Nairobi, Wednesday, May 25, 2022—The East African regional real estate sector experienced a positive recovery in 2021 and is continuing with this momentum in 2022. Nairobi, Dar-es-Salaam, Kigali and Kampala, have all witnessed a recovery in demand for office spaces, as employees begin to return to the office in earnest and demand begins getting back to pre-pandemic levels. These gateway cities are showing signs of a gradual return in business confidence, which is expected to drive increased occupier activity throughout 2022.
Speaking on the sidelines of the recently concluded 9th Annual East Africa Property Investment (EAPI) Summit held at the Villa Rosa Kempinski in Nairobi, Wayne Godwin, Head of East Africa and the Indian Ocean, JLL noted that with the industry dynamics having shifted, decision-makers have the opportunity to plan their future real estate strategies based on a new set of increasingly resilient fundamentals. Whereas most companies now have their employees working from the offices as was the case before the pandemic, most have adopted a hybrid working strategy. With their eyes set on reducing costs and making employees comfortable, most occupiers now view real estate as a strategic tool within their business, espousing their brand identity and critical to promote employee wellbeing. Similarly, ESG is now the single biggest priority for investor and occupier clients, driven by the demands of employees.
“Similarly, emerging sub-sectors present a great investment opportunity, with the logistics sector riding on the back of demand for quality warehousing space spurred by drivers such as e-commerce, infrastructure development, and government industrialisation policies formulated to reinvigorate growth post-pandemic”, said Godwin.
During a panel discussion titled East Africa Real Estate Market Outlook, Shadrack Mella, Lead Valuer, East Africa, JLL said: “We are returning to fully working from offices as working from home fatigue is setting in. Another trend being witnessed is the evolution of retail, with growth in demand for neighborhood centers that are more convenient than traditional malls. We are also seeing significant investor appetite for living sectors, particularly Affordable Housing and Student housing, underpinned by the region’s rapidly growing and urbanizing population.
Data Centres are another area in the keen focus of investors. To house data centres, a range of different real estate solutions are required, ranging from build-to-suit industrial units, repurposed industrial or office units, or even build-to-lease data centres. Cities such as Mombasa, located on sub-sea fibre links present an opportunity to establish a world-class network infrastructure. The recent enactment of the Data Protection Law in Kenya means that new data centres will need to be built to support this policy and the fourth industrial revolution in the region.
With a renewed focus on East Africa, JLL, a partner sponsor at the EAPI Summit, will continue to offer a combination of global expertise and research to the sector, while helping real estate investors access global and regional capital markets. JLL has been present in Africa since 2015, with a deep understanding of the local context and opportunities to contribute to the growth of East Africa through its real estate management and investment services, with a focus on commercial real estate. In the past three years, JLL has advised on USD 13.0 billion worth of potential real estate transactions and developments in East Africa and expect this to increase significantly as the market recovery continues.
“We are on the journey, with our clients, to embed sustainable design solutions and support clients with complex investment decisions. Tailoring our offer to meet your ambitions, our team of experts provides strategic advice and uses data-driven insights to determine practical solutions that deliver sustainable outcomes. We are optimistic and excited about the future in East Africa”, added Godwin.
Despite setbacks presented by the pandemic, the strong performance of asset classes such as data centres, industrial and logistics facilities, affordable and student housing along with the recovery of the hotel sector, present a very positive story for the region. In East Africa, the real estate sector can be leveraged to stabilise economies as the region rises from a debilitating pandemic.
Ends…//
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion in 2021, operations in over 80 countries and a global workforce more than 98,000 as of December 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About JLL MEA
Across the Middle East and Africa (MEA) JLL is a leading player in the real estate and hospitality services markets. The firm has worked in 35 countries across the region and employs over 1400 internationally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca, Johannesburg, and Nairobi. www.jll-mena.com
