Africa commercial Real Estate Leasing Market is segmented By Property Type(Office Space, Retail Space, Industrial Space, Multi-Family Residential, Hospitality, and Others) By Lease Type (Gross Lease, Net Lease, Modified Gross Lease, and Percentage Lease) By Property Grades (Prime Properties and C Grade Properties), By Contract Duration (Short-term Leasing, Medium-term Leasing, and Long-term Leasing) and By End-Use Industry(Information Technology, Retail, Manufacturing, Logistics & Transportation, Healthcare, Finance & Insurance, Education, Hospitality, and Others)

Introduction

The Africa Commercial Real Estate Leasing Market is witnessing steady growth, driven by rapid urbanization, increasing foreign investments, and a rising demand for office space leasing in Africa, retail centers, and industrial facilities. Valued at USD 958.55 billion in 2023, the market is projected to expand at a CAGR of over 4.1% from 2024 to 2031. This growth is fueled by the expansion of multinational corporations, government infrastructure initiatives, and the rise of business hubs across key African cities such as Lagos, Nairobi, Johannesburg, and Accra. Key factors propelling market expansion include the growing adoption of flexible leasing agreements, co-working spaces, and Africa commercial real estate developments incorporating smart technologies. Additionally, the shift toward eco-friendly, energy-efficient buildings and the increasing focus on public-private partnerships (PPPs) for real estate development are enhancing investment opportunities. The demand for industrial property leasing in Africa is also surging, driven by the e-commerce boom and supply chain modernization efforts. As businesses continue to adapt to evolving workplace trends and regulatory frameworks, the Africa commercial real estate market is expected to surpass USD 1,309.21 billion by 2031. Market participants are increasingly focusing on innovative leasing models, mixed-use developments, and digitalization of real estate services to cater to the regions dynamic economic landscape.

Market Dynamics:

The Africa commercial real estate market is experiencing steady growth, driven by rapid urbanization, increasing foreign direct investment, and the expanding presence of multinational corporations across key cities. Rising demand for office space leasing in Africa, retail centers, industrial property leasing in Africa, and logistics hubs is shaping the market landscape, with businesses seeking flexible, cost-effective, and strategically located leasing options. Additionally, the shift towards smart, energy-efficient buildings and mixed-use developments is attracting investors looking to capitalize on the regions evolving real estate needs.

Despite its expansion, the market faces challenges such as infrastructure deficits, regulatory complexities, and economic fluctuations that impact lease affordability and property development. However, growing government initiatives, public-private partnerships, and improvements in urban planning are helping to mitigate these challenges. Sustainability is also becoming a key focus, with an increasing push toward green building certifications, eco-friendly construction materials, and energy-efficient property management solutions to align with global environmental standards.

The rise of co-working spaces, build-to-suit leasing models, and digital transformation in real estate services presents significant opportunities for market innovation. Companies are integrating AI-driven property management, IoT-enabled smart buildings, and blockchain-based leasing contracts to enhance transparency, efficiency, and tenant experience. Additionally, the growth of e-commerce and last-mile delivery networks has spurred demand for industrial property leasing in Africa, making logistics real estate a key investment segment.

Key trends shaping the Africa real estate market trends include the adoption of flexible lease agreements, transit-oriented developments, and the expansion of business districts to accommodate growing enterprises. With the increasing demand for retail and mixed-use spaces, landlords and developers are focusing on modern amenities, security enhancements, and innovative leasing strategies to attract tenants. As economic growth and urbanization continue, the market is expected to see sustained expansion, catering to businesses and investors seeking dynamic and resilient Africa commercial real estate solutions.

Segmental Analysis:

Based on Property Type, the Africa commercial real estate leasing market is segmented as Office Space, Retail Space, Industrial Space, Multi-Family Residential, Hospitality, and Others. The industry is dominated by Industrial Space with a value of USD 182.81 Billion at growing at a CAGR of 4.8% during the forecast period. The rapid expansion of e-commerce, manufacturing, and logistics sectors has fueled demand for warehouses, distribution centers, and fulfilment hubs across key regions. Additionally, the rise of last-mile delivery networks, trade corridor developments, and government-backed industrialization initiatives is driving investment in modern, high-tech, and strategically located industrial properties to support Africas growing supply chain and manufacturing ecosystem. The Multi-Family Residential category is growing at a CAGR 4.5% during the forecast period. The increasing urban population, rising middle-class income levels, and growing demand for rental housing are driving the expansion of this segment.

Based on Lease Type, the market is categorized as Gross Lease, Net Lease, Modified Gross Lease, and Percentage Lease. The Net Lease category dominated the market with a value of USD 290.54 billion in 2023 and is expected to grow at a CAGR of 4.5% during the forecast period. This leasing model is preferred by investors and landlords due to its ability to transfer operating expenses, property taxes, and maintenance costs to tenants, ensuring stable income streams and lower financial risks. The rising demand for long-term, flexible, and cost-efficient leasing structures, particularly in industrial, retail, and office spaces, is further driving the growth of Net Lease agreements across Africas expanding commercial real estate sector.

Based on Property Grades, the Africa commercial real estate leasing market is categorized as Prime Properties and C Grade Properties. The Africa commercial real estate leasing market is dominated by C Grade Properties with a value of USD 317.97 in 2024 and growing at a CAGR of 4.5% during the forecast period. This prevalence is largely due to the rapid urbanization and population growth in these nations, leading to increased demand for affordable and accessible commercial spaces.

Based on Contract Duration, the market is categorized as Short-term Leasing, Medium-term Leasing, and Long-term Leasing. The market is dominated by Short-term leasing with a value of USD 237.34 Billion in 2024, and growing at a CAGR of 4.5% during the forecast period. The increasing demand for flexibility, cost efficiency, and risk mitigation has driven businesses, especially startups, SMEs, and co-working space providers, to opt for short-term leases. Additionally, the rise of e-commerce, pop-up retail stores, and temporary warehousing solutions has fueled the preference for short-term leasing models, allowing tenants to adapt to market fluctuations, seasonal demand, and evolving business needs without long-term financial commitments.

Based on the End-Use Industry, the Africa commercial real estate leasing market is categorized as Information Technology, Retail, Manufacturing, Logistics & Transportation, Healthcare, Finance & Insurance, Education, Hospitality, and Others. The industry is dominated by Logistics & Transportation with a value of USD 209.56 Billion in the year 2024 and growing at a CAGR of 4.8%. The rapid expansion of e-commerce, cross-border trade, and supply chain modernization has significantly increased the demand for warehouses, distribution centers, and fulfilment hubs across key logistics corridors. Additionally, government-led infrastructure projects, improvements in road and rail networks, and the rise of free trade zones are further driving investment in industrial and logistics real estate, positioning Africa as a strategic hub for regional and international trade.

Based on Country, the market is categorized as Ghana, Zambia, Mozambique, Morocco, Kenya, and the Rest of Africa. Ghana and Kenya are among the fastest-growing markets, driven by rapid urbanization, foreign direct investment (FDI), and expanding commercial hubs. AS of 2024, the Ghana Commercial Real Estate Leasing Market is valued at USD 161.17 Billion and growing at a CAGR of 4.4% during the forecast period. In Ghana, cities like Accra and Kumasi are experiencing increased demand for office spaces, retail centers, and industrial facilities, fueled by rising middle-class income levels and government-backed infrastructure projects. Similarly, as of 2024, Kenya Commercial Real Estate Leasing Market is valued at USD 304.69 Billion with a growing CAGR of 4.7% during the forecast period. Kenyas real estate market, particularly in Nairobi and Mombasa, is seeing strong growth due to the expansion of multinational corporations, improvements in transport networks, and the booming logistics and e-commerce sectors. Both countries benefit from strong economic policies, business-friendly environments, and growing investor confidence, making them key players in Africas commercial real estate landscape.

Competitive Analysis:

The Africa Commercial Real Estate Leasing Market is highly competitive, with key players focusing on strategic partnerships, infrastructure developments, and innovative leasing solutions to strengthen their market presence. Leading companies in the industry include Broll Ghana, Jones Lang LaSalle (JLL), CBRE, CBC Properties Limited, Goldkey Properties, Knight Frank, Seeff Mozambique, Regus Group, HassConsult, Grit, Atterbury Ghana, Avenue Properties, Acorn Properties Limited, Wonda World, African Land, Danco, CPK Real Estate, and Coral Property International, among others. These firms are actively investing in smart buildings, sustainable property developments, and digital leasing platforms to cater to Africas rapidly evolving commercial real estate needs.

Key Developments in the Industry

• On May 20, 2023, Jones Lang LaSalle (JLL) partnered with a major African real estate fund to develop a high-tech logistics park in Nairobi, Kenya, aimed at enhancing e-commerce warehousing and distribution capabilities. The project aligns with the growing demand for modern industrial real estate in East Africa.
• On August 15, 2023, Broll Ghana announced the expansion of its property management services in Accra and Kumasi, introducing smart office spaces and co-working hubs to cater to the rising demand for flexible, short-term leasing solutions in Ghanas business sector.
• On November 5, 2023, CBRE launched a real estate investment platform focused on West African markets, aiming to attract foreign direct investments (FDI) into commercial real estate, including retail, hospitality, and mixed-use developments.

The Africa Commercial Real Estate Leasing Market is poised for steady growth, driven by rising urbanization, expanding business hubs, and increasing demand for flexible and sustainable leasing solutions. Innovations such as smart office spaces, co-working hubs, and green-certified commercial buildings are reshaping the industry to meet evolving tenant preferences and sustainability regulations. While challenges such as regulatory frameworks, infrastructure gaps, and economic fluctuations persist, key players are actively investing in modern property developments, digital leasing platforms, and eco-friendly buildings to enhance market resilience. With the growth of multinational investments, expansion of logistics and industrial sectors, and rising demand for mixed-use developments, the market presents significant opportunities for future expansion across Africas key commercial hubs.

Segmentation:

By Property Type

• Office Space
• Retail Space
• Industrial Space
• Multi-Family Residential
• Hospitality
• Others

By Lease Type

• Gross Lease
• Net Lease
• Modified Gross Lease
• Percentage Lease

By Property Grades

• Cans
• Bottles
• Tetra Paks

By Contract Duration

• Short-term Leasing
• Medium-term Leasing
• Long-term Mid-Range Leasing

By End-User Industry

• Information Technology
• Retail, Manufacturing
• Logistics & Transportation
• Healthcare
• Finance & Insurance
• Education
• Hospitality
• Others

By Country

• Ghana
• Zambia
• Mozambique
• Morocco
• Kenya
• Rest of Africa
• Middle East and Africa

Research Methodology

At Stats and Research, we employ a rigorous, data-driven research methodology to ensure that our market research reports provide accurate, reliable, and actionable insights. Our structured approach integrates qualitative and quantitative research techniques, leveraging advanced data analytics, statistical modelling, and market intelligence tools to deliver well-rounded market perspectives.

Our research framework consists of four key stages:

1. Research and Data Collection

Our data collection methodology is built on a three-pillar approach, integrating:

• Primary Research We conduct direct engagement with industry leaders, key executives, product managers, investors, distributors, regulatory bodies, and end-users through structured interviews, surveys, and industry consultations.
• Secondary Research We analyze company financials, government reports, regulatory filings, investor presentations, whitepapers, trade association reports, and industry publications to develop a foundational market understanding.
• Product or Services Mapping We analyze product portfolios, service offerings, and revenue segmentation to determine company contributions at global, regional, and country levels. This helps assess market share, product penetration, and competitive positioning of the key companies, providing insights into industry trends and growth opportunities.

Key Data Sources:

• Government and International Databases OECD, FAO, IMF, World Bank, WTO, National Statistics Bureaus, etc.
• Industry Journals & Publications Technium, Science and MDPI, MarketLine, ResearchGate, etc
• Company Reports Annual reports, press releases, investor briefings, regulatory disclosures, etc.
• Trade Associations & Market Intelligence Databases Industry insights from financial institutions, manufacturing groups, and professional bodies, among others.

This comprehensive approach ensures that all research findings are based on credible and verified data sources.

2. Data Pre-Processing and Standardization

To maintain data accuracy and consistency, our methodology incorporates a data preparation phase that includes:

• Data Refinement Identifying and resolving gaps, inconsistencies, or anomalies in collected data.
• Standardization Converting data into uniform formats and measurement units for seamless comparison.

This structured approach ensures that all research inputs are clean, validated, and optimized for accurate market analysis.

3. Market Estimation and Forecasting

Our market estimation model integrates both Top-Down and Bottom-Up approaches, ensuring a well-rounded and validated market assessment:

• Top-Down Approach We begin with a macro-level market size estimation, breaking it down by region, industry segment, and product category, using economic indicators and market dynamics.
• Bottom-Up Approach We aggregate data from individual companies, product categories, and regional markets, ensuring micro-level accuracy in our estimates.

Each forecast model is tailored to market-specific characteristics, ensuring precision in future projections.

4. Quality Assurance and Validation

To maintain the highest level of data accuracy and reliability, our research undergoes multiple layers of validation:

• Data Triangulation Cross-verifying insights from primary and secondary sources to ensure consistency.
• Expert Review Panels Collaborating with industry professionals and market analysts for validation.
• Client & Stakeholder Feedback Ensuring research findings align with business needs and market expectations.
• Plausibility & Consistency Checks Conducting historical data validation and time-series tests to ensure logical market estimates.

This rigorous validation process guarantees that our insights remain credible, precise, and actionable.