13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. 

Extracts from the report concerning Algeria can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 

Office market

Office rents in Algiers have remained
largely stable in recent years, and most of
the office stock is of a low quality which
falls short of international corporates’
standards. The Bab Ezzouar district, near
the airport, is a focus for development
activity, with KPMG’s building now
completed and BNP Paribas’ new
Algerian headquarters due to become
operational in early 2015. In a major
recent deal, Citi has leased space at Le
Ksar tower in Bab Ezzouar, and will be
relocating there from Hydra during 2015.
There are also significant new office
developments due to come on stream
over the next few years in Pins Maritimes.

Retail market
Following the development of the Al
Qods Mall at Cheraga, which opened in
2008 and is now showing its age, SCCA’s
Bab Ezzouar Centre Commercial and
Dahli’s Ardis have also been completed.
The market is strong, although almost
entirely made up of local retailers.
However, Carrefour is returning to the
Algerian market after pulling out in 2009,
and will be opening its first new store
in Sétif. The next major development in
Algiers is likely to be the Trust Complex,
a mixed-use project which includes a
shopping mall with 20,000 sq m GLA,
and is anticipated to be opened in 2016.

Industrial market
Algeria has a very narrow industrial
base as the economy is heavily reliant on
the hydrocarbon sector, but there is
now a major drive to diversify. It is
hoped that the opening in late 2014
of Renault’s new €50 million (c.US$63
million) plant in Oran will be a major
turning point. Industrial activity is spread
throughout Algiers, even in central areas,
although there are dedicated zones
at locations such as Oued Smar and
Rouiba. The new zone at Sidi Abdellah is
becoming a centre for the pharmaceutica
industry, with Sanofi and Hikma both
building factories.

Residential market
The ex-pat market is mainly focused on
Hydra, where large villas are located.
The prime market has softened
over recent years, with downwards
adjustments being made to rents on
renewal. There is significant activity at
the top end of the market in suburban
and out-of-town locations, particularly
around Grands Vents and to the west
of Algiers with Emiral’s Forum El Djazair
development. In the mid-market, there
are major new apartment developments
at Ouled Fayet and Aïn Taya, with
units costing around DZD 9 million
(c.US$112,500). The affordable market
offers units for around DZD 4 million
(c.US$50,000). A significant volume
of serviced apartment stock will be
delivered over the next 2-4 years with
several towers under construction at
the Trust Complex and around Algeria
Business Center.

 

 

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe.

Extracts from the report concerning Angola can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 

Office market

Despite the recent construction of new
buildings, Luanda still suffers from a
lack of good quality office stock, and
occupancy costs remain the highest in
Africa. It is estimated that the majority of
the 250,000-300,000 sq m of office space
being brought to the market during 2014-
15 has already been either pre-let or sold.
The market is dominated by occupiers
from the oil sector, and it is expected that
recent falls in oil prices will affect demand
in 2015. The prime office areas are the
Ingombota and Baixa districts in the
city centre, while secondary office areas
include Maianga, Alvalade and Miramar.
There is also notable office development
activity to the south of the city in Talatona.

Retail market
The retail sector in Luanda is still at a
nascent stage of its development. While
international retailers have started to
be attracted by the growth of Luanda’s
middle class, high set-up costs and the
difficulty of entering the market are holding
many back. There are only three modern
shopping centres in Luanda, although
several others are under construction.
However, many of the new developments
have suffered from a lack of funding
and have been slow to materialise.
For example, the Comandante Gika
project, originally planned to be completed
in 2010, remains under construction.
A 10,000 sq m Kero hypermarket has
opened in the complex, but it remains the
only tenant while development continues
around it.

Industrial market
Industrial market activity is mainly
associated with the oil sector, and most
of the existing stock is owner-occupied.
The principal industrial locations are
Luanda port and Viana to the east of
the city, while there are also established
warehouse districts at Benfica, the
Cacuaco road, and the road to Catete.
The logistics property sector is relatively
undeveloped and immature, and good
quality warehouse space is scarce. The
Angolan government operates the ZEE
(Special Economic Zone) in Viana, where
warehouse properties can be leased
for a fraction of the cost of privately-
owned parks, but there are strict criteria
governing appropriate tenants which make
it extremely difficult to locate there.

Residential market
The prices of good quality villas and
apartments in Luanda have been
among the highest in the world in recent
years. However, a virtually non-existent
mortgage market and significant volumes
of new supply have put downward
pressure on prices. This trend is expected
to continue as a result of falls in oil prices.
New residential property tends to be
located either in central Luanda or to the
south in Talatona. This location provides
lower cost housing and is popular with ex-
pat families. Prime four bedroom houses
rent for around US$15,000 per month in
Talatona, compared with US$25,000 per
month in the city centre.

 

 

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe.

Extracts from the report concerning Cameroon can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 

Office market
In the capital Yaoundé, the office
market is still immature, with very
little modern office stock. Some office
buildings have been constructed in the
Centre Administratif part of the city, but
these have been solely for government
ministries. Apart from these, typical
buildings are constructed in a mixed-use
format, with the ground floor providing
retail space and the upper floors divided
into small rooms which provide basic
office accommodation. Most international
occupiers choose either to be based in
the Hilton Hotel, or to rent and adapt
one of the numerous villas located in
the Bastos quarter, just north of the city
centre. In the commercial city of Douala,
the principal office market locations
are the Bonanjo and Akwa II districts.
Additionally, some office occupiers
will adapt villas in areas close to the
international airport. The city has an
ageing office stock, and is in need of new
development. Near the port, there are
several older large projects which were
abandoned mid-construction and have
not been considered for refurbishment.
There are also small sporadic
refurbishments in Bonanjo, offering office
suites on the upper floors of buildings.

Retail market
The Cameroon retail market is relatively
undeveloped. It is yet to see the scale
of modern mall development that some
other West African countries have
witnessed, and international retailers
have a limited presence. However, the
French supermarket brand Casino has
stores in Yaoundé and Douala, and its
competitors include local operators such
as Mahima and Ecomarché. Douala has
seen some recent retail development,
with a project of note being a shopping
centre called L’Atrium on Rue Surcouf.

Industrial market
Douala, as a port city, is a more important
industrial location than Yaoundé. Its
port is one of the largest in West Africa
and services some of the landlocked
countries of Central Africa as well as the
domestic market. There are designated
industrial zones at Bassa, in the east
of the city and Bonabéri, near the port,
which is home to several major cement
plants. There is little heavy industry
in Yaoundé, which is more of a
regional distribution centre than a
manufacturing location.

Residential market
The top end of the Yaoundé residential
market is focused on the Bastos district.
Conditions appear to be buoyant,
fuelled by demand from the small ex-pat
community, a growing number of wealthy
local individuals and a steady stream of
international companies seeking to take
villas as offices. In Douala, the prime
residential locations are the Bonapriso
and Akwa districts. Rental values in both
cities are very sensitive to the quality of
finish, and properties requiring work can
be leased at a significant discount.

 

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe.

Extracts from the report concerning Chad can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 

Office market

N’Djamena is not a major market for
international tenants. The downtown area
and locations around Avenue Charles
de Gaulle are still relatively low-rise, with
many businesses operating out of villas
or apartment buildings. Office demand
largely stems from government occupiers,
oil companies, banks (e.g. Ecobank
and Société Générale) and telecoms
operators (e.g. Tigo and Airtel). The Cité
Internationale des Affaires project in the
city centre may provide international
corporate occupiers with opportunities for
commercial space but, if it does appear,
it is not likely to be completed for several
years. Ground has been broken on the
construction of a new US Embassy on the
former Assemblée Nationale site between
Dembé and Chagoua, and this may attract
other occupiers to this part of the city.

Retail market
The N’Djamena retail market is immature.
There are some supermarkets frequented
by ex-pats, which are generally run by
Lebanese, Indian and Chinese businesses.
These include Modern Market,
Alimentation Générale and Alimentation
La Tchadienne. However, the most
important local retail centre remains the
Marché Central, which is a traditional
market where prices can be negotiated
and are a fraction of those charged in
retail stores. The Cité Internationale des
Affaires may provide retail opportunities
in the long term.

Industrial market
Industrial activity in Chad principally relates
to oil, cotton, brewing, nuts and meat
production. N’Djamena is not a major
industrial market, although there is an
industrial zone at Farcha, where Total has
a facility. Most of the country’s industrial
activity occurs away from N’Djamena in
locations such as the commercial city of
Moundou. Businesses in Moundou include
CotonTchad and BDT (Brasseries du
Tchad) and there is also some oil-related
activity servicing the oil fields of the Doba
basin, where companies such as Glencore
and ExxonMobil/Esso have operations.
Industrial land is relatively cheap, renting
for CFA 1-2 million (US$2,000-4,000) per
hectare per month.

Residential market
The best residential locations in N’Djamena
include Klémat, Djambalbarh, Bololo
and Farcha. The construction of housing
around the Kempinsky Hotel has stalled
because of its Libyan connections, but
there is a major development at Sabangali
known locally as “60 villas” which is being
built for the upcoming meeting in June
2015 of the heads of state of the African
Union. This is also a driver behind recent
development activity in the hotel sector,
which includes the new Hilton and Grand
Hotels. At the top end of the market, villas
are generally rented for CFA 2-5 million
(c.US$4,000-10,000) per month. In the
mid-market, there are plans for thousands
of units close to the new Toukra University,
which is currently under construction. 

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe.

Extracts from the report concerning Egypt can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 

Office market
Demand for office space in Cairo
comes from the banking, oil and gas,
pharmaceutical, construction and ICT
sectors. Notable recent transactions have
included the Canadian Embassy’s lease of
offices at Nile City Towers, while Barclays
Bank will be relocating from the city centre
to CityStars in a move which will see them
lease 14,000 sq m. Office development
stalled as a result of the political disruption
of recent years, but activity now appears to
be reviving; Smart Villages has announced
a new development at Future City in New
Cairo and CityStars has pressed ahead
with development of an additional office
building. However, a less positive sign is
Cairo Festival City’s postponement of its
Phase II office development. Prime office
rents in the city centre have declined to
US$35 per sq m per month but, even so,
they remain around double the rents in
peripheral areas.

Retail market
Cairo’s modern retail provision has
continued to increase, with recent
openings including Cairo Festival City
Mall (168,000 sq m GLA) in 2013 and the
smaller Galleria 40 in 2014. These have
joined existing malls in Greater Cairo
including CityStars (150,000 sq m GLA)
and Mall of Arabia (180,000 sq m GLA).
More than 900,000 sq m of additional retail
space is expected to be delivered over the
next two years, most notably in Citadel
Plaza in Mokattam and Madinaty Mega
Mall in New Cairo. The most significant
international retailer to enter the market
recently is IKEA, which opened a store
at Cairo Festival City in 2013. Despite
increased uncertainty in the market, retail
rents have remained broadly stable, but a
growing number of tenants have sought to
pay turnover rents.

Industrial market
The government’s Industrial Development
Authority (IDA) is a major driver of
industrial activity, attracting new
investment to the sector and developing
industrial areas. Key industrial locations
in Greater Cairo include 6th October City
and 10th Ramadan City, both of which
are expected to see further investment
by the IDA. Government land is available
for purchase at a cost of US$15-25 per
sq m, about half the typical price of other
commercial land.

Residential market
Residential development has declined
over recent years, albeit the market had
previously been very active. The slowdown
has been due to difficulties in obtaining
construction permits and a general easing
of construction activity, rather than any
reduction in demand. The mid and
low-income brackets are widely seen as
having the best growth prospects, given
the potential size of these markets. In a
move designed to revitalise the sector,
the Egyptian authorities have announced
an agreement with the UAE-based firm
Arabtec for the construction of one
million units of lower income housing
across Egypt.

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. 

Extracts from the report concerning Gabon can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx


Office market
Historically, Libreville has had an
undersupply of office space, and
occupiers have needed to rent residential
or hotel properties and adapt them for
use as offices. For example, the African
Development Bank occupies converted
housing at Gué-Gué, while the UN has
similar premises at Batterie IV. A number
of better quality new buildings are on
Boulevard de l’Indépendance, including
the Gabon Mining Logistics buildings.
The government is a major occupier of
office space, with many ministries being
in the northern part of the city centre.
In the private sector, there is strong
demand for the relatively small supply of
good quality buildings.

Retail market
Although Gabon has a small population,
its GDP per capita is one of the highest in
Africa. As such it represents an attractive
retail opportunity. It is among the
African markets that have been targeted
for expansion by French retail giant
Carrefour. Another French supermarket
brand, Casino, is already present in
Libreville through a partnership with a
local franchisee, while the Gabonese
retailer Prix Import has four supermarkets
in the city. Libreville’s main market is
at Mont-Bouët, although this will be
superseded by the new Grand Marché,
which is under construction by the
Swiss group Webcor on a nearby seven
hectare site. Currently, major challenges
within the retail market include the
limited capabilities of import and
distribution networks.

Industrial market
Industrial development in Libreville is
generally concentrated in the south
of the city, towards its port. There are
two major designated industrial zones,
at Oloumi and Owendo. The market in
Oloumi is mainly characterised by light
manufacturing, with many of the most
visible warehouse units being used for
sales, particularly as car showrooms.
Owendo is mainly a location for heavier
industry and port-related companies.
Major industries in Libreville include
shipbuilding, wood processing
and brewing.

Residential market
The best residential locations in Libreville
are Hauts de Gué-Gué, La Sablière
and Batterie IV. These areas have
seen significant volumes of apartment
development, which has been highly
successful. The market is buoyant and
demand for good quality residential
property is strong, with the pressure
on prices being accentuated by the
competition between individuals and
corporate occupiers seeking to use
residential properties as offices. Gabon
is also seeing the construction of
large amounts of social housing, with
Libreville’s northern suburb of Angondjé
being designated by the government as a
key area for such development. 

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. 

Extracts from the report concerning Madagascar can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 

Office market
The market deteriorated after the
government was overthrown in 2009,
but the 2013 presidential elections were
widely recognised by the international
community. This has led to the return of
a number of NGOs and the World Bank,
which has provided a boost to the office
market. The majority of government
offices, banks and embassies are located
in the CBD. However, this area is very
congested, suffers from a shortage of
car parking and has a large number of
hawkers and street vendors which make
it an unfavourable environment for office
workers. Most multinational companies
prefer to be located in areas to the north
of the city centre, such as Andraharo,
Ankorondrano, Tana Waterfront and
Ivandry. These areas benefit from being
less congested, on the way to the airport
and close to some of the preferred
suburbs for ex-pat housing. A new
landmark office building is the 33-storey
Tour Orange in Ankorondrano which,
following a protracted construction
process, is now completed and almost
fully leased.
Retail market
The retail sector is largely informal
and there are markets throughout
Antananarivo including the
Andravoahangy craft market, the
Petite Vitesse food market and the
Analakely covered market. The main
retail location is the area around Avenue
de l’Indépendance. Antananarivo’s
most modern retail centre is La City in
Alarobia, which opened in 2012 with
around 60 shops and a food court.
The recent period of political instability
made major retailers reluctant to enter
the market, and the supermarket chains
Shoprite, Score and Leader Price are
among the few international retailers
with a presence in Madagasacar. Should
there be a sustained period of political
stability, increased numbers of retailers
from France and South Africa may look t
enter the market.
Industrial market
The main industrial areas are located
in the south of Antananarivo. There
is a mixed-use area to the south of
the city centre which mainly contains
lower quality buildings, Madagascan
businesses and airline companies. As it
forms the main arterial route south of the
city, the road in this area can become
very congested. About 5 km to the south
of the city centre, the Zone Industrielle
Forello is the location of some of the
heavier industries. There is also a small
amount of light industrial activity just
south of the airport.
Residential market
The residential market was negatively
affected by the political instability that
followed the overthrow of the governme
in 2009 and the withdrawal of many
NGOs. Residential values fell by around
25%, but the market is gradually starting
to improve with the return of the NGOs.
The banks continue to restrict lending
and cash buyers dominate the market. 

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. 

Extracts from the report concerning Côte d'Ivoire can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 

Office market
The Abidjan market recovered quickly
ollowing the political crisis of 2010-
11 and La Prévoyance, the biggest
peculative development for many
ears in the main business district
Plateau, is now fully leased. Much of
he current development activity is for
owner-occupation by banking occupiers,
notably Ecobank’s new headquarters
and the African Development Bank’s two
owers, which are being refurbished prior
o the bank’s return to Abidjan. There is a
definite need for new office development
o replace the ageing existing stock. After
a decade of stagnation, office rents have
isen rapidly in the last 12 months and
urther rental growth is expected as long
as 2015’s elections pass off well. There
continues to be interest in offices outside
of Plateau and the opening of the new
bridge crossing the Lagoon from Marcory
will further improve prospects for the
Cocody district.

Retail market
The best shopping centres in Abidjan
are Cap Sud and Cap Nord, which are
both fully leased and anchored by Super
Hayat and Casino respectively. There are
currently few international retail brands in
Côte d’Ivoire, but Carrefour plans to open
ts first hypermarket in Abidjan in 2015,
on Boulevard Valery Giscard d’Estaing
VGE) in Marcory. Demand for retail
pace is strong and a major extension is
currently being developed at Cap Sud,
which will more than double its floor area.
Boutique shopping is found in locations
such as Rue des Jardins in Deux Plateaux
and Boulevard de Marseille in Biétry, with
a number of strong upmarket brands
being locally active, such as Vlisco
(clothing) and L’Oenophile (wines).

Industrial market
Abidjan is a port city and one of the
most important industrial centres in
West Africa, servicing much of French-
speaking Africa and the landlocked
countries to the north. Large-scale
industry is primarily focused on the
industrial zone at Vridi, although there
is also local activity in areas such as
Yopougon. Industry in Vridi is dominated
by fuel refining, but there is also cement
and food production, and international
corporates in this area include Unilever
and Maersk.

Residential market
The top end of the residential market
is focused on Cocody and Zone 4. The
market is buoyant, fuelled to some
extent by the African Development
Bank’s relocation to Abidjan from Tunis.
Typically, rents for very good villas
are in the range of CFA 1.2-1.5 million
(c.US$2,400-3,000) per month, but can
go as high as CFA 3-5 million (c.US6,000-
10,000) per month for luxury product.
Mid-market rents are sub-CFA 0.5 million
(US$1,000) per month. There is a strong
out-of-town market, with significant
development activity out towards
Bingerville and Grand-Bassam. 

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe.

Extracts from the report concerning Equatorial Guinea can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

Office market

Most new office construction is in Malabo
II, an area of modern development along
the road linking Malabo’s airport with the
football stadium. Buildings here tend to be
self-contained and owner-occupied, either
by government ministries or companies
from the construction and oil industries.
Among the oil companies, both Marathon
and Noble Energy have new buildings
in Malabo II, while Total has an office
under construction. International banking
occupiers are generally located in the city
centre, although this will soon change as
Société Générale has a new headquarters
under construction in Malabo II. There
is a limited supply of available offices
in multi-tenanted properties, which are
usually apartment buildings doubling
up as offices. However, a significant
volume of new supply will be provided
by Malabo Gate, which is currently under
construction and comprises two large
mixed-use buildings.

Retail market
The government is trying to reinvent
Malabo as a tourist and conference centre
destination, and there has been significant
development in support of this over the
last two years. There are upmarket hotels,
including a Sofitel, Hilton and Ibis, and
even a casino in the shape of a boat; El
Barco on the Airport Road. However, the
retail market has yet to attract international
brands and, given the small size of the
indigenous population, it will require
visitor numbers to increase significantly
before this happens. There are local
supermarkets, such as Supermercado
Muankaban, whose distinctive orange and
yellow store is on the Airport Road.

Industrial market
Much of the existing warehousing in
Malabo is along or close to the Airport
Road, to the north of which is the port
known as K5. Warehouse rents are very
high, and properties are generally only of a
moderate quality. A significant factor in the
market is the government’s plan to close
K5 and require the oil and gas industry
to operate from Luba, on the other side
of Bioko Island. While the timing for this
is uncertain, all of the oil companies that
are not already in Luba are looking into
their options, mostly focusing on Lonrho’s
Freeport development.

Residential market
Several of the better quality apartment
buildings in Malabo are leased in their
entirety to oil companies. Some provide
small serviced units, often in buildings
designed as hotels, with rents generally in
the order of US$2,000 per month per unit.
There are also compound developments,
some of which are well-established, but
others are speculative and quirky and
include commercial elements. Rents for
standard ex-pat villas are typically in the
order of US$5,000-8,000 per month, but
there are some huge properties which rent
for many times this. Quality is an issue and
many properties are offered in a poorly
maintained state. 

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. 

Extracts from the report concerning Ghana can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 

Office market

Accra has seen a significant amount
of office development in recent years,
particularly in the Airport City area,
which is about 5 km to the north east
of the city centre. Several large projects
are under construction or planned in
this area, notably One Airport Square, a
landmark development by Laurus/Actis,
which is close to completion with around
15,000 sq m of office space. There is
another cluster of office development in
the Ridge area close to the city centre,
where projects nearing completion
include RMB Westport’s Accra Financial
Centre and Dream Realty’s mixed-
use The Octagon. Prime office rents
softened in 2014, due to both the large
volumes of new supply coming to the
market and the impact of the sharp
depreciation of the Ghanaian Cedi.

Retail market
Accra Mall, which opened in 2008, was
the first large-scale modern shopping
centre in Ghana, with around 20,000 sq
m of retail space. More recently, West
Hills Mall opened in Accra in late 2014,
with Shoprite among the anchor tenants.
The new mall has approximately 27,000
sq m of retail space and is claimed to
be largest in West Africa. Street-front
retail also remains popular in Accra, and
the new office buildings in Airport City
generally include retail units on the lower
floors. The trend of mall development is
spreading to the rest of the country, and
pipeline projects include Kumasi City Mall
in Ghana’s second city, Kumasi.

Industrial market
Within Accra, key industrial locations
include the North Industrial Area and
South Industrial Area, where warehouse
units typically provide in the region of
1,000 sq m. About 25 km east of Accra
is the port city of Tema, where an oil
refinery and a number of factories are
located. In early 2015, the Kuwaiti
developer Agility broke ground on a new
logistics park on a 40-acre site in the
Tema Port Free Trade Zone. The city
of Takoradi is another major focus for
industrial activity, as the main base for
Ghana’s offshore oil sector.

Residential market
Traditionally, the areas of Accra which
have been most popular with ex-pats are
Cantonments, Labone and the Airport
Residential Area. These locations offer
modern good quality properties which
are often situated in small gated
compounds. Typical rents are
US$3,000 per month for a two bedroom
apartment and US$5,000 per month
for a four bedroom house. A number
of large residential buildings are under
construction, including Villaggio Vista
in the Airport Residential Area, which
includes a 27-storey tower, the tallest
building in Ghana. Recent development
has focused on the high end of the
market, and there remains a limited stock
of low to middle-income housing.

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. 

Extracts from the report concerning DRC can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 

Office market
The Kinshasa office market is focused
to the north of the city, with many of the
most important buildings being along
Boulevard du 30 Juin. Most of the larger
office buildings are owner-occupied by
banks and state-related operations. Office
development activity appears to have
accelerated since the last elections in
2011, but businesses are likely to become
more cautious in the run up to the 2016
elections. International companies with
a presence in the city include Ericsson,
Orange, Citibank, Elf, Vodacom, Nestlé
and Alcatel-Lucent. Most offices in
Kinshasa are of a fairly poor standard and
many are built without air conditioning or
elevators. Prime rents are around US$30
per sq m per month, but can reach
US$40 per sq m per month for good
quality small spaces.

Retail market
The Kinshasa retail market has shown
limited progress in recent years. The
Gare Centrale development, which was
to have been one of the region’s biggest
retail centres and may have brought
international brands to the market, has
stalled indefinitely. Shoprite is the only
major international retailer in Kinshasa,
having a supermarket in a prime position
in the Gombe district. This site has good
car parking, which is rare for supermarkets
in Kinshasa. Most other supermarkets are
relatively small and many are Lebanese-
run. Prices for goods sold in supermarkets
can be extremely high.

Industrial market
Historically, industrial property has been
located in Gombe and the city centre.
However, most of the more recent
development has been in the east of the
city, in areas between the port and the
international airport. Industrial property
is clustered around the Route des Poids
Lourds, particularly in the areas of
Kingabwa and Limete. Medium and large
industrial properties are generally owner-
occupied and there is little speculative
development. The leasing market mostly
comprises basic second-hand units.
Rents in the city centre can be as high
as US$12 per sq m per month, but this
is for industrial properties that are used
by embassies and NGOs, rather than
industrial users. Prime rents for new-build
industrial properties are more usually in
the order of US$8 per sq m per month.

Residential market
Residential values in the centre of
Kinshasa, and in particular Gombe, were
driven upwards during the 2000s by the
arrival of large numbers of UN personnel.
This has also had a knock-on effect on
prices in more peripheral areas, and
houses in the new Kin-Oasis development
at Bandalungwa cost around US$850,000,
which is affordable to few locals. There is
a major shortage of affordable housing,
with the state authorities estimating that
500,000 units are required over the next
10 years; only a small fraction of this figure
is currently under construction. 

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. 

Extracts from the report concerning Ethiopia can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 

Office market

Ethiopia’s market is restricted because
its Investment Code prohibits foreign
investment in the banking, telecoms
and financial services sectors. However,
office demand is strong, particularly from
NGOs and the oil sector. There has been
significant office development in Addis
Ababa in recent years, particularly in
Bole and Kazanchis. Many of the hotel
operators active in the city have moved
into commercial development, generally
building to a formula that includes 3-4 floors
of retail space, with office floors above.
The market is challenging for international
companies as it is very difficult to find office
buildings that do not include large retail
elements or that comply with international
health and safety standards. As the
climate is relatively mild, offices rarely have
air conditioning.

Retail market
The Addis Ababa retail market is still
at an early stage of its development in
comparison with other major cities in East
Africa. There are some grocery operators in
Addis Ababa, but these are local mid-size
companies operating out of small units,
and there are no international retailers.
Much of the existing retail stock comprises
the lower floors of office buildings, and is
generally poorly planned and managed. The
market would appear to have good growth
potential, as Ethiopia is the second most
populous country in Africa. However, one
obstacle is that, as a landlocked country
with relatively poor infrastructure, supply
chains can be unreliable.

Industrial market
Ethiopia’s industrial sector has begun to
attract international interest as a result of
incentives offered by the government, its
commitment to developing infrastructure
and strong economic growth. Consumer
goods manufacturers such as Diageo,
Heineken, SABMiller, Tiger Brands and
Unilever have entered the market in recent
years. The most desirable locations for
manufacturing are mainly in the corridor
between Addis Ababa and Adama, about
90 km to the south east, in places such as
Akaki Kality, Dukem, Debre Zeit/Bishoftu and
Mojo. Another important area is Alem Gena/
Sebeta where Diageo operates its brewery.

Residential market
The residential and hospitality markets are
the most developed and sophisticated real
estate sectors in Addis Ababa. Demand
from ex-pats tends to be focused on Bole
and Kazanchis. Prices are high and good
property does not stay on the market for
long. A good 3-bed apartment will rent for
around US$3,000 per month unfurnished
or US$5,000 per month furnished, while
aparthotels cost around US$6,750 per
month, offering less living space but
better facilities and services. There is a
huge programme of housing construction
underway around Addis Ababa, which is
largely government-led. This includes the
mid-market 40/60 condominium scheme
(so called because purchases are based
on 40% equity and 60% debt) which has
160,000 residents registered to buy. Similar
schemes aimed at the low-cost market are
the 20/80 and 10/90 programmes.

13 May 2015 - Knight Frank: Africa Report 2015

We are again very pleased to assist Knight Frank on their Africa Report 2015 in countries in which they have no local base and it was very good of them to have credited us. (EMC-RE are the sole credited contributor on this report.)

Countries covered are: Algeria, Angola, Botswana, Cameroon, Chad, Cote d'Ivoire, DRC, Egypt, Equatorial Guinea, Ethiopia, Gabon, Ghana, Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, South Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. 

Extracts from the report concerning Kenya can be seen below. To see the full report go tohttp://www.knightfrank.co.uk/research/africa-report-2015-2802.aspx

 


Office market
Office construction activity in Nairobi
has been boosted by Kenya’s relative
political stability and strong economic
growth resulting from the expansion
of local and multinational companies.
However, during 2014 the market moved
from a position of stability to having an
oversupply of Grade B office space.
There is a relative shortage of Grade A
developments and, even though office
take-up rates in 2014 were around 20%
down on the previous year, prime rental
levels increased by 5-10%.

Retail market
Kenya has seen increased interest from
international retailers seeking to enter
the market, either as sole ventures
or through partnerships with local
investors. Brands such as Carrefour,
Game and Debenhams are all set to
make their debuts in the Kenyan market
during 2015. Demand for retail space
has been driven by the increasing
spending power of Kenyan consumers
and rising demand for overseas brands.
This has encouraged a strong level of
retail construction, with over 220,000
sq m of retail space currently under
development and due for delivery in
the near future. Pre-leasing levels in
the new schemes have been strong;
the forthcoming Garden City Mall,
for example, was 96% pre-let as at
December 2014.

Industrial market
The Kenyan industrial market remained
subdued during 2014, with few leasing
transactions and static rents. Activity has
been restricted by the outdated nature of
Kenya’s industrial stock, which does not
meet the needs of major manufacturing
companies. The market currently
has large industrial requirements and
demand for high quality warehouses.
Going forward, such demand may be
satisfied by large-scale developments
in the pipeline such as Konza City,
Tatu City and KenGen’s Industrial Park.
Average quoted warehouse rents are in
the range of US$3.00-3.60 per sq m
per month.

Residential market
The residential market witnessed
marginal increases in capital and rental
values during 2014. However, there were
signs of a slowdown in transactions in
the prime residential market towards the
end of 2014. Activity has been affected
an oversupply of prime property and
security concerns, which have been
most evident in Nairobi and Mombasa.
However, the low to middle-income
residential market remained resilient,
with demand for such housing still
outstripping supply. The uptake of
residential mortgages remained low
during 2014, as although interest rates
have remained stable at 8.5%, rates are
still significantly higher than rental yields.

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