Inflation will lower FDI in Africa’s real estate – Report
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Macroeconomic and political uncertainties make African real estate unattractive for foreign investments, according to a report by Estate Intel.
It noted that the dwindling macroeconomic indicators may affect African real estate in 2024, leading to a decline in market activity across the continent.
The report added that currency performance, inflation, increasing debt levels, and potential default, countries were already seeing a cutback in investment preference.
The report read in part, “The real estate sector in Africa, often touted for its potential and growth opportunities, has been grappling with a myriad of challenges, notably macroeconomic and political uncertainties, along with the repercussions of global tensions.
“These factors have converged to create a landscape where the attractiveness of real estate markets is increasingly influenced by
Macroeconomic and political uncertainties make African real estate unattractive for foreign investments, according to a report by Estate Intel.
It noted that the dwindling macroeconomic indicators may affect African real estate in 2024, leading to a decline in market activity across the continent.
The report added that currency performance, inflation, increasing debt levels, and potential default, countries were already seeing a cutback in investment preference.
The report read in part, “The real estate sector in Africa, often touted for its potential and growth opportunities, has been grappling with a myriad of challenges, notably macroeconomic and political uncertainties, along with the repercussions of global tensions.
“These factors have converged to create a landscape where the attractiveness of real estate markets is increasingly influenced by core macroeconomic indicators, leading to a noticeable decline in market activity across the continent.
“There is no doubt that currency performance is most often a great indicator of a country’s economic stability. However, investors currently have a reason to be jittery. With inflation already on the rise, increasing debt levels, and potential default, countries are already seeing a cutback in investment preference.”
According to the report, Nigeria’s naira has recorded the highest rate of depreciation in the year to December 2023 with an 83 per cent decline on the official rate.
By Damilola Aina
Inflation will lower FDI in Africa’s real estate – Report (punchng.com)
, leading to a noticeable decline in market activity across the continent.
“There is no doubt that currency performance is most often a great indicator of a country’s economic stability. However, investors currently have a reason to be jittery. With inflation already on the rise, increasing debt levels, and potential default, countries are already seeing a cutback in investment preference.”
According to the report, Nigeria’s naira has recorded the highest rate of depreciation in the year to December 2023 with an 83 per cent decline on the official rate.
