Nigeria and Kenya have more data on their real estate sector than the rest of Africa, a survey conducted by Sagaci Research, a provider of African market data and analysis, and Grit Real Estate Income Group Limited (GRIT), a pan-African income real estate company, has shown.
Both countries also emerged most transparent in collecting the data, the research firms say, while admitting that measuring data in Africa are quite challenging.
In its 2018 GRETI, Nigeria was ranked 67th position out of 100 countries that was surveyed in 2017. It scored 3.7 out of 5 points, which meant low transparency. Scores with 1.00 is the highest possible score. Kenya was ranked 53rd.
“In this year’s version, only 10 of the 15 African markets have improved, which has been led by Nigeria and Kenya, while African countries upward movement in Global Real Estate Transparency Index (GRETI) in 2014 and 2016 were notable, these were mostly off of a low base,” Jeremy Kelly, a director within the Global Research Programmes Team, said.
Kelly, recognised as a global thought leader and advocate for transparency and data across global real estate markets, will present the African chapter of their market leading Global Real Estate and Transparency Index (GRETI) to 600 of the continent’s leading real estate developers and investors, and lead the conversation on the importance of data and transparency at the ninth annual API Summit & Expo taking place in Johannesburg September 20 to 21, 2018.
Charles Ballard, research director, Sagaci Research, said, “Measuring data is challenging in Africa, but dynamic. The challenge is that Africa’s youthful population, informality and rapid growth makes measurement challenging to measure but ‘particularly dynamic.’
“Younger consumers tend to be less conservative and more open to trying new things – the rapidity with which Kenyan consumers adopted mobile money is an excellent example of this trend.”
To address the challenges of data in African countries, especially Nigeria, GRIT will launch a new data app at the summit.
The app will be home to the most extensive collection of commercial property data points in Nigeria. We are confident it will change the way real estate decisions are made across the continent.” Dolapo Omidire, research analyst, GRIT said.
Forward-thinking and embracing new technology to drive data acquisition and development to improve data access and decision making is an area in which Kelly believes Africa can use to leap ahead of other markets.
Kelly further said, “Africa has an opportunity at this point to utilise blockchain for land registries or transactions; ‘smart’ buildings and infrastructure for facilities management or repair; or new database capabilities for collaborative data sharing between market participants to jumpstart the traditional methods of improving market data and building real estate markets that are fit for the future.”
Kfir Rusin, managing director and host of the 9th API Summit & Expo, said, “Increasing data flow and transparency are absolutely pivotal to the development and deepening of investment in the continent’s property markets.
“Being able to bring global and Africa pioneers together at the API Summit & Expo and aid them in leveraging our platform to elevate the importance of data and transparency as a key driver of investment growth is a primary objective of the conference.”
Source: Business Day