Macroeconomic growth translates into higher national, corporate, and personal income. On a macro level, both rapidly rising population and the major trend towards urbanization are leading to high demand for residential housing, especially in the cities.

Many countries in Africa are experiencing a construction boom that is set to last for years to come. High pent-up demand for residential housing and rising incomes of the rapidly growing middle class offer an interesting playing field for property developers. The demand for office buildings and new city hotels will remain strong on the back of solid macroeconomic growth and the rising interest of international companies in accessing African markets.

Inflation rates in most African countries are significantly higher than in the developed world. Inflationary periods are generally good for the appreciation of real estate prices.
The price level for buying or renting properties depends on a broad range of factors, the most important being the relationship between supply and demand, location, purchasing power, availability, terms and conditions of financing, and type of use.

Mortgage financing is still in the early stages of its development in Sub-Saharan Africa except for South Africa, which is a developed market. Where access to mortgage loans is limited and interest rates are punitively high, very few people are able to obtain finance for their homes. As a result, most local property markets are far removed from any risk of a bubble developing

...@young i agree...generally speaking the standard of living has indeed seen an upward trend most people arent where they were 10-20 yrs ago and going forward hopefully will be even better,with the improvement of the standard of living and increase in disposable income real estate seems like a viable investment for many at the moment,demand for houses may marginally ease but it wont go burst for the next few years.Very low levels of inflation would translate to very low interest rates fundamentally mortgage rates would be low too,an example in point is the US where the 30 year mortgage rate is 3.78%, the 15 year rate is 3.04%,if this kind of rates would come to Kenya most def the housing boom will go burst,the see sawing inflation rate,not very stable ensures that mortgage rates will be for a longer period upwards of 10%,limiting those who can take the mortgage.