Housing in Southern Africa March 2015

Housing

A s growing urbanisation inAfrica aids economic growth - larger concentrations of people in cities create large customer bases. This promotes more efficient labour markets, reduces transport costs and increases opportunities for residential propertydevelopment andownership says Golding. He says, “Many of the largest cit- ies in Africa are growing rapidly, with populations increasing inAfricancities estimatedat over 70%by2025. Africa’s mega-cities including Johannesburg, Lagos, Cairo and Luanda are the en- gines of its economic growth. “With robust economic growth rates anticipated for the continent during the next decade, as well as healthy growth rates in individual wealth, Africa is expected to show the most rapid growth innewmillionaires over the next decade. The number of dollar millionaires in Nigeria, Kenya and Angola is expected to more than double by 2030 - in fact, millionaires in Nigeria are forecast to increase by 174% to 3 000. This is in addition to 38 billionaires on the continent.” It is said that the number of Africans with $30 million in assets – the ultra HNWI Urbanisation in Africa

According toDr AndrewGolding fromthe PamGolding Property group, “Opportunities for property investment in Africa range from large property developments in all segments of the market, from low cost housing through to exclusive villas.”

(high net worth individual) is antici- pated to rise by 53% to 2 858 by 2023, far outstripping the average pace of growth across the rest of the world. “Africa’s city dwellers generally earnmore and spendmore than their rural counterparts and the urban middle class is growing across much of the continent. African retail mar- kets are rapidly developing, while the phenomenal growth of Africa’s tech- nology sector – along with themobile revolution - is creating demand for office space along with multinational companies from the banking sector and companies related to the oil and gas industry.” Golding says that future pros- pects for Africa offer significant growth potential for those with the foresight and ability to make the most of it.“Uganda, Nigeria, Ghana and Angola are key areas that twe are currently focusing on, with our strategy and emphasis on partnering with well-established local operators who either have existing property or want to capitalise on the Pam Golding

Group brand, intellectual property and experience to establish a real estate business.” In Uganda, PGP ismarketing a new upmarket development at Lake Vic- toria, which comprises 148 villas and apartments. The secure development comprises 10 apartment blocks, each with eight units of 160m² spread over four levels plus a 320 m² penthouse – all with spectacular scenic views over Lake Victoria, as well as 58 villas rang- ingfrom650m²to900m². PGPGauteng Development Manager, Peter Strauss says, “While the development is aimed at Ugandan purchasers who can acquire property outright, for- eigners can transact on a leasehold basis ranging from 75 to 99 years and renewable automatically. The group has an experienced developer and team of Ugandan attorneys to assist throughout the process.” ■

March 2015