From increased foreign direct investment, shifting occupier patterns to ecommerce, 2022 is expected to be a record year for the real estate market in Africa. However, a divergence continues to exist in market performance across key markets in the continent. Below we identify the factors likely to impact performance in Africa’s top markets and the key sectors to watch out for in these markets.

Real Estate Boom in Egypt set to continue

The Egyptian real estate market has generally emerged as a winner from the pandemic. The sector grew by 8% in 2021 according to the Ministry of Planning, with developers noting that the local real estate sector remains stable for the first time in 15 years. Overall, the market attracted approximately US$10 billion in sales in 2021 with further foreign investments of US$ 500million underpinning the growing investor confidence in the market.

This stability across the property cycle makes the general real estate market across all sectors one to watch out for in 2022, especially for core capital allocation. The residential sector in specific is set to be a stand out performer underpinned by increased foreign investments as well as a decline in interest rates allowing for increased investments. As a result, the sector is set to record steady demand as well as increased supply in the number of completed units as highlighted by the Egyptian Businessmen Association.

Credit: Naira metrics