Jones Lang LaSalle real estate services across North Africa

North African countries are becoming increasingly attractive real estate markets. Improved business climate in the region, lack of quality supply and emerging local and international demand from key feeder markets are leading to various opportunities for investors, developers and operators. Across the region, Jones Lang LaSalle is a leading player in the real estate market and hospitality services market. The firm has worked in over 25 Middle Eastern and North African countries and has advised clients on more than US$ 200 billion worth of real estate, hotel and hospitality developments. Jones Lang LaSalle’s services address the entire real estate development cycle offering comprehensive and creative investment solutions tailored to the region.

Algeria As with other MENA economies, Algeria’s economic reforms are being implemented to diversify the economy away from oil & gas revenues and create a broader economic base from which to achieve growth. These diversification plans extend to sectors such as telecom, real estate, construction and tourism etc. The country has sought to increase its transparency in doing business and improve security. This, coupled with its strategic location (as a supply base for the European and African markets) has created increased interest from a number of multinational companies over the past 5 years. Most real estate sectors of the market are currently facing a shortage of international quality supply. Continued population and economic growth on the back of reform and privatisation initiatives is likely to fuel additional demand for quality products across all asset classes. However, particular opportunities appear to exist in the residential, hotel and commercial office sectors of the market.

 

Egypt While the uncertainty in the capital markets has impacted investor sentiment worldwide, the underlying fundamentals of the real estate market in Egypt remain strongly intact.  The Egyptian real estate market is cash-based and is not overburdened with debt financing, which is a quality that is not present in most countries. With a population of approximately 18 million, Cairo is the world’s 10th most populated metropolitan area and by far the largest in the Middle East and North Africa.  Cairo’s significant property market has recently been undergoing several positive trends driven by its sheer size and depth.  As a result, the market is seeing increased interest from both developers and investors, and the Egyptian property market is now on the radar screen of all the major master developers in the Middle East and North Africa region.  Strong interest is also emerging from global investors, attracted by Egypt’s stable economy and huge consumer base of 80 million people.

Libya Libya’s economy is heavily dependant oil & gas revenues. However, The Government is actively pursuing a plan to diversify by investing in other sectors such as: tourism, real estate, transportation and industry etc. Libya’s focus has long been to invest in African countries and still remains one of its top priorities today. The real estate market is currently experiencing a surge in activity across all asset classes. Recent improvements of international relations and a number of government initiatives have encouraged investors to enter the Libyan market resulting in a wave of large-scale projects in either planning or construction stages. Taking the shift in city dynamics in Tripoli into account opportunities for investment in retail and hospitality may arise.

Mauritania Located south of Morocco, Mauritania has two major cities; Nouakchott & Nouadhibou. Nouakchott, the capital, has approximately 850,000 people while the economic capital Nouadhibou, has a population of approximately 120,000. The major contributors to the economy are exports of iron ore and fish. The real estate market in the country is largely undeveloped with apparent disparities in terms of standard of living. A number of initiatives are under study relating to the overall infrastructure provisions, including the development of a zoning plan for Nouakchott, a new water treatment plan and the upgrading of Mauritania’s power generating capacity. This plan is expected to open the door to real estate investment and development as the country is undersupplied with quality real estate products.

Morocco Morocco appears to among one of the most dynamic markets in the area as it has been experiencing a surge of activity in the real estate industry. The country has long been considered the gateway to Europe given its strategic location in northwest Africa. Over the past decade, a number of social, economic and political reforms have been pursued. Driven by positive macroeconomic indicators and proactive governmental policies, Moroccan real estate market recorded strong performances for residential, commercial and hospitality assets. One important driver has been a government initiative to boost tourism through “Vision 2010”, a plan intended to increase Morocco’s tourism capacity and attract 10 million tourists to Morocco by 2010. This has resulted in a major boost as most future capacity is planned within mixed-use developments that often feature residential, retail, leisure (golf and sporting facilities) in addition to hotels and resorts.

Sudan Khartoum is the largest city by population in Sudan. It is also the seat of the government, the hub of international and local trade and the cultural heart of the nation. These factors have all contributed to the increase in demand for residential units over the past few years. The Sudanese government has committed to a plan of revamping the infrastructure in Khartoum through renovating streets and building bridges. Mostly driven by the wealthy segment of the population and a large number of Sudanese living abroad, these groups expect quality real estate products hence constituting an important target market for investors and developers.

Tunisia Tunisia’s tourism and hospitality infrastructure has been built largely through domestic public and private investments. With the emergence of the mixed use developments trend, Tunisia started to attract increased interest from foreign investors capitalizing on the strategic role played by tourism and on the rising standards of living of an already strong middle class. The modernization of the retail sector, the branding trend and the growing integration with the European Union markets are being supported by a dynamic real estate market and an ambitious framework. .