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The New Way To Invest In African Real Estate & Infrastructure

According to a quote attributed to Andrew Carnegie, America’s first billionaire, “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today (should) invests his money in real estate”.

Whether this statement still holds true is debatable but some of the most influential people are around are real estate investors.

China’s richest man, Wang Jianlin owns the Dalian Wanda Group and he’s been able to successfully merge real estate with entertainment.

The United States recently elected a real estate investor in Donald J. Trump as it’s President. Donald Trump has made his wealth by investing in real estate projects as well as selling the Trump brand across the world on real estate projects.

Nigeria’s Tony Elumelu holds controlling interests in Transcorp a company with over $1billion in real estate assets.

Data from JLL (a real estate consulting firm) shows that over the last decade, $1 invested in real estate would yield up to 20 times more than if this was invested in the US S&P 500.

Real Estate has always been the preserve of an elite few. However, as usual, technology is beginning to disrupt this industry.

Airbnb, allows people to rent out rooms in their home, thereby allowing home owners to earn money from real estate assets. Airbnb is now the largest temporary accommodation provider in the world and is valued at $30 billion.

The New Way To Invest In African Real Estate

The way real estate is funded and the way people invest in real estate has also changed.

Real estate returns in North America and Europe offer better returns than stock and shares. However, returns in African real estate offer up to 6 times the return in North American/European real estate.

The reason for Africa’s higher real estate return rate is demand and supply factors. There are shortages in mall spaces, residential accommodation, office spaces, manufacturing facilities and other real estate facilities. On the flip side, there is huge demand for such facilities because of the growing middle class across Africa.

Imagine you had the opportunity to invest in China’s real estate 15 years ago.

Afriscaper is a real estate platform that provides transparency and simplicity to investing in African real estate.

What Afriscaper does is to provide a transparent and simple way to invest in institutional quality real estate in Africa by leveraging on our 32-step stringent pre-vetting steps. Companies that pass this pre-vetting stage are then handed over to PWC, the global audit & consulting firm for due diligence.

Only then are real estate projects listed on the Afriscaper platform and you simply choose the projects that interest you and invest in them. Afriscaper offers you a low entry investment point as investments usually start at $1,000 to $5,000.

Going back to Andrew Carnegie’s quote, there are now more opportunities than ever for everyday investors to make money from real estate. What are you waiting for?

The African Infrastructure & Real Estate Platform

This article has been collated by Afriscaper, an online marketplace for real estate & infrastructure investing and allows the pooling of funds from multiple people to foster direct investment in specific infrastructure & real estate deals. Learn more about Afriscaper.