Global megatrends, such as rapid urbanisation and demographic changes, will drive growth opportunities in the real estate industry across the African continent over the next five years, according to PwC.

Ilse French, Real Estate Leader for PwC Africa, said: “The pace of change in the world is accelerating, with a series of transitions, known as global megatrends, transforming the way in which business and society operate.”

“More and more, investors around the world are seeing the growth potential of Africa, in particular its substantial demographic edge. Economic growth, improving political stability and ongoing investments in infrastructure are opening up previously inaccessible markets,” she added.

The recent PwC report entitled ‘Real Estate: Building the future of Africa’ provides an assessment of the current state of the real estate industry across Africa and demonstrates how the megatrends will drive growth opportunities in key African markets.

The report also considers the real estate market in ten selected countries in sub-Saharan Africa (SSA).

The report shows that the opportunities across the African continent are significant and span every sector.

"In almost all markets the demand for high-quality retail, office and industrial space continues to outstrip supply as international and local occupiers respond to new economic opportunities. Huge shortfalls in residential property across the continent will give rise to private investment on a grand scale," the report said.

Furthermore, a lack of local funding for infrastructure projects provides a platform for new private partnerships with the public sector.

Shifting demographic trends and changes in consumer behaviour are also likely to create a huge demand for new and different real estate by 2020 and beyond.

Projected forecasts of 20% net annual returns from investing in shopping malls, office blocks or industrial complexes in countries across the continent continue to draw in new investors.

French said: “It would be easy to underestimate the impact of global megatrends on Africa. After all, Africa’s real estate markets have traditionally lagged behind developed and many developing economies. Levels of investment in real estate in Africa are low by a global standard, while significant challenges exist in exploiting potential opportunities.”

“However, our research suggests the impact of global megatrends on Africa will be huge. This will create a diverse range of opportunities for the real estate industry Africa – opportunities that often differ from those available in more developed markets,” she said.