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Discussion Starter · #1 ·
Regarded as a high risk for high return kind of investment, the sub-Saharan real estate market is welcoming unusual visitors: long term investors from foreign countries.

Reuters reported last week that despite political instability concerns, ebola and terrorism issues, these investors are being pulled into this market by a forecasted 20% annual return in real estate and are investing in industry complexes, shopping malls and office blocks among others, in different countries in the region.
More: http://constructionreviewonline.com...n-africa-real-estate-market-offers-20-return/
 

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My thoughts exactly. Im not a fan of property speculation. In the UK and USA property is still looked too much as an investment whereas in Germany or France its is mostly a place to live- they dont obsess about their value.
 

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I would never spend money on buying a house in DRC.

I will buy my own plot, get my house built by a small time contractor, it's cheeap that way.
That used to be the way in Ghana. Now estates are getting more and more common. The prices of luxury houses have shot up in Ghana over the last 15-20 years. Some of these estates are charging what you would (or more) pay in a nice American suburb. My Dads house in NJ- would cost twice as much in the premium Vilagio estate in Accra.

This distortion is all being fueled by a minority with money- Ghanaians who live abroad, oil, business people- as well as [corrupt] politicians. Land speculation is rife.

My grandfather's brother was just a doctor, working for the state, and he could afford to build 4 family homes (3 in Accra, one in his village) during his life. Impossible now.
 

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Engineer d's art't enjoys
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I guess Nairobi has the most expensive real estate industry on the continent at the moment.
 

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Discussion Starter · #8 ·
Butembo; What if there were statistics to prove its booming? I support Ekema that real estate is one of the top businesses in Africa as a whole: I gues the issues you have raised with Popa is why it is regarded as a high risk for high return kind of investment.

Mintali;...Demand is what pulls it. real estate is one of the high return biz in Kenya cuz of demand; and...when people invest they do good and when they get positive returns worth it, they feel good... :)
 

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Mutu ya Chuma.
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Butembo; What if there were statistics to prove its booming? I support Ekema that real estate is one of the top businesses in Africa as a whole: I gues the issues you have raised with Popa is why it is regarded as a high risk for high return kind of investment.
High risk and return is Rubbish policy....Im from DRC city wich is one of the best in Estate industry and i don't like the situation is see. those with money ( Diaspora, businessmen etc..)live in Estate like first world, whist the lower class is miserable because there is no social housin programs. neither by the Central gov, nor by the provincial gov.
My province is one of the business savvy ones in the country, but Public services are a nightmare.

I live in America and my father is involved in Real estate in California, but when compared to DRC, its ridiculous when you see the prices in DRC compared to mighty USA and Europe.
 

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High risk and return is Rubbish policy....Im from DRC city wich is one of the best in Estate industry and i don't like the situation is see. those with money ( Diaspora, businessmen etc..)live in Estate like first world, whist the lower class is miserable because there is no social housin programs. neither by the Central gov, nor by the provincial gov.
My province is one of the business savvy ones in the country, but Public services are a nightmare.

I live in America and my father is involved in Real estate in California, but when compared to DRC, its ridiculous when you see the prices in DRC compared to mighty USA and Europe.
Its like here in the UK, when people are pleased when they read newspaper headlines that property prices are exploding. That prices are going up much faster than peoples salaries is not something to be happy about.
 

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Mutu ya Chuma.
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Its like here in the UK, when people are pleased when they read newspaper headlines that property prices are exploding. That prices are going up much faster than peoples salaries is not something to be happy about.
The problem in DRC like in rest of Africa is the same.... there are no gov responsibilities, they are are supposed to prepare lands/plots for both middle class and lower class to build by providiving public services like Roads, Water, energy, hospitals, schools and sewer systems......but this does not happen, triggering land and property to be ridiculously expensove...creating an industry out of aabsolute nisery.....that is not how you want to develop a country or nation.....
 

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Mutu ya Chuma.
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If you away from neighborhood like above, ypu'll see so many houses made of wood (considfred lower class), i think the most wooden city in Africa, but also some of the wealthiest homes in Africa all done by local people.

Just because there are these Estate returns and etc...doesn't mean they are needed or nexessary ....


What people need are education, healthcare, easy to do business, peace and of cource jobs for eveyone.
 

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Discussion Starter · #14 ·
BUTEMBO21; news about high demand for housing isn't falacy because a research was done; may be we talk about what is causing that;
look here; if you look around, you will see many govts in Africa doing something for low income and middle income earners; ama have to paste links here:
South Africa:
Zambia:
Kenya:
Nigeria;
you know, we may not have a lot but we are doing something;
Investors are coming in to take advantage of search opportunities, and I think investors are happy to get involved to do something to serve poor communities via these means [URL="http://constructionreviewonline.com/2014/09/02/qatar-investors-enter-kenya-real-estate-market/"] POPA1980
 

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Mutu ya Chuma.
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I know this industry in and out....I have lived in Adeica and in developed world and my family is one of those that is very involved in the industry both on Africa and in developed world.


However; The prices in most of Africa, especially SSA are inexcusesable....... Its not excusable tha SSA have higher prices than the West, no, no , no.....Unless you're cluless about basic dynamic economics.
 

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Engineer d's art't enjoys
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I know this industry in and out....I have lived in Adeica and in developed world and my family is one of those that is very involved in the industry both on Africa and in developed world.


However; The prices in most of Africa, especially SSA are inexcusesable....... Its not excusable tha SSA have higher prices than the West, no, no , no.....Unless you're cluless about basic dynamic economics.
The cost of construction could be higher in Africa than the west.
 

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Discussion Starter · #17 ·
Well, the supply is at the low side; and since they are needed, the prices go up; actually, towards the mid of this year, a certain report indicated that housing prices in Namibia went up than those in S.A and U.S. so, it cud be that an economy being well off, prices cud go lower cuz may be gov invest more; Cost of construction and material is high in Africa, I agree, but shortage of supply is a cause for high supply.
 

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Probably part of the reason manufacturing is lagging. Lots of cash tied up in real estate speculation. Many who could start small factories or processing plants are opting to invest that cash in land and property. And who can blame them? Why go through the stress of building a risky business when you can just buy land, sit passively by and then sell it for 2-3 times the amount months later? Its too tempting. Real estate speculation is paying off at an individual/corporate investor level in Kenya but is not necessarily beneficial to the economy as a whole in the long run.
 

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The problem in DRC like in rest of Africa is the same.... there are no gov responsibilities, they are are supposed to prepare lands/plots for both middle class and lower class to build by providiving public services like Roads, Water, energy, hospitals, schools and sewer systems......but this does not happen, triggering land and property to be ridiculously expensove...creating an industry out of aabsolute nisery.....that is not how you want to develop a country or nation.....
It's economics. With poor infra any decent dwelling will go for a lot. If the slums get the same infra as the rich areas the prices will drop
 

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I know this industry in and out....I have lived in Adeica and in developed world and my family is one of those that is very involved in the industry both on Africa and in developed world.


However; The prices in most of Africa, especially SSA are inexcusesable....... Its not excusable tha SSA have higher prices than the West, no, no , no.....Unless you're cluless about basic dynamic economics.
Also in nigeria there's a shortage of housing. About 17 million units. Dangote will just get richer as they meet that demand
 
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