Strategies & Benefits of Investing in African Real Estate
Africa is a stunning continent whose beauty often goes unnoticed. It has tons of beautiful white sandy beaches and green forests which makes it a great place to acquire accommodation. Entrepreneurs like Nikitas Simion, CEO of The Village Group offer great opportunities to invest in luxurious and sustainable villas.
“With new development projects emerging constantly in the African region, you have sea-facing villas, resorts, and apartments to invest in. Besides AZURE, Africa offers a diverse range of real estate projects for you to invest in. So, let’s dive deep into the benefits of investing in real estate projects in Tanzania, Zanzibar, and other African regions” says Nikitas Simion.
Which Strategies Will Help You in African Real-Estate Investment?
Africa is rapidly growing in terms of population and urbanization metrics. Not only that, it also provides a fertile location for people looking to invest in its real estate. In 2021, according to The Washington Post prediction, Africa was going to become the centre of the world’s urban future by the year 2100. So if you are seeking to get involved in African real-estate investments, here are a few strategies you should know about:
Conducting An Informed Market Analysis
Africa is an incredibly diverse continent that has more than 50 countries. Each of those countries has its own specific economic, political, and cultural aspects. If you are going to invest into African real estate, having a detailed and informed market analysis is a must.
For your research, you must have proper knowledge about the local economic indicators, property demand and supply, and most importantly, consumer behaviour. Your research must also include an understanding of growth sectors and demographic trends of the local regions.
When you are investing in African land, make sure you know everything about the land acquisition laws, property rights, tax obligations, and investment incentives. You can even get help from a resident legal counsel to understand all the intricate details of the local real estate.
Building A Strong Network with Local Partners and Professionals
If you are looking to invest in real estate in Africa, building strong relations with local partners and professionals can come in handy. Knowing locals and building stronger relations with them can help you gain market insights, navigate through administrative processes, and build trust with local businesses.
Additionally, you can leverage partnerships with local firms for their existing networks, market knowledge, and operational capabilities.
Diversifying Your Investments
As Africa has so many countries, differences in regulatory changes, political instability, and localized economic downturns can help you mitigate the risk of possible losses in the future. In simple terms, you can reduce your portfolio risks by spreading your investment across countries with varying levels of economic development and political stability.
Where To Invest in Real Estate Projects in Africa?
When it comes to investing in Africa, the continent is full of opportunities. However except for South Africa and a few other countries, only a number of real estate projects are being developed in the continent. “Zanzibar and mainland Tanzania are two great destinations to invest your capital in and get high ROI’s passively”, says Nikitas Simion. Some of The Village Group’s most popular real-estate development projects are AZURE Michamvi resort, Shanga Hotels, The Town Supermarket, and The Village Markets.
AZURE Michamvi 5* Resort
AZURE Michamvi Resort is a part of the East Coast of Zanzibar, and the beachfront leads to a place locals call “The Sunset Bay.” The resort is still under development and is estimated to be completed by 2025.
The resort will have a total of 37 fully furnished villas with either 1, 2, or 3 bedrooms. Not only that, investors in the resort’s construction and development will also have access to a luxurious lifestyle including private pools, gardens, and common places like a restaurant, spa, concierge, infinity pool, and boutique shop. Out of all 37 villas, 27 will be on the beach with sea-facing views, and the other 10 will be jetty villas on the water.
Nikitas Adrian Simion has focused on the development of this resort while considering the local economy and growth as well. This project will employ a direct number of 300+ locals and provide significant benefits to the local small businesses. Along with the benefits to the economy of Zanzibar, this real-estate development project offers the following benefits to villas buyers:
Property associations
High return on investment
Quarterly profit sharing
Zero-risk policy
Premium Office Accommodations
When you are going to invest in commercial properties in Africa, putting your money into retail stores, offices, warehouses, and more would be a wise choice. These properties are considered some of the safest real-estate projects to invest in. However, make sure you know about the market and pick the right location, as these aspects only ensure success in real-estate projects.
Considering the profits on these rental and commercial commodities, in Africa, the Capex rate for these properties is over 11%, which is a lot higher compared to 5% on residential assets. As it provides a higher difference in profits, many investors choose to invest in office accommodations in Africa.
High-Performing Industrial Real-Estate
Africa’s growth prospect is huge and impressive, but it can differ across countries and sectors. So, if you are looking to invest in African real estate associated with industrial projects, then telecommunications, agriculture, banking, infrastructure, oil, and gas would be wise choices. These industrial sectors are highly prominent and fast-growing in Africa, and investing in them can open several profitable opportunities for any real estate investor.
Summing Up
Whether you are entering the real estate investment business or are seasoned in this niche, Africa can open a wealth of profits in the future for you. As Nikitas Simion has gained his wealth of trust and network in Africa, you can invest in his projects and be a contributor to the region’s growth and development.
AZURE Michamvi is one of the most sustainable and highly profitable real estate development projects in Zanzibar. By becoming an investor in these projects, you can contribute to the economic growth and sustainable development of the African regions.
Sara Essop is a travel blogger and writer based in South Africa. She writes about family travel and experiences around the world. Although she has been to 49 countries thus far, she especially loves showcasing her beautiful country and is a certified South Africa Specialist.