Kenya, South Africa in top five property investment locations for Africa’s wealthy
London, August 22, 2018 (AltAfrica)-Kenya and South Africa are among the top five global investment locations for Africa’s wealthy, according to the latest wealth report by global real estate consultancy, Knight Frank.
In the report, United Kingdom is top with 63% closed followed with United States in distance 2nd place with 33%. Kenya and South Africa occupy third and fourth places respectively with 24 and 9% share of the market.
Australia, France, Germany, United Arab Emirate, India and Spain, all with 6% of the investment are tie at the fifth place
“In Kenya, Nairobi, specifically, are seen as safe havens for people to invest their wealth,” says Ben Woodhams. Managing Director of Knight Frank Kenya.“They are not necessarily purchases where people will come and live in those properties. A lot of them are investments.”
“Nairobi is a great place to live, to be, to do business. In the next couple of years, it will see a dramatic change,” says Andrew Lyubimov, Development Manager at the Imaran Group.
“Global companies will come here to base their head offices [to] become the gateway to the region. So, of course, you are going to need offices. You are going to need places to live. So that drives a lot of the real estate market,” says Edwin Dande, CEO of Cytonn Investments. Nairobi-based Cytonn Investments currently manages over $830 million in real estate projects and contracts.
“The investment market is very active here and [it] has become a destination for high net worth across the continent to invest their money,” says Ben Woodhams.
Part of Nairobi’s draw is the construction of The Pinnacle which, when completed, is expected to become the tallest skyscraper in Africa, at 70 storeys and 300 meters (980 feet) in height. Currently, the tallest building in Africa is the 223 meter Carlton Centre in Johannesburg.
In addition to commercial investment opportunities, residential properties are also finding a place in the highly sought after Nairobi market.