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African Real Estate Sector Sees Winds of Change For 2023

African Real Estate Sector Sees Winds of Change For 2023

The African property market could recover from the effects of the Covid-19 pandemic by the first quarter of 2023. This is the view of Malcolm Horne, CEO of the Broll Group, the continent’s largest real estate services provider.

Horne, who is attending the twelfth edition of the Africa Property Investment (API) Summit 2021, from 6 to 10 September, believes that the improvement in the real estate sector is due, in part, to experience with the market.

On the other hand, Horne points to the Covid-19 vaccination process as a door of hope, for opening up the economic environment, which has been weakened since the outbreak of the Covid-19 pandemic in 2020.

“Our success is built on in-depth knowledge and experience and built on a tangible understanding of local markets across Africa. This enables us to offer cutting-edge real estate solutions based on strategic and fully integrated real estate services,” said Malcolm Horne.

However, this is not enough and Horne adds, “As a leading provider of real estate solutions, we are keeping a close eye on the implementation of the vaccination process in Africa and the respective economic recovery across the continent”.

The businessman doesn’t stop there. He also points out the importance of technology to boost the real estate sector, especially to increase revenues and assets within a sustainable market.

However, Malcolm Horne is cautious in his projections, stating that “I don’t think we will necessarily have the same trend that is seen in first world countries, where most of the jobs lost due to COVID-19 will largely be recovered by the end of 2023”.

The real estate entrepreneur knows that the restoration of employment in the sector will be an important fact and driver of the global recovery, overall. Therefore, he suggests that the sector should be properly prepared to meet the challenges of the market.

For the cheer that is needed in the real estate sector, Malcolm Horne proposes which real estate sub-sectors investors should devote their greatest attention to.

“The real challenges are in offices, retail and hotels. In the case of retail, the sector continues to attract investment. There have been major retailers pulling out of some African markets, but if you look at the international trend, a large number of landlords have actually invested in retailers to ensure their relaunch,” Malcolm Horne noted.

The entrepreneur continues: “we have observed a similar trend in Africa in relation to the resurgence of interest from local investors in the retail sector.”

The representative of Africa’s largest real estate services firm said, however, that neither is going badly, not least because there were a good number of real estate sub-sectors that did well or have done well before and during the health crisis period in which the world finds itself.

“The obvious winners are manufacturing, data centres and lifestyle, the latter focused on wellness and healthy living and healthcare. These have done very well. If you compare it to Africa, they have also done equally well on the continent.”

Horne reveals optimism about the future of real estate in Africa, not least because the firm he represents is looking to strengthen the core of the business and make it increasingly resilient and flexible.

Horne does not hide his uncertainty about the continent’s trajectory in relation to the advance of vaccination against the new Coronavirus. In Africa, the number of people vaccinated is still far from what is desired, however, hope is the last to die.

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“We hope that by the first quarter of 2023, the problems of vaccine supply and demand will have been largely resolved, so that we can gain momentum across the continent in the vaccination campaign,” so wishes Malcolm Horne.

“That will be positive and will mark the start of an acceleration in economic activity. It is crucial that lock-ins are not re-instituted and that is why a successful vaccine distribution is so crucial,” he stressed.

For Horne, the twelfth edition of the Africa Property Investment (API) Summit 2021 has the potential to attract a range of stakeholders, including investors, buyers, service providers and financiers.

At this event, Mozambique and the Democratic Republic of Congo will be highlighted, as in these countries the real estate market is increasingly emerging.

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