Real estate investors in East Africa are expressing optimism regarding the increasing opportunities within the region's property sector.

This positive sentiment was revealed during the commencement of the 10th Annual East Africa Property Investment Summit in Nairobi.

Abdi Mohammed, the Managing Director of Absa Bank Kenya, highlighted the escalating demand for affordable housing as East Africa undergoes rapid urbanization.

 "There is also growing awareness of the importance of sustainable development, with developers incorporating green technologies and sustainable building practices in their projects," Abdi said.

He emphasized that investors and developers who adapt their strategies accordingly to these trends are likely to succeed in this dynamic and evolving market.

Read More

  1. KCB Group post-tax profits soars by 49 per cent to Sh45.8 billion in Q3 2024
  2. Equity unveils Joska branch, expanding its footprint to 212 locations nationwide
  3. Absa Bank Kenya reports 20 per cent surge in post tax profit to Sh14.7 billion

In addition to the surge in demand for affordable housing, the Light Industrial and Warehousing sector in the region is proving resilient and promising for investors seeking new assets and increased returns in the short term.

Donald Borthwick of London-listed Grit Real Estate Income Group stated, "A-grade industrial real estate in the region has shown outstanding performance potential to weather any expected downturns."

The region's sub-segments, including retail, student housing, and industrial, are maturing and supporting investment allocations and strategies.

These sub-segments exhibit a higher level of maturity compared to other regions on the continent, excluding South Africa.

Nairobi's position as the hub of East Africa has bolstered occupier demand. In the first quarter of 2023, Kenya witnessed a 9 per cent quarter-on-quarter increase in the number of registered businesses, totalling 37,176 registrations.

Tilda Mwai, a Research Associate at Estate Intel, emphasized that key occupiers in the financial services and tech sectors continue to drive demand in the commercial sector, resulting in cautious optimism for traditional real estate sectors.

Property analysts maintain a cautiously optimistic outlook for middle-income residential properties, student housing, corporate accommodations and data centres, as well as performing retail and office sectors.

The 10th Annual East Africa Property Investment Summit serves as a platform for industry stakeholders to discuss and explore the region's real estate landscape, sharing insights and strategies to capitalize on the emerging opportunities within East Africa's dynamic property market.