18 predictions that would shape real estate in Africa

Making predictions and forecasts of trends that will shape our real estate industry requires a leap of faith, but if we are willing to look, it may provide some meaningful insights that will help us navigate into the future. Whether you are thinking about building homes for sale or going into mortgage to grow your real estate empire, know that real estate is constantly changing due to dynamics such as changing tastes, advancement in technology and access to finance.

We must be able to identify with some degree of confidence the changes taking place to guide our strategic decisions as investors, builders, surveyors, financiers and agents. Practitioners who can get it right will be separated from the rest. Several things are certain in a few years from now, some already taking place.

Big demand for condominiums, apartments and similar shared properties. Condominiums and similar shared properties will be in high demand as the strategy (by both government and industry players) to solve the housing demand/supply imbalance. This trend will be driven largely by growing middle-income earners with smaller family sizes.
Shift from private development to mortgage. Due to the fluidity of global events, technological breakthroughs and financial market shifts, we envisage a dramatic shift from private incremental development for mortgage. In fact, we will see a growing proportion of the industry controlled by mortgages.
Introduction of new legislations on the built environment, (building codes, Scaffolding, site safety measures) and their strict enforcement. This will restrict private incremental building. It will increase the costs of private residential development and have a great positive impact on estate developers and investors.
Mortgage rates will drop: The good news for mortgage holders and aspiring homeowners from 2040 onwards is that mortgage rates will be drastically lower than the current rates. The Governor of the Bank of Ghana for instance sees a strong case for adjustment in monetary policy favoring lower mortgage rates. The mortgage rates will begin falling rates once it becomes confident that economic growth will pick up, unemployment will decline and inflation will start to move back.
Solar will be in high demand: Currently, a growing proportion of property owners are financing the installation of rooftop solar power. This would even be greater in the coming years. I believe developers should be incentivised to install solar and alternative energy storage systems as part of their packages. The solar idea makes a lot of financial sense because, despite the initial outlay for solar panels and installation, a typical household will save a substantial amount of money a year which they could use to pay off mortgages more quickly.
Online brands will rule the market: In the coming years, successful developers are those who will be able to build an online reputation for their portfolio and work. The reason why this will happen is that property buyers and sellers will be looking online first to find your contact information and audit your credentials and footprint. Developers should take advantage of this. Buyers will be able to make informed decisions quicker about property. The easy access to information will hold real estate developers accountable. The availability of information will help distinguish between good and bad developers.
Mass marketing by developers, investors, and agents: With the gradual domination of social media as the main tool for broadcasting information and messages, developers and brokers will have to invest some resources in building their online presence to remain competitive: WhatsApp, Facebook, Linkedin, Snapchat, Instagram, etc. Buyers and sellers will be relying on these channels for viewing property. These will take the form of accessing information about the property, which could be anything from a video tour to photos, etc. This will be one of the best ways to market a home in 20 years.
Specialisation instead of generalization. Currently, real estate developers and agents are generalists, able to “sell, buy, and build anything. But in the coming years, the best developers and agents will have to differentiate themselves by specialising in specific segments of the markets as a way of being different. In Ghana, we will see more of the likes of Trasacco Estate Development Company who provide luxury home features for the up-market and the likes of Lakeside Estates for the low market. 
Meeting the demands of Generation Z.We will have the most sophisticated, refined, heterogeneous group of consumers - a new troop of Generation Z (I mean people born after 1995), who will quickly be taking over. Globally, this generation is now leaving University and is expected to hit 2.56 billion individuals globally by 2045. They will represent over half of the continent’s population by that time. These are people with a vast diversity of needs, financial situations and lifestyle preferences.  Developers will have to be able to construct and market to meet their tastes and special needs.
Rise in short-term rentals: This will create an opportunity for large property owners or single-family owners. Priorities will range from renting a room occasionally for extra cash to renting entire vacation homes at three to five times the local price because they can access a global community of renters.
Demand for smaller living tiny apartments and in a few cases mobile living will be a solution to increasing housing density in big cities. This will become more of a norm and will drive up operating income on existing apartment stock. This likely won't have a huge effect in 2025 but maybe 10 years after. (We will see many individual tenants in a single condo)
Tax reform will likely reduce ownership benefits: Under the new tax laws that would be in place, homeowners 25 years from now won’t be enjoying the many tax benefits for ownership today. This has the potential for decreasing sales. Currently, property owners don’t pay taxes such as rent tax, property rates, property gains tax, income and sales tax, etc. We envisage that these tax holidays will be capped to a certain amount meaning that property owners will only be able to deduct a lesser amount than they currently do.  The overall impact of the new tax code on the real estate market will become more clearer as time goes on.
The hottest properties will be in the south, along the coast: The biggest increases in home sales are expected in the south and along the coasts. In Ghana, places like Sekondi-Takoradi, Cape Coast, Accra, Tema and lesser-known towns like Sogakope, Ada, Winneba, Salt-pond, Elmina and Elubo will be the hottest places for property sales. It is envisaged that there will be sales growth of around 30 % or more for properties along the coast as against 15-20% in Ghana for example.