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Strong Growth is Driving African Property Boom

Report shows rising wealth is driving demand for high quality commercial & residential property.

Knight Frank released a report this week that highlights how Africa’s economic growth is boosting the demand for property across the continent. With GDP averaging 5% over the past 10 years, it may well not be surprising that there is increased demand for commercial property. But the boom is also making Africans richer, and hence private housing is also increasing in quality and price. With such high growth, many cities are struggling to keep up with the amount of commercial property available which has lead to extremely high rental prices.

Businessdayonline.com quoted Matthew Colbourne of Knight Frank as saying…

Africa’s impressive economic progress is generating a growing need for the construction of good quality property in major cities across the continent.

The rising wealth of Africa’s middle class is leading to demand for increasingly sophisticated retail formats and better quality residential property. Meanwhile, as overseas companies seek to expand into Africa’s growing markets, and as African-based companies grow themselves, there is a need for investment in the construction of high quality office buildings, which are currently in short supply in many African cities.

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