This is an area of significant undersupply in the African property sector. In the “Gap “ market where IHS operates in South Africa, there is a growing shortage countrywide of more than 600 000 housing units. Slower delivery post Financial crisis has not stopped many thousands of people from continuing to flock to cities throughout Africa as urbanisation continues to grow along with the fast-growing middle class. The supply constraints cannot be met by thinking business as usual. The immature mortgage market in Africa means that delivery of “for sale “ housing will continue to be slow in the medium term.

Great strides are being made in South Africa and around the world in the non-residential market. Interesting to note that despite the initial focus on the nonresidential market the size comparison puts the total SA residential market more significant than the Non-residential market. In SA and now throughout the continent institutional investors are comfortable investing in long-term non-residential Real estate. The same cannot be said for the residential rental market where supply far outstrips supply. This Real Estate asset class is seen as defensive in the developed world and we should look to get it to that point in developing markets. Progress is being made in this regard.