Why is the real estate market in Africa becoming attractive to foreign investors?

Habita: International Real EstateAgency

Habita is presented as an international real estateagency, with its headquarters located in Helsinki, the capital of Finland. Currently, the company has numerous offices around the globe, including in various countries in Africa.

Founder of Habita

The founder of this agency, Jari Gardziella, shared his impressions of his time on the African continent. He noted that he was not at all bothered by the existing conditions, emphasizing that he lives without fear. This approach has allowed him to achieve significant results in business.

Activities in The Gambia

In 2017, Habitat began its operations in Gambia—a small country with a population of about two million people. This location turned out to be ideal for starting a business:

• Any housing is easily accessible within a half-hour radius;
• Women could walk the streets without fear, even late at night.

The potential for business in Africa

According to Yari, the potential for business in Africa is generally quite uniform; however, for a successful start, it is better to choose those countries where the level of security is relatively high. Currently, Habita is actively working in countries such as:

• Tanzania;
• Nigeria;
• Ghana;
• Sierra Leone;
• Gambia;
• Senegal;
• Algeria.

In addition, the company's plans include opening new offices in five other countries. Of course, the situation in some regions of the continent is not the best, but the founders are confident that their presence will have a positive impact on the local population.

Reasons for Choosing Africa

What is the reason for choosing Habitat to work specifically in Africa? The answer is simple: the market is showing positive dynamics, especially in the real estate sector. Construction, sales, and rental of housing are on the rise, and citizens are eager to own their own homes.

For the past twenty years, many residents of Africa have been moving to Europe in search of work, and now, with their savings, they are ready to purchase real estate for their families who remain at home. Despite the economic instability in some countries, Habita, as professional leading brokers, are focused on developing and expanding the market by attracting clients to the opportunities of the African continent.

Interest of Local and Foreign Buyers

It should be noted that locals are actively engaged in purchasing real estate, but foreigners are also showing interest. Their motivation for buying is often related to vacation or personal relationships. Typically, those who come to Africa for work prefer to rent housing. This also influences their preferences:

• Local residents choose houses;
• Foreigners tend to prefer apartments.

Opportunities for Investors

New investment opportunities are opening up on the African continent. In particular, there is a shortage of hotels in tourist areas. In the capital of Ghana, Accra, room prices significantly exceed many European standards, creating attractive conditions for investment.

Investors can take advantage of the relative ease of purchasing an apartment and renting it out through rental platforms. Additionally, many developers currently offer property management services, which is especially relevant right after construction is completed.

Conclusion

Thus, Habita continues to actively operate in the rapidly developing real estate market in Africa, assisting both locals and foreigners in finding housing for themselves and their loved ones.

The popularity of rental properties

Among various ways to earn money, real estate rental occupies one of the leading positions. This option has indeed become quite popular among investors. In areas with rapidly developing infrastructure, real estate becomes more profitable over time.

Investment in construction

It is also worth considering the possibility of investing in properties that are under construction or in the "foundation pit" stage. After the construction process is completed, the value of such properties can increase by 20% and even up to 40%. However, this strategy does not always yield the expected results, as its success largely depends on the specific region.

Individual approach to investors

We take an individual approach and select projects, considering the wishes of each investor. For example, hotels in Accra have promising prospects, but this is not a one-size-fits-all strategy for capital growth. A key point in this market is caution.

Construction technologies in Africa

The technologies used in construction in African countries differ significantly from those in Europe. Quality control varies among different construction companies, which is why even experienced investors find the assistance of a professional broker to be extremely necessary, as they have a good understanding of which companies have established a positive reputation.

Real estate buyers in Africa

When it comes to buyers in Africa, it can be confidently stated that the majority do not come from the United States. Americans often prefer to vacation in the Caribbean. However, African Americans have started to return to their roots more frequently. Mostly, clients come from European countries.

The impact of air travel on demand

The situation largely depends on the frequency of flights. If there are regular flights open from a certain country, the demand for real estate in that region increases. If I needed to sell property to Russians, the first thing I would do is study the current routes from Moscow. It is in these directions that the greatest interest and potential can be expected.

Preferred locations for foreign buyers

When it comes to preferred locations for foreign buyers in Africa, most of them dream of purchasing a home by the sea. However, not all African countries allow construction directly on the coastline.

Nevertheless, despite all the dreams, the main factor remainsbudgetIf the client has insufficient funds, they will start looking for places that offer opportunities for active recreation and leisure. Important aspects include the availability of:

• sports grounds,
• pools,
• comfortable communities.

Question about the real estate budget

Now let's turn our attention to the budget question. How much money is needed to purchase real estate in Africa? It all depends on the specific country. For example, in Gambia, the average price ranges from 40,000 to 70,000 euros. In Ghana, this amount can reach 100,000 to 120,000 euros, while in Senegal it already exceeds 200,000 euros.

Clients' willingness to invest

In this region, clients are more willing to invest large sums, as this French-speaking country attracts many people who work and live in France, ensuring they have a sufficient income level to purchase more expensive properties. Additionally, Dakar can be considered a fairly European city, while Accra, although it is a large city, has a wilder and more chaotic pace of life.

The impact of factors on real estate demand in Africa

The influence of various factors on the demand for housing in different African countries is quite significant and multifaceted, among which we can highlight the economic situation and the level of security. For example, The Gambia appears to be a quiet and comfortable village; however, there are not many options for leisure and active recreation. This, in turn, affects the financial capabilities of buyers as well as their expectations regarding housing. Let's take a closer look at the average property prices in several African countries.

Average real estate prices in Africa

In Senegal, property prices range from €200,000 to €500,000, with an additional tax of 18% and a supplementary fee of 2%. The situation is somewhat different in Gambia, where offers start from €40,000 to €80,000, with small additional fees of 2% and 0.5% for extra services. In Sierra Leone, the lack of sufficient data makes it difficult to accurately assess prices, but the range is from €40,000 to €200,000. In Ghana, the average price varies from €100,000 to €200,000, with a tax of 5% and an additional charge of 0.2%. Nigeria, being one of the leading economies in the region, offers housing prices from €100,000 to €400,000, with an added tax of 3%. Tanzania, on the other hand, shows more affordable rates: prices range from €50,000 to €200,000, with a tax of 5%.

The ability to purchase real estate independently

When it comes to the possibility of independently purchasing real estate in African countries, it is quite a feasible task. In several countries, it is allowed to ride a motorcycle without a helmet, but it is important to exercise caution.

I remind you that it is important to be cautious and not to transfer your funds to unfamiliar individuals! Now, let's explore the opportunities for purchasing real estate in Africa. In particular, we present to your attention a variety of properties in Ghana, and we will provide more details about the prices and key features.

Real estate listings in Ghana

One option is a house with an area of 233 m², which includes 5 bedrooms, 4 bathrooms, and 5 utility rooms, available for288,693 €If you want to get all the details about this property, we recommend contacting a company representative.Habita International Estates Ltd.

If you are looking for more spacious accommodation, consider a house with an area of 280 m². It includes 5 bedrooms, 4 bathrooms, and 6 additional rooms.857,057 €Don't forget that there is an option to contact an agent.Habitato obtain all the necessary information.

Villas and apartments

For villa enthusiasts, there is a wonderful property for sale measuring 273 m² with 6 bedrooms, 5 bathrooms, and 6 additional rooms, priced at405,975 €To learn more about this offer, you can contact a representative.Habita.

You can also consider the option of purchasing an apartment of 145 m², which offers 4 bedrooms and 3 bathrooms, with the price being...542,878 €For those who prefer more spacious living, there are luxurious apartments covering 417 m² with 7 bedrooms, 5 bathrooms, and 6 additional rooms, priced at1,881,015 €Again, for more details, it’s worth contacting the company.Habita.

Additional suggestions

Among the available listings, there is also a magnificent villa with an area of 377 m², which includes 7 bedrooms, 6 bathrooms, and 7 auxiliary rooms. The price will be739,776 €If you are interested in a house in Ghana with an area of 800 m², featuring 8 bedrooms and 6 bathrooms, it is available for58,641 €- also don't forget to contact the representativeHabitafor more detailed information.

• A house on a 2000 m² plot of land with 20 bedrooms, 12 bathrooms, and 8 additional rooms, price721,732 €.
• A 230 m² house with 5 bedrooms and 4 bathrooms for sale.288,693 €.
• Apartments of 1000 m² with 16 bedrooms and 15 bathrooms for198,476 €.

A choice for various needs

For those who want more options, there are houses with an area of:

• 500 m², price234,563 €5 bedrooms and 4 bathrooms.
• 400 m² for451,083 €with 10 bedrooms and 7 bathrooms.

If you are considering more compact housing options, take a look at the 32 m² apartments that offer 3 bedrooms and 2 bathrooms. Their price is121,792 €and126,303 €.

Final proposals

In addition, there is an exquisite villa for sale with an area of 300 m², featuring 8 bedrooms, 5 bathrooms, and 6 additional rooms, with prices starting at306,736 €Don't miss the opportunity to evaluate a house with an area of 400 m² for135,325 €, which has 4 bedrooms and 3 bathrooms.

For those interested in apartment living, a spacious property of 120 m² with 4 bedrooms and 3 bathrooms is also available.225,541 €All additional questions and requests regarding the listed properties can be directed to the company's representatives.Habita International Estates Ltd.

In general, the real estate market in Ghana offers a variety of properties that cater to all tastes and financial capabilities. Don't miss the chance to make the right choice!

Real estate in Gambia

Habita International Estates Ltd offers interesting real estate options in Gambia. For example, there is an opportunity to purchase a spacious house with a total area of 218 square meters for just 65,000 euros. This property includes four bedrooms and many other amenities for comfortable living. If you are interested in such offers, it is recommended to contact a representative of Habita for more information. Their portfolio also includes apartments priced at 235,000 euros, with an area of 156 square meters, featuring three bedrooms. For those looking for alternative options, there are also 38 similar properties available in Gambia.

The impact of the crisis on the real estate market

It has recently become clear that the impending economic crisis and its impact on the real estate market are becoming increasingly relevant. The COVID-19 pandemic has affected many countries; however, experts claim that its consequences are most acutely felt in developed economies. In African countries like Gambia, there are their own issues—diseases typical of the region, such as malaria, yellow fever, and Ebola, can overshadow cases of coronavirus infection. These infections, being traditional for the area, continue to cause concern among the local population.

Housing prices in Africa

Housing prices in Africa are showing diverse trends. In places like Zanzibar and Gambia, there is a rise in prices, primarily due to the extended timelines for the construction of new properties. This is caused by a decrease in the number of buyers, leading developers to prefer not to start new projects. In countries like Nigeria, the market situation remains calm: locals are not particularly concerned about the pandemic, as they are facing more serious challenges.

Business culture

When discussing their experiences working on the African continent, many entrepreneurs note the unique business style of the locals. Their approach does not always align with the long-term strategies adopted in Europe. Unlike the Finnish or Russian realities, where the summer harvest is critically important for ensuring survival through the winter, Africans are often more focused on immediate needs: how to provide for themselves tomorrow and where to spend the night.

Understanding the local mentality

This way of life significantly changes the perception of business.

• Local residents rarely accept the proposal to start a business for the sake of future profit.
• To convince them to pay attention to the quality of work, it is necessary to explain how the saved funds can help avoid customer dissatisfaction in the future.

Methods of conducting construction work

The methods of conducting construction work and business processes here are also noticeably different from what is familiar. Although life in Africa may seem challenging, it is important to remember that, overall, people here are friendly and open. Therefore, if you have decided to visit this continent or start your business here, reasonable caution should remain a priority, but there is no need to feel fear towards those around you. Notably, the level of safety, like in any other region, depends on the specific location.

Conclusion

In conclusion, summarizing our discussion on Africa as a new and promising real estate market, I realize how multifaceted and promising this continent is. As we have already noted, Africa is still in a stage of development, which opens up numerous opportunities for investors looking to invest in a growing market. Yari Gardziella, the founder of Habita, laments that there is indeed a lot of potential in continental Africa, and I completely agree with his viewpoint.

Despite the existing gaps in the economy and infrastructure, the local residents' desire to improve their living conditions and the interest of foreign investors in finding opportunities for leisure or business here indicate positive dynamics. Why not consider Africa as an attractive market? It is important to remember that successful investments require a careful approach and analysis.

Key aspects for successful investments

• Cultural differences:Understanding the local culture can play an important role in the success of a business.
• Local legislation:Take into account the characteristics of the legal system of each country.
• Collaboration with local developers:This will help minimize risks.

Those who have already shown interest in real estate in Africa note that many aspects, such as cultural differences and local legal peculiarities, require confidence and the ability to communicate with local developers and authorities. Yari offers just that – risk prevention and assurance in one's actions.

The future of the African real estate market

The future of the African continent in the real estate sector looks quite bright, and as we have seen, there are many ways to increase one's capital:

• Rental
• Opportunities for investors during the construction phase
• Growing interest from foreign buyers

All of this creates an aura of optimism. My conclusion is that Africa, despite all its complexities and challenges, stands out as a market with high potential for those who are willing to approach things creatively and delve deeper into this unique continent.

I am convinced that international companies like Habita can play an important role in changing this situation. I hope that anyone who reads this article will find inspiration to participate in this exciting adventure of exploring the real estate market in Africa. I am sure that collaboration and openness will help us all build a successful and harmonious future.