How about an oversight of how the real estate market is doing in West Africa? Africa in general is experiencing rapid growth in its real estate market, but West Africa in particular is attracting large numbers of international investors, developers and even squatters.
With its rapid population growth, came an increase in the population of the wealthy and middle class. The increase in tourism and the rapid relocation of companies boosted the demand for modern hotels, shopping malls and offices in West Africa.
Just like any other business in Africa, the West African real estate industry has its own hurdles to overcome, one of them being smooth development and this has brought many developers and lenders to the capital of Nigeria which is Lagos, Ghana and not forgetting those in East Africa. major shopping area, Nairobi.
Nigeria has a wealth of natural resources and with its current development trend, many have their predictions for it to be the next South Africa. The major Eko Atlantic development located in Lagos provides a true measure with a clear indication of the scale of the development underway there. There is also an increase in the middle class population of Nigeria which also comes with an increase in foreign travelers which has led to the increase in the number of luxury hotels and accommodations in this area.
The challenges facing the Nigerian real estate industry are things like;
- Lack of transparency
- Political and exchange risk
- Difficulty getting permit approval
- costs control
These challenges can also affect the real estate industry in general.
Despite the fact that only a few West African countries have mortgage banks, these countries are undergoing decentralization and democratization and many of their cities have emerged from rural areas with significant modernization in their capital cities.
Another factor that makes foreign investment important in West African countries is their affordability index. This is a big challenge depending on the economic environment in which you would like to invest.