African real estate market projected to outpace global growth through 2029

Africa’s real estate market is projected to grow at an annual rate of 5.58% between 2025 and 2029, more than double the expected global average of 2.69%. According to a report by LEAF Africa titled ‘Real Estate Investment in Africa’, the continent’s real estate sector is currently valued at approximately $17.6 trillion, representing about 2.7% of the total global real estate value.

Growth is primarily driven by rapid urbanization and demographic shifts. The proportion of Africa’s population living in urban areas is expected to rise from roughly 45% in 2025 to 60.4% by 2050. While residential property remains the dominant sector with an estimated value of $14.9 trillion, there is increasing demand for commercial spaces, warehouses, and digital infrastructure, such as data centers.

Nigeria currently holds the largest market share in Africa with an estimated value of $2.6 trillion, followed by Egypt ($1.6 trillion), Ethiopia ($1.3 trillion), and South Africa ($1.2 trillion). Other significant markets include Kenya and Ghana. Despite the growth potential, the sector faces challenges including inflation, currency depreciation, and limited mortgage financing.