Investing in real estate in Africa: opportunities and pitfalls to avoid

Real estate remains a popular choice for members of the diaspora wishing to invest in their home country. Demand for housing and infrastructure is high, and prices can seem attractive. However, this sector also has its pitfalls for the uninitiated. Here is what you need to know to make a successful real estate investment in Africa and why it may be wise to consider other options such as private equity.

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Why is real estate so attractive?
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- It is perceived as a safe investment.
- It is a tangible asset.
- It meets a real demand for housing.
- It gives a sense of pride and belonging.

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Opportunities to seize

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- Fast-growing cities with an emerging middle class.
- Government programs aimed at facilitating home ownership.
- Attractive rental yields in certain areas.

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Pitfalls to avoid

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- Buying in overvalued or poorly served areas.
- Lack of clear land titles.
- Endless delays in construction.
- Hidden costs and poor workmanship.

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What if you went further?

Real estate is a good foundation, but it can be slow to generate returns and difficult to manage remotely. Investing in an African company can offer you:

- Faster returns
- A direct impact on the local economy
- Better diversification of your assets

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Real estate remains a relevant investment in Africa, provided you are well informed and surrounded by experts. But if your goal is to boost your assets and have a more direct impact, private equity —investing in local companies — is worth your attention.

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Find out how to become a shareholder in an African company with LowInvestor. Contact us to learn more.

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