Real Estate Market in Africa

Africa's property industry presents unique opportunities but also huge challenges. In recent times, African property developers have achieved up to 100% return on capital invested in property projects. Middle class home ownership is on the rise, pointing to a growing need for both primary and secondary mortgage markets. We will shine a spotlight on various segments of the property market in Africa.
Sitated at the tip of Africa, South Africa has the most sophisticated free-market economy on the African continent, allowing for a healthy property market. South Africa is a unique country of diversity and contrasts. Both locals and tourists alike have been investing in brilliant value-for-money property in some of the most spectacular locations in the world. And it is not hard to see why.
South Africa is a country of spectacular natural beauty, mineral wealth and a temperate climate. The democratic elections in 1994 saw the country once again welcomed back into the International community. With 11 official languages, nine provinces and numerous vibrant cultures and people, the country has become aptly known as the "Rainbow Nation".
Morocco property investments are highly attractive with prices one third of comparable builds in Spain and capital growth of over 30% in the last 3 years. Morover, rental income is tax exempt for 5 years and no capital gains are paid for properties sold after 10 years.
Cape Verde has grown as an investment location since 1993, when the government voted to allow foreigners to have full rights of property ownership. Additional legislation has since been passed to provide further incentives to investors and developers. With tourism increasing 8.6% in 2005 (and targeted to grow 200% by 2010), property prices are beginning to record double digit growth.
Property prices in Egypt are still low compared to Europe and the Middle East – however, since 2000 the areas of the Red Sea and Mediterranean have seen a boom in development. Resorts such as Sharm El Sheikh and Hurghada are most popular with investors fueled by the increase in tourism and official encouragement of foreign investment. Overseas visitors to Egypt have increased by 35% since 2000 with over 400,000 alone from the UK in 2004.
Since the change in government in 2002, the fortunes of Kenya have dramatically improved. Corruption is being targeted and the economy grew 3.3% in 2005. Overseas investors are beginning to target new property developments predominantly in the game reserves and along the Indian Ocean coast. Investors have taken further encouragement by tourism growth of 35% in just 3 years creating a long term potential in both capital appreciation and rental yields. The cost of living and property prices remain low – in addition, there are no restrictions for foreigners buying non-agricultural property.
It's a reasonably safe bet that Ghana doesn't immediately spring to mind for most property investors. However, when you look further into what Ghana has to offer, you will see that it deserves a position on anybody's short-list.
Much of the attraction of Ghana comes from its tropical location, and political stability that most other African nations can only dream of. Ghana has a legacy as the center of the gold, ivory, and slave trade during the 17th and 18th centuries, when the mighty Ashanti Empire held sway there. Much of the heritage of these times is still there to be seen. A popular example is El Mina Castle where the slave dungeons still exist and you can still see the ominous signs directing slaves to the Caribbean and American bound ships.
Prices in the country remain comparatively low. The inflow of expatriates and second home owners has been increasing steadily over the years, but Ghana remains relatively undiscovered. As the country becomes increasingly popular and the prospect of coastal development is realized, Ghana should start to find itself closer to the top of the list.