- Thabo Bakwena
Africa’s real estate market is undergoing a profound transformation. While traditional asset classes such as office, retail, and residential developments continue to play a role, the continent’s evolving demographic, technological, and socioeconomic landscape is giving rise to new investment frontiers. For astute investors, the opportunity lies not in what has been—but in what’s coming next.
Guided by insights from industry authorities such as PwC’s Emerging Trends in Real Estate and Knight Frank’s Africa Horizons report, this think-piece explores five high-growth subsectors poised to define the next decade of real estate development on the continent. These sectors are not only answering urgent economic and social needs but also offering scalable, resilient investment opportunities with long-term value.
Digital Infrastructure: Data Centres as the New Core Asset
The backbone of Africa’s digital economy is being built in real-time. With exponential growth in data consumption, catalysed by mobile penetration, e-commerce, and digital financial services, the demand for secure, scalable data storage is surging. PwC highlights the imperative for “robust digital infrastructure,” while Knight Frank notes a steady rise in cloud adoption and investment in fibre networks across both primary and secondary cities.
In this environment, data centres have become a critical enabler of growth. However, success in this space requires more than capital outlay. Strategic site selection—with access to reliable power and connectivity—is essential. Facilities must be designed for adaptability, able to meet future digital demand while incorporating sustainable technologies to reduce energy consumption and carbon footprint. For investors, this is a play not just on real estate, but on Africa’s digital transformation itself.
Logistics Real Estate: The Engine of E-Commerce
As e-commerce reshapes African retail, logistics has become the heartbeat of its supply chain. The demand for modern warehousing, cold storage, and last-mile delivery infrastructure is intensifying, driven by shifting consumer behaviour and urbanisation. PwC refers to the “increasing sophistication of supply chains,” while Knight Frank underscores the impact of online retail and regional trade integration on warehouse demand.
Real opportunity lies in the ability to integrate real estate with technology. Logistics facilities of the future will be smart, data-driven, and strategically located near transport corridors, seaports, and urban centres. From warehouse automation to AI-enabled route planning, innovation will be the defining factor in maximising efficiency and profitability. As Africa’s consumer base grows more connected, logistics real estate will be an essential piece of the value chain.
Purpose-Built Student Accommodation: Investing in the Continent’s Future
Africa’s youthful population is one of its greatest assets—and its most compelling investment thesis. With increasing enrolment in tertiary education and a rising middle class seeking quality learning environments, the demand for modern, purpose-built student accommodation (PBSA) is outstripping supply.
As noted by PwC, urbanisation and education are converging to reshape housing demand. Knight Frank further identifies universities as catalysts for surrounding real estate development. Investors have the opportunity to tap into this sector by focusing on projects that offer more than just beds—integrated living spaces with reliable internet, security, communal amenities, and student support services. Partnering with universities and education providers can unlock long-term occupancy certainty and align development with institutional expansion plans.
Healthcare Real Estate: Meeting a Growing Demand
Africa’s demographic growth brings with it an urgent need for robust healthcare infrastructure. Rising incidences of chronic diseases, an ageing population, and urban migration are all converging to place pressure on existing systems. Both PwC and Knight Frank highlight healthcare as an underdeveloped but increasingly vital sector of the real estate market.
Investment in this space spans a broad spectrum—from general hospitals and outpatient clinics to senior living facilities and specialised diagnostic centres. The key is to anticipate demographic shifts and target underserved markets with growing demand. Moreover, public-private partnerships can serve as a strategic lever to deliver facilities that meet national health priorities while generating steady returns. Healthcare real estate is no longer a fringe consideration—it is becoming central to sustainable urban development.
Affordable Housing: The Moral and Market Imperative
No conversation about Africa’s real estate future is complete without addressing the continent’s housing deficit. With rapid urbanisation outpacing formal housing supply, the need for affordable homes has reached a critical threshold. PwC calls this a “pressing development challenge,” while Knight Frank points to the potential of public-private collaboration in scaling housing solutions.
Innovative financing structures—including mortgage-backed securities, rent-to-own models, and housing microfinance—will be pivotal in making homeownership accessible to low- and middle-income earners. At the same time, new construction technologies and alternative building materials are helping to reduce costs without compromising quality or sustainability. Affordable housing is more than an economic opportunity—it’s a societal necessity that aligns capital with impact.
Looking Ahead: Real Estate as a Catalyst for Continental Transformation
Africa’s real estate market is no longer defined solely by its challenges, but by the opportunities arising from its transformation. Investors who approach the market with a long-term lens—anchored in innovation, inclusivity, and adaptability—stand to benefit from the immense momentum building across emerging subsectors.
By staying attuned to key structural shifts, drawing on research-led insights from players like PwC and Knight Frank, and partnering with both public and private sector stakeholders, investors can unlock growth in ways that not only generate financial returns but also shape the continent’s urban and economic future.
The frontier of African real estate has moved. The question is: who will navigate it with foresight and purpose?
*Thobo Bakwena is the Chief Property Officer at Seventy5 Degrees, a boutique real estate services firm that offers asset management, property & facilities management, transaction advisory as well as development services. He writes this in his own capacity as a real estate professional and Pan African investment enthusiast.
