- Africa’s real estate industry, which is expected to reach $332.3 billion by 2033 is expanding at a 4.51 per cent CAGR driven by a growing middle class and the need for more infrastructure.
- Africa’s property yields, which average 8–12 per cent in prime markets, are higher than those in many developed areas.
- Real estate investment in Africa has a lot of potential, but it also has problems like inconsistent rules and a lack of infrastructure, which can affect returns in new property markets.
As cities grow and new property markets mature, Africa’s real estate market is changing in a big way and attracting billions of dollars from around the world. The United Nations’ 2024 World Population Prospects say that the urban population of the continent will double to 1.4 billion by 2050. This makes cities like Lagos, Nairobi, and Accra very attractive to investors.
This surge, which is expected to reach $332.3 billion by 2033 at a 4.51 per cent CAGR (Market Data Forecast, 2025), is driven by a growing middle class and the need for more infrastructure. Africa’s property yields, which average 8–12 per cent in prime markets, are higher than those in many developed areas.
This makes Africa a good place for global investors to diversify their portfolios while the U.S. and Europe slow down, Knight Frank Africa Report 2024/25 states. As industrial logistics hubs grow, the story of real estate on the continent changes from risk to reward, with a market potential of $21.9 trillion currently.
Urbanization Boom Driving Up Demand in Africa’s Real Estate
Cities in Africa are growing at 3.5 per cent a year, which is the fastest rate in the world, shows OECD Africa’s Urbanisation Dynamics 2025 data. This is changing the real estate market. By 2050, this growth will add 700 million people to cities, which will increase the need for housing, offices, and stores.
In Lagos, Nigeria’s megacity, property prices are expected to reach ₦50 million by 2025, with yields of 8–10 per cent in places like Ikeja (Homes Bay, 2025). Nairobi’s real estate is helped by 3 per cent urban growth, which brings in $500 million in foreign direct investment (FDI) for commercial developments, states Knight Frank Africa Report 2024/25.
In Accra, the capital of Ghana, prime residential markets have yields of 6–8 per cent. This is helped by a 3.2 per cent urbanization rate. With Africa’s real estate market growing at a compound annual growth rate (CAGR) of 5.5 per cent through 2028 (World Bank, 2025), this boom is good for investors. According to PwC’s 2025 Africa Real Estate Outlook, focusing on mixed-use developments gives global capital returns of 10–15 per cent.
Emerging Property Markets in Africa: Places Where You Can Make a Lot of Money
Emerging property markets in Africa are getting investors’ attention, with yields over 8 per cent in major cities, property tracker Knight Frank Africa report says. Lagos has the highest rental yields, between 8 and 10 per cent, in mainland areas like Yaba.
This year, the average price is expected to reach ₦50 million (Homes Bay, 2025). Commercial real estate in Nairobi has yields of 6–9 per cent, thanks to tech hubs and logistics (Orchid Island, 2025). The market in Accra gives 6–8 per cent, and the residential and retail sectors are growing at a rate of 5.5 per cent per year.
Africa’s 3.5 per cent urbanization rate, which adds 3 million people to cities every month, helps these markets. According to PwC’s 2025 Industrial Real Estate Outlook, emerging property markets in Africa promise 12–15 per cent returns in logistics for investors. For example, Lagos’ Eko Atlantic gives 10 per cent for luxury homes, Visual Capitalist notes.
The New Place to Invest: Industrial Logistics Hubs in Africa
The growth of cities and e-commerce is driving the growth of industrial logistics hubs in Africa. Tatu City in Nairobi brings in approximately 8–10 per cent for warehouses, which helps the city grow by 3.5 per cent, notes Knight Frank.
Nigeria’s Lekki Free Zone in Lagos has a 9 per cent return on logistics, even though the city is growing by 3 per cent, statistics by Homes Bay states. Tema Port hubs in Accra Ghana make 7–9 per cent more money because of AfCFTA (Statista, 2025). PwC says logistics market in Africa is worth $150 billion and grows at a rate of 5.6 per cent per year. This means that industrial parks can make 12 per cent returns (Knight Frank, 2025). Hubs like Tatu City promise investors $500 million in value by 2030.
Problems and dangers of investing in Africa’s real estate
Real estate investment in Africa has a lot of potential, but it also has problems like inconsistent rules and a lack of infrastructure, which can affect returns in new property markets. Due to changes in the foreign exchange market, yields in Lagos drop by 2 per cent (Homes Bay, 2025).
The 3.5 per cent growth in Nairobi’s urban population is putting a strain on logistics, which is raising costs by 15 per cent (OECD, 2025). There are land title disputes in Accra, which makes investors less confident. Mitigate with due diligence for net yields of 8 per cent to 12 per cent (PwC, 2025).
Investors from all over the world should put Africa real estate at the top of their list of places to invest in urbanization boom areas like Lagos, Nairobi, and Accra, where they can get yields of 10 per cent or more.
Work with local companies to get around, and look into funds like those from Knight Frank to spread your money around. Act now—Africa’s market will be worth USD 332 billion by 2033 (Market Data Forecast, 2025). Emerging property markets could be good for your portfolio.
Read also: Real estate investor Abdiweli Hussein pumps $50 million in Tatu City SEZ in Nairobi
