Why is Land a Good Investment in Africa?

Real estate remains one of the most attractive investment opportunities today. In Africa, this trend has been fueled by rapidly developing real estate markets that promise increased security and transparency as well as considerable returns. Land, in particular, has become a reliable channel for real estate investment in major African cities. With the right research, strategy and support, you can be assured of a positive return from investing in land. Here are a few reasons why you should consider investing in land in Africa.

1. Rising demand

A cursory observation may lead one to categorize Africa as land abundant. However, factors such as increasing population and urbanization in major regions drive up the demand and value of land. For instance, Africa’s population is estimated to reach 2.5 billion by the year 2050, and will be the youngest continent in the world. The rapid growth of Africa’s population, paired with an expanding middle class, could lead to a colossal increase in demand for diverse real estate. Furthermore, while real estate needs may evolve and be mediated by existing socio-economic circumstances, land will always be the finite and valuable resource that supports the growth of multiple industries.  

2. Land is a stable investment

Land has been described as the ‘golden child’ of investing. Investing in a vacant piece of land is significantly less risky than stocks. It cannot disappear or lose its value all of a sudden. Regardless of the world economic situation or monetary/currency stability the value of well kept land will most likely increase. Furthermore, once you purchase land through the legally required process, your investment is strongly secured. Your Land can’t be stolen or destroyed without due recourse. Even if you are unable to maintain or service your land, it will continue to rise in value in its natural state. 

3. Access to land in Africa is easier than ever before

It was once a significant challenge for companies, governments, or individuals to purchase land in Africa. Fortunately, major real estate industries have developed over the past ten years to make it much more feasible for both local and foreign investors to buy and access property. Credible real estate companies and technologies have been established that provide a more robust framework for investing in property, especially land. These include proptech companies, real estate banks, developers, fintech companies and more. For instance, Seso Global has built Africa’s most trusted property marketplace, which is a unique one-stop-shop for digital real estate transactions. Through a unique ecosystem of services, they offer buyers access to trusted properties and professional service providers. This allows investors to buy lucrative land in a secured, efficient and convenient way. Buying land from a developer tends to be more valuable given all the factors that are considered by developers before purchasing and selling lands like the location, the amenities and all the legal requirements. Moreover, serviced properties are more valuable than unserviced properties. For instance in Ghana, serviced properties have a 20-25% return on investment year on year, on average.

4. Africa is becoming a global hub

The continent has seen high rates of economic growth over the last decade which is expected to continue. With this growth rate, Africa could become one of the most prosperous regions in the world. Additionally, Africa has vast natural resources which makes it one of the most resource rich continents on earth with huge reserves of oil, gas, gold and diamonds – all essential for today’s global economy. The continent also has plenty of agricultural potential because it accounts for about 40% of all uncultivated land on earth. Moreover, investors would be attracted by the long term market potential of countries like Nigeria which have been predicted by experts to grow by more than 50% by 2050! Ultimately, buying land in the right location in Africa is a profitable bet on the future of the rising continent.

5. Land is great to hold long-term

Purchasing land is a great investment choice for individuals with long term goals. This is particularly true for real estate investors who don’t have immediate plans to develop property. It’s for the patient, smart investor who is willing to hold assets for the long-term or pass it on as a legacy. Land is also an attractive investment choice for the investor who is 10 – 15 years from retirement, who wants to diversify their portfolio. Land is a smart long-term hold, allowing you to win the benefits of rising values. Especially if you buy in an area that’s due to expand and grow.

Ultimately, Land has always been an attractive investment for those looking to establish themselves in the African real estate market. However, through improvements to the economic, infrastructural and legal ecosystems in major African countries, foreign investors are now empowered to have more confidence in their choices as well as their opportunities for significant returns. Investing in land through the right channels and with the right support allows individuals to engage in a hands-off, stable and long term investments in Africa. Contact Seso Global to discover how you can invest in land within Africa for the best outcomes.