Rising Rent Prices Spark Growing Concern in African Real Estate Market

As of May 2025, the African real estate market is experiencing a significant trend of rising rent prices across various cities and regions. This surge in rent prices has sparked growing concern among tenants and property investors alike.

In major cities such as Lagos, Nairobi, Johannesburg, and Accra, the demand for rental properties has been steadily increasing due to urbanization, population growth, and a rising middle class. This high demand has led to a supply shortage, ultimately driving up rental prices in these sought-after areas.

Property developers are seizing the opportunity to capitalize on the growing rental market by constructing more residential buildings and apartment complexes. However, the pace of new construction has struggled to keep up with the rapid influx of tenants, leading to a supply-demand imbalance and pushing rental prices even higher.

With this escalating trend in rent prices, tenants are facing affordability challenges, while landlords and property investors are seeing increased returns on their real estate investments. Moving forward, stakeholders in the African real estate market will need to closely monitor these rent price dynamics and find a balance that ensures sustainable growth and affordability for all parties involved.