Maturity of Real Estate Markets in Sub-Saharan Africa: A Comparison between Tanzania and South Africa

Nora Rothacher

AfRES from African Real Estate Society (AfRES)

Abstract: This paper aims to determine the maturity of real estate markets in Sub-Saharan Africa (SSA) with focus on the United Republic of Tanzania and the Republic of South Africa. The present study is based on an empirical investigation of local real estate experts’ perceptions concerning the Tanzanian and South African real estate market. The questionnaire survey is considering the countries characteristics and their real estate markets within categorical rating scales. The individual markets are investigated on the basis of market maturity features such as market transparency, connectivity with international capital markets, commercial building offer, domestic and international corporate base. The comparison between nascent Tanzania and emerging or mature South Africa represents the diversity of the real estate market characteristics in the SSA region. Potential foreign real estate investors are provided with objective information concerning the real estate market activity in order to identify the opportunities and risks in comparison to global investment alternatives. As Sub-Saharan Africa represents all African countries located south of the Sahara the region is characterized by diverse geographical, socio-cultural and historical conditions. Therefore, the real estate market maturity indicators can only be carefully adapted to other African countries and the role of real estate market efficiency has to be analyzed in future studies. Benchmarking tools such as the Market Maturity could bridge the gap between investment opportunities and the absence of foreign real estate investments activity in Sub-Saharan Africa.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2011-08-01
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Persistent link: https://EconPapers.repec.org/RePEc:afr:wpaper:afres2011_113

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