Why Real Estate in Africa Is a Smart Move — If Done Right

However, real estate in Africa is not a “buy and forget” investment. Without proper safeguards, real estate investment can quickly turn into a costly mistake.

Key Risks Every Investor Must Understand:

• Land banking risks: Acquiring land in the motherland is very exciting and is a long-term goal for many in the diaspora. However, leaving land undeveloped for long periods can expose it to encroachers, squatters, or boundary disputes. In some cases, land left idle is wrongly assumed to be “abandoned,” creating legal and community challenges.

• Leasehold obligations: Don’t just get excited and buy land because it’s cheap. Failure to develop the land within the agreed timeframe can lead to penalties, or even loss of the land.

• Due Diligence: Lack of proper research over who owns the land can led to multiple claims over the same land. Major headache!

• Ignoring local issues. Customary, and family land issues can create endless land disputes and loss of land. Follow the process speak to eg the chief, the paramount chief, the elders and family heads, all interested parties. Yes, go find their brother who left for the US 20 years ago...and get his signature!

• Regulatory. Ignoring or not checking up on land-use laws & policies can lead to loss of land or your property being knocked down - even years later.

• Regulatory changes: As developing countries race at speed to modernise, planning laws, zoning rules, or land-use policies can change at any time. This can affect your plans if not properly monitored. It is important to stay abreast of real estate and investment rules and regulations.

Africa offers real opportunity but invest wisely and develop responsibly.

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About the author: Rachel Okello - Rachel is a Solicitor based in the UK who specialises in UK Immigration law. Rachel has a special interest in African repatriation for the Diaspora.

Disclaimer:
The information shared in this post/blog is for general information purposes only and does not constitute legal, financial, or investment advice. It should not be relied upon as a substitute for professional advice. Readers are encouraged to carry out their own due diligence and seek independent legal and professional guidance before making any real estate or investment decisions.