Browsing: Real estate boom

Construction has experienced a boom in the past 2 decades in East Africa. The construction sector is among the hardest hit at 70 per cent as the coronavirus continues on its rampage worldwide.www.theexchange.africa

COVID-19’s effect on the construction market in East Africa

Industry and Trade

In 2017, 11 of the 43 major infrastructure projects in East Africa were in Kenya and while these numbers may have shifted, the dynamics have not changed much for the region.

For the past 20 years, East Africa has experienced an unprecedented real estate boom which has transformed the skylines changing the building landscape and inventory.

While the demand continues, especially for affordable housing targeting the low-income bracket, the shopping malls and office spaces are outpacing demand leading to declining returns in the sector for some.

The East African region still has a high and unmet demand for warehouses, hotels and student hostels as more and more students continue seeking education far from home.

Read: Intra-regional trade could create 2 million new jobs for East Africa

Over the course of time, construction has primarily focused on high-end assets due to the belief that they delivered higher margins and higher returns …