Experts in the property management sector and mortgage analysts have identified how the industry market is fueling a steady growth of Africa’s real estate sector.
In a new real estate assessment report titled: The African Report 2022/2023, experts highlighted the place of increasing demand for distribution and storage facilities in the growth of the sector.
According to the 58-page report, the observed rise are driven by global requirements and changing consumer patterns within Africa especially countries such as Nigeria, Rwanda, South Africa, Egypt and Tunisia where there are massive investments pumping into various industry-market niches.
Identified as one of the key drivers of real estate growth in Africa, the industrial market, which involves one business trading goods or services with another business, leans on the opportunity created by rapidly emerging gap between demand and supply, particularly for high-quality warehouses, where modern warehousing facilities are on high demands.
TechParley understands that as global trade continues to expand with e-commerce gaining traction in Africa, the need for modern warehousing facilities cannot be overemphasized.
There are concerns, however, that the demand gap in the industrial market may put upward pressure on lease rates.
Governments in various countries across Africa may have to step in with regulations to create a favorable environment for the growth of the industrial real estate sector that will not compromise standards.
And, while this may include implementing policies and regulations that promote investment in logistics infrastructure, government will also have to improve the ease of doing business in the country.