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Africa – growth in the real estate sector: elevators, platforms linked to the trend

africa

And if the future was Africa? Africa is one of the fastest growing economies in the world, which has brought about a huge demand for infrastructure, housing and other real estate projects (and consequently there is a growth trend in the elevator sector). Thereby creating ample opportunities for the vertical transportation industry to expand their business to this region. The elevator & escalator (E&E) market of the continent is currently estimated at 35,000 to 40,000 units per year. The infrastructure construction market’s value is projected to reach $24.3 billion by 2020. Not only: between 2010 and 2025 the populations of many large African cities will grow between 60% and 120%. And in Africa there are some of the countries with the highest growth rates in the world. Most Sub-Saharan countries, from 2015 to 2019, should report annual GDP growth of 4% to 8%. Despite these long-term growth trends and the need for commercial real estate development, Africa was not the object of interest of the main investors in the real estate market.
Modern and affordable commercial and residential properties are lacking. Any phase of weakness in the prices of this market over the next 12-18 months could represent a long-term buying opportunity. For example, the commercial real estate market in sub-Saharan Africa is underdeveloped compared to the population although in the sub-Saharan territory there are 830 million people, in fact, there are only 0.5 million square meters of shopping centers and 2 million square meters of offices. On the other hand, South Africa has 21 million square meters of shopping centers for only 52 million people.