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Opportunities and Challenges in African Real Estate Markets: Perceptions of Institutional Investors

The current body of literature regarding the African real estate environment is limited. While investing in emerging markets like Africa has demonstrated potential benefits, the actual inflow of investments into the African real estate sector remains low. One of the primary factors contributing to t...

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Bibliographic Details
Main Author: de Bruin, Rutger
Other Authors: Luiz, John
Format: Thesis
Language:English
Published: Graduate School of Business (GSB) 2024
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Summary:The current body of literature regarding the African real estate environment is limited. While investing in emerging markets like Africa has demonstrated potential benefits, the actual inflow of investments into the African real estate sector remains low. One of the primary factors contributing to this is the inadequate availability of comprehensive information about the African real estate market. This study contributes to the body of knowledge by examining the primary opportunities and barriers perceived by institutional investors active in the African real estate market. The research is a qualitative, exploratory study into the perceptions of institutional investors on the African real estate environment. The findings are based on eleven semi-structured interviews with institutional investors that are responsible for making investment decisions into the real estate environment across Africa. The findings highlight that institutional investors consider a wide range of factors when making investment decisions into the African continent. The factors under consideration by institutional investors can give rise to challenges that render real estate investments potentially risky and unsafe. Nevertheless, institutional investors adeptly navigate these challenges through the implementation of specific strategies, which enable them to harness the existing opportunities. The study concludes that success in the African real estate environment hinges on possessing a comprehensive understanding of risk dynamics and a profound knowledge of the operating environment. The research acts as an information source for practitioners and lays groundwork for future research. The study contributes to the body of literature about the African real estate market and enhances our understanding about the decision-making process of institutional investors