For every great invention, there must be a solution being provided, and for every solution, there must be a problem that is discovered.
One way or another, every great product solves a problem, and the greater the problem, the greater the impact; the African real estate market is such one illustration.
To understand what makes African real estate such a viable opportunity, we must primarily understand one of the greatest problems that plagues it so much.
Why Investing in African Real Estate?
There’s that standard pitch that we are so used to hearing, almost textbook-replicated: it’s always a look into the urbanization of the country, then a rise in the middle class, tied back into how they will need infrastructure to support them. That demographic then becomes the perfect fit for that investment.”
If you can get a real estate advisor to even get you this far, that’s an impressive one; most end at showing you amenities and how much footage you’ll have in the room and then maybe a payment plan to soothe you. However, regardless of how much you’ll pitch this to some investors and how good this looks on paper, the reality on the ground seems far from the truth.
Most African real estate investors always speak of how risky it can be, and the numbers even tell a more worrying story.
Research done by major publications across Africa has a similar record to show. It’s either they have interacted with poor risk management or there are usually some sort of issues with the titles or some projects that they have invested in just get abandoned altogether, even after money has been collected. And all this collective sentiment brewing across the investors in the industry has heavily impacted how confident any of them are when an investment about real estate starts. All their eyes can see are red flags even when there are hardly any.
A more interesting fact is that the Journal of Business and Management Sciences at Kenyatta University showed in their research that in Nairobi alone, an estimated 30% of recorded property transactions involve some sort of legal dispute.
A whole 30%, just think about it. That’s one in every 3 property transactions taking place. And this is Nairobi, one of the more mature markets on the continent, which gives us a prediction into whatever is happening in the more rural, less sophisticated markets. Interestingly, that’s just what we can see. The story across other markets is similar – be it Kampala, Accra, Lagos, or Kinshasa.
And what this does is that it creates an environment where the general notion is the industry is divided before someone gets deep into it. And even more, it becomes much harder for people to distinguish who is authentic and who isn’t because they all look alike at face value. And most end up choosing not to invest altogether, which affects the capital flowing into the industry.
But for those that understand what real estate can do, they are always plagued with the question, “How do I get in and take advantage of it!?”
In the end, most investors will just back out and find alternative vehicles of investment that feel less risky. But that presents an even greater opportunity; the investors who know what to look for and how to navigate this caveat end up in a situation where there is an oversupply of great developers that can be trusted. They seem to have found the solution to the trust problem.
We know it too and we aren’t going to gatekeep. Let’s give you the easy hack they are using that you can use too.
Why Investing with VAAL?
There’s one tiny, tiny litmus test that makes life so much easier with every real estate pitch. You can use this in the future. (We’d advise just listening to the pitch and asking them this right after; it’s always an interesting reaction to watch for .)
A very simple statement, “Show us the building you completed 5 years ago.”
8 words that seem to make the world stop. We don’t mean the one you’re currently selling, or the project you intend to launch next quarter, or the one you collaborated on. No, show us the one you completed and handed over 5 years ago with residents fully living in it and who are impressed with the quality of the builds and how well you’ve managed the property.
Interestingly enough, most developers can’t pass this test. They are either too new (they’ve barely done anything in the past) or are serial launchers (they always have some sort of revolutionary project they’d like you to buy into and hand over very fast to you), or the project has degraded so badly they are unwilling to associate with it anymore.
Well. Here’s what we have to say concerning that.
VAAL Kenya
When we just launched Moon Valley – our 15-story twin-tower Dubai-style apartments in Nairobi – we basically used the off-the-book pitch like everyone else; after all, that’s all we had by then. “Luxury standards brought to Nairobi.” (Revolutionary, right?) Everyone is practically making the same claim now; however, we actually followed through with it and three years later, we delivered it, handed over the keys, and residents moved in – not late, not different than what they saw in renders. It was just on time and to the standard we promised.
And that was just the cover of the book. A few years down the road, the real feedback started coming in. Residents who were receiving their rental income started calculating their return on investment. 5-7% was what the industry was proud of, generally calling it a great investment – residents, on the other hand, were seeing up to 12% on average, meaning that they were basically outperforming the market without even trying. Outright looking sharp.
And the story was catapulted by Wilma Towers in Kilimani and Elite Residence in Westlands. This time, we tested the theory a little different: units in locations that we knew could drive similar results coupled with the classic VAAL touch: delivering to the utmost standard in record time. The right buyers saw the opportunity again and jumped at it.
By 2024, we had garnered a reputation in Nairobi for excellent delivery, with excellent finishes and record-high returns on investment. All things, undisputed.
VAAL Ghana.
Now with Kenya, it had been proved then that the methodology could be transferred across the entirety of Nairobi. It was now time to test whether this too was workable across different regions with completely different dynamics.
Here comes Accra.
We entered Ghana with basically the same plan, even more deliberate this time. We identified highly sought-after areas (Cantonments and Airport City), then focused on the parts where the demand was greatest but with limited supply, and then delivered exactly what that demographic wanted or even superseded it. That was the plan in brief.
Harmonia Residence launched in February 2021 in the Airport West Area – a unique rectilinear form 17-floor tower culminating in a curved terminus, poised as a mixed-use building with impressive lifestyle amenity integration. Harmonia Villas followed that very month in Cantonments, again – 8 luxury villas in a gated community, each with a private pool for the more private ultra-rich segment of that demographic.
The reception was even better than we could have predicted! In July 2023, just 1 year into construction, the VAAL Real Estate Ghana Chief Executive Officer, Alaa Zayed, exclaimed in an interview with MarcoPolis, “The Harmonia Residence is now 75% sold out with less than 35 units remaining in the last phase.”
Anyone with the slightest experience in the condominium real estate market will clearly affirm to you this; that kind of demand is very telling and speaks volumes. In a market where most developers struggle to achieve 40-50% sales before completion, having this percentage sold out not even halfway into construction spoke clearly of our methodology; that it wasn’t just working, it was leading the market.
Harmonia Villas replicated the same story: around the same time, just a year into construction, only one single unit was left, which was a clear demonstration of what the luxury segment was responding to and how we had positioned ourselves at the forefront of that demand.
VAAL Uganda.
And finally, we arrive in Uganda, where the story reaches its newest and yet the most interesting (and most relevant) part of the story.
You see, when we entered Uganda in early 2024, people that knew us were perplexed as to why we’d seem to have entered a much younger market as opposed to the more mature Accra and Nairobi, with multiple luxury projects, several finished developments, and a sea of credible developers. Uganda, however, seemed like an afterthought to most people, yet that somehow might have justified why it should have been the perfect choice – a diamond in the rough, a pearl in an oyster.
Uganda is very peculiar as a nation: home to one of the youngest populations on Earth, second only to Niger, with a median age of just 15.9 years and 76% of its population below the age of 30, according to the United Nations Population Fund. Kampala, its capital, is projected to have its population peak at about 7 million by 2035, and there’s going to be a rapid infrastructure spike due to its involvement in the 2027 African Cup of Nations. That’s a nation basically on the verge of a real estate spurt! And knowing that, we did something about that, something Tall, Rich and Handsome.
Cadenza Residence is a clear demonstration of how we responded. Standing at 25 storeys tall (notwithstanding the 3 below-the-ground basement floors and the double-heightened mezzanine ground floor) and rising over 80 meters, it is planned to be the nation’s tallest residential tower. This alone is a sharp representation of what luxury living could look like for the people of Uganda.
This is because a project of such magnitude requires the right factors to be in place for it to work out as it should. Starting with its location in Nakasero, it targets high-ranking diplomats that seek international standards that they are used to when they travel. Couple that with the amenity package we had in mind – 16 world-class luxury amenities to integrate into their lifestyle featuring a heated swimming pool, fully equipped fitness gym, business center, and children’s play area, among others.
And with The Bridge, we thought, why not take it a notch higher to a whole different level. This time, twin towers are connected by a skybridge (and a sky cafe located within glass walls), and over 25 lifestyle facilities have been created, giving rise to a totally new living experience that could be found only in separate parts of the world.
Invest the Right Way
Now as you can clearly see in the story, this definitely hasn’t been one about glossy brochures and fancy render videos. Yes, we always intend to go above and beyond; it has been very evident. Not one of our projects isn’t unique in both form and function. But above that we have also demonstrated that the brochure is just a peek into the world of what’s possible for us.
And that’s the scary bit for most developers. Those that invest with us are usually impressed by how close we get to the renders and even supersede what the renders could demonstrate. Working with us almost feels like entering the pages of a fancy real estate magazine and actually living in it. That’s the tangible proof investors with us have gained confidence in.
Not in the billboards we have in the cities, not in the pitches our property consultants seem to excel at delivering – but in the fact that if anyone wanted to see what we can do, they are just a drive or even flight away. And if reluctant to do so, multiple online reviews from our clients are existential proof that what we talk about isn’t theory; it is practical testimonies.
Every market is different – each brings its own set of rules, challenges, and demands. But we’ve shown that with the right approach, you can consistently deliver excellence. Now, investors and buyers have real benchmarks to compare against. And when you choose VAAL – whether in Kenya, Ghana, or Uganda – you’re not just buying a place to live or rent out. You’re choosing a company that’s raising the ceiling for what African real estate can be.
Reach out to us at +256 765 500 000 or through our website www.vaal.co.ug to get started on the road to investing with us.
FAQs
Is real estate in Africa a good investment?
Yes, many African cities are witnessing rapid urban development, increase in property demand, and infrastructural development making it a great choice for investing in real estate.
How can I tell if a developer is a reliable one?
A reliable developer should have completed projects, a track record of delivery, a professional procedure of carrying out their operations, and experience in various projects.
Why are luxury apartments gaining popularity in Uganda?
This is due to the increased demand by prospective investors who seek comfort, security, facilities, and professional management close to urban centers where business thrives.
What do I need to consider when investing in off-plan property?
Make sure to check the following: history of the developer, completed projects, time frame for completion, legal issues, location, and demand for the property in the future.
