Advisory Center for Affordable Settlements & Housing

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Quantifying Residential Rental Markets in Africa

Rental is a significant tenure form in major cities across the continent; upwards of 80% of households in Nairobi, Kenya, rent their dwellings, with similarly high proportions in Abidjan, Côte d’Ivoire (78%)1 and Lagos, Nigeria (76%). However, there is relatively little data available on key aspects of the rental market. In most cases there is limited published data available on the profile of renter households, rentals paid, quality of rental stock and operating models, and profile of landlords. At the same time, it can be difficult to find information on the service or product offerings and operating models of finance providers, estate agents, credit bureaus, and property management companies that typically support the sector. It is also difficult to find information on enforced regulations, taxation, and investment incentives.

This project outlines a proposed rental market framework and provides an initial set of indicators that characterize the different components of the rental market. Using this framework, the research identified, analyzed, and presented several existing data sources that provide useful information to populate the various components of the rental framework in four focus countries across the continent, namely; Tanzania, Uganda, Senegal, and Côte d’Ivoire. In addition, the project team investigated various research methodologies to close key data gaps that emerged during the research process. Combined, these findings provide CAHF and the wider housing sector across Africa, with a sound foundation to improve the available data and develop useful indicators that quantify and characterize rental markets going forward.

 


 

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