Property Demand and Development
Rapid urbanisation across Africa is giving rise to increasing opportunities in regard to residential property development and ownership, says Andrew Golding, chief executive of Pam Golding Property Group. This is because urbanisation aids economic growth, as larger concentrations of people in cities create large customer bases, promote more efficient labour markets and reduce transport costs.
Says Golding, “Many of the largest cities in Africa are growing rapidly. Nairobi, Kinshasa and Dar es Salaam, for example, are expected to see population growth of over 70% by 2025. Africa’s megacities, including Lagos, Cairo, Luanda and Johannesburg, are increasingly the engines 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 in new millionaires over the next decade – albeit from a low base. The number of dollar millionaires in Nigeria, Kenya and Angola is expected to more than double by 2030; in fact, the number of millionaires in Nigeria is forecast to increase by 174% to 43 000.”
It is said that the number of Africans with $30-million in assets – the ultra-high-net-worth individuals (HNWI) is anticipated to rise by 53% to 2 858 by 2023, far outstripping the average pace of growth across the rest of the world, and by which time there are likely to be 38 billionaires on the continent. “These individuals are currently growing their real estate portfolios quite aggressively, which accounts for the growth in the number of buyers of property in South Africa from other African countries,” says Golding.
Future prospects for Africa offer significant growth potential for those with the foresight and ability to make the most of it. 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, as well as on an individual-property basis, depending on the particular buying needs.
In Uganda, Pam Golding Properties is marketing a new upmarket marina golf resort development on Lake Victoria. It comprises 148 villas and apartments, a championship golf course and a hotel. Situated halfway between Entebbe and Kampala, just five kilometres off the main highway, the secure development consists of 10 apartment blocks – each with eight units of 160m2, spread over four levels, and a 320m2 penthouse, all with scenic views over Lake Victoria – and 58 villas ranging from 650m2 to 900m2. The apartments are priced from $325 000 to $720 000 (about R3.8-million to R8.4-million), and the villas range from $820 000 to about $1-million (about R9.54-million to R11.63-million).
The new development will be officially launched in April 2015, by which time one entire apartment block will have been completed, as will one of each of the four different sized villas.
The units are aimed at top business executives, and an influx of people into the area is anticipated as a result of the oil refinery commencing operation in the next two years.
Peet Strauss, Gauteng development manager at Pam Golding Properties, says key attractions on site include the marina and a championship golf course designed by GolfPlan USA, which also designed the Pezula golf course on the Garden Route as well as numerous world-class golf courses globally.
“Managed for the past three years by the Serena Hotels group – known for its success in the conferencing market, the five-star Serena Hotel offers homeowners access to all services and restaurants, while the golf clubhouse is also managed by Serena. Furthermore, a new, greatly improved main road connecting Entebbe and Kampala is currently under construction, which will provide even easier access.
“While the development is aimed at Ugandan purchasers who can acquire property outright, foreigners can transact on a leasehold basis ranging from 75 to 99 years and renewable automatically. Pam Golding Properties has an experienced developer and a team of Ugandan attorneys to assist throughout the process.”