Operating a property development business has always been associated with some sort of risk and the mood among most real estate investors since the COVID19 era is cautious optimism with the global economy recovery being slowed down by the Russia-Ukraine war as well as the growing number of middle-class consumers caused by rapid urbanisation; all these affecting the trends in the property development sector.
Property developer and CEO of West Properties Zimbabwe, Kenneth Sharpe, who is one of the real estate tycoons in Africa gives us some insights on what to expect in 2023 across Africa in the property development industry.
“Being a real estate investor, I have witnessed a lot of events and trends in the property sector but I can surely tell you that post-pandemic trends have been the most dynamic, however, here are some things to expect this year”…..
- People will continue to urbanize and seek affordable accommodation in cities
- Demand for power will continue to outpace supply and those countries and cities who invest heavily in renewable energy will benefit greatly
- Prices will continue to rise due to availability of land being scarce and demand high
- Gated communities and lifestyle estates will demand premiums
- Safety and Security that embrace data tech solutions will become major factors of choice of where to buy
- Accessibility and convenience to travel to work and shopping without being stuck hours in traffic a priority
- Densification of existing properties with re builds and new developments going vertical to become the permanent trend
- Retail malls to continue to recover post-COVID and many new entrants to come up
- Tourist resorts and destinations that are luxury and exceptional will lead the market
- Top notch schools and hospitals within the local community be a major driver of development
In precise format, above are the key pointers of what to expect in 2023. Some things may change due to unforeseen events that may occur during the course of the year but we should remain optimistic for great things to happen so that we fully recover from the economic troubles that came with the pandemic.