is also a growing demand for properties that offer a sense of community, with shared spaces and recreational facilities. Additionally, customers are placing a greater emphasis on security and safety features, such as gated communities and 24/7 security services. Trends in the market reflect the increasing urbanization and population growth in Western Africa. As more people move to cities in search of better job opportunities and improved living standards, the demand for residential properties is rising. This has led to a surge in construction activities, with developers focusing on building high-rise apartment complexes and gated communities. The market is also witnessing a rise in mixed-use developments, where residential properties are combined with commercial spaces, retail outlets, and recreational facilities. Local special circumstances in Western Africa are also contributing to the development of the Residential Real Estate market. The region is experiencing a demographic shift, with a growing middle class and a rising number of young professionals. This has created a strong demand for affordable housing options, particularly in urban areas. Additionally, government initiatives and policies aimed at promoting affordable housing and urban development are further fueling the growth of the market. Underlying macroeconomic factors are also playing a significant role in the development of the Residential Real Estate market in Western Africa. Economic stability and growth, along with favorable interest rates, are encouraging individuals and investors to invest in real estate. Foreign direct investment in the region is also on the rise, as international companies recognize the potential of the market and seek to capitalize on the growing demand for residential properties. In conclusion, the Residential Real Estate market in Western Africa is experiencing growth and development due to changing customer preferences, urbanization, government initiatives, and favorable macroeconomic factors. The market is witnessing a shift towards modern properties with desirable amenities, and there is a strong demand for affordable housing options. With the region's economic stability and growth, as well as increasing foreign investment, the market is expected to continue its positive trajectory in the coming years.

Methodology

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.