Real Estate Investment in Africa: Prospects and Opportunities
Published on:
02.04.2025READING TIME:
15 minutes- Africa — the most-most. A brief overview of the mysterious continent
- Why investments in Africa are becoming increasingly attractive
- Choosing a project for investment is a very complex process
- What is the best country in Africa for real estate investment
- Real estate abroad for Kazakhstan citizens: features of buying in 10 countries
- How to buy a house in Africa: a practical guide
- Types and features of real estate in Africa for investment
- Residential real estate
- Commercial real estate
- Mixed-use projects
- Land plots
- Real estate and investments: comparing the African market with other regions
- Investment citizenship and residency programs
- Honest talk. Risks of investing in Africa
- Advantages of investing in real estate abroad. The example of Africa
For a long time, Africa remained in the shadow of more popular investment destinations. But at the moment, this continent demonstrates impressive growth potential.
The African real estate market is projected to reach $17.64 trillion by the end of 2025, with an expected average annual growth of 5.58% during 2025-2029. These figures make you think: perhaps now is the time to consider investing in African real estate?
In this article, we will explain how and where to buy real estate in Africa. We will examine the most attractive countries not only for investment, but also for purchasing a second home. We will also pay attention to possible risks.
Africa — the most-most. A brief overview of the mysterious continent
- Africa's area is 30.37 million sq. km. It is the second largest continent in the world.
- There are 55 independent states in Africa — more than in any other part of the world. And Africa is inhabited by about 8,500 diverse ethnic groups.
- Africa is the fastest-growing continent by population. Currently, 1.5 billion people live here.
- Africa is the richest continent in terms of resources.
- For the second decade in a row, Africa has been the fastest economically developing continent.
Why investments in Africa are becoming increasingly attractive
Investments in Africa attract the attention of forward-thinking investors for several reasons. First, the continent is experiencing a period of active economic growth and urbanization. A growing middle class is creating sustainable demand for quality housing and commercial properties, and there are currently opportunities to find profitable real estate offers. Second, many African countries are actively working to improve the investment climate, simplifying procedures for foreigners to acquire real estate.
It is important to note that investments in Africa are not only an opportunity to obtain high returns, but also a way to diversify your investment portfolio. Here you can buy assets at competitive prices, and investors with different budgets can afford profitable investments.
What is the best country in Africa for real estate investment
Determining which is the best country in Africa for investment depends on your goals: Mauritius is attractive for stability, Egypt for its large-scale market, and Morocco for its developed luxury segment. Let's examine the most promising destinations in more detail:
Mauritius
Mauritius is considered one of the most stable and safe places for investment on the continent.
The picturesque island in the Indian Ocean offers attractive conditions for foreign investors, including a residence permit program for purchasing real estate from $375,000. The Mauritius real estate market is focused on the premium segment, with special emphasis on villas and oceanfront apartments. A stable political situation, developed infrastructure, and favorable tax regime make Mauritius an ideal choice for conservative investors.
Egypt
Perhaps the most familiar country among all African states for citizens of CIS countries. Egypt offers one of the most affordable investment citizenship programs in the region, requiring minimum investments of $300,000 in real estate.
The country is actively developing new urban projects and tourism infrastructure, creating additional opportunities for investors. Particularly promising are resort areas on the Red Sea coast and the new administrative capital being built near Cairo.
Morocco
An ancient kingdom on the Atlantic Ocean coast, Morocco stands out for its developed luxury real estate segment, especially in cities such as Marrakech, Casablanca, and Tangier. The country attracts with a stable economy, strategic location (just 1 hour by ferry from Tangier to Spain), and rich cultural heritage.
Investments in Morocco real estate can be particularly attractive for those seeking properties with high potential for value appreciation and the possibility of generating passive income from rentals.
South Africa
The South African real estate market in 2024 demonstrates bright prospects for investors. Thanks to growing demand from the middle class and active urbanization, especially in Cape Town and Johannesburg, the affordable housing sector is experiencing a real boom.
Foreign investors, attracted by favorable prices due to the depreciation of the rand and high rental yield potential, are actively investing in commercial real estate. South African authorities also support the market by simplifying procedures for foreign buyers and developing infrastructure. All this makes the country one of the most promising destinations for real estate investment on the African continent.
The South African real estate market is distinguished by diversity; here you can find modern properties on the shores of the Atlantic or Indian Oceans, historic estates, projects in nature reserve parks, wineries, and so on.
Tanzania
Tanzania — this is where the majestic Kilimanjaro, Lake Victoria, and the picturesque Zanzibar archipelago are located.
The Tanzanian real estate market in 2024 demonstrates steady growth, with the Zanzibar real estate sector particularly standing out, having become a magnet for foreign investors. This tropical archipelago with its white sandy beaches and rich culture attracts buyers seeking both luxury villas and profitable tourist properties. On the mainland, especially in Dar es Salaam and Arusha, demand for commercial and residential real estate is fueled by the developing economy and growing middle class.
The Tanzanian government is working to increase foreign investment inflows by simplifying procedures for foreigners, making the market even more accessible. At the same time, Zanzibar real estate remains the most liquid, thanks to high tourist traffic and rental income potential.
Seychelles
