Developed Practices in the African Real Estate Investment Trusts as a Conduit for improving Capital Investment in the African Real Estate Market

Olebogeng Moagi

AfRES from African Real Estate Society (AfRES)

Abstract: Purpose: The establishment of Real Estate Investment Trusts (REITs) has propelled the real estate industry to gain traction as a feasible investment vehicle for both the individual and institutional investor. The purpose of this paper is to assess how the further development of the African REIT market can form a channel to increasing capital investment in the African real estate market. There has been a range of REITs developed which could improve the African real estate market such as Affordable Housing, Healthcare and Green bond REITs. As much as such a variety of beneficial REIT options might seem like an attractive and viable conduit for capital injection into the African REIT sector, many individual investors remain sceptical of choosing African REITs as an investment vehicle. Research has shown that there is a small fraction of individual investors in Africa looking at REITs as an investment option among which, the black middle-class investors form the smallest portion of this group of investors. Such is concerning as these investors happen to form much of the population in the African continent.Design/Methodology: We look at how these challenges can be curbed by developing practices such as implementing sustainable real estate methods or incorporating new trends such as Property technology as part of the management and marketing style for African REITs. The use of these practices are evaluated to assess the impact on property values and increasing investor satisfaction.Value/Contribution: The paper reflects that with the success and evidence of these kind of practices, it will be reasonable to raise the much-needed public awareness about African REITs in the market.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2021-09-01
New Economics Papers: this item is included in nep-ure
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