Nearly 40 percent of leasing office real estate deals in Africa under negotiation at the beginning of Covid-19 pandemic are facing delays with 30 percent on hold, according to Knight Frank survey. Knight Frank, a market research and consultancy firm, recently published a report which points out that Africa’s real estate market remains vulnerable in the midst of the pandemic.
According to the survey, 30 percent of respondents said that the ongoing pandemic would not prevent them from investing in commercial office spaces in the future, while another 30 percent of respondents remain uncertain about their real estate investment decisions.
A report titled Real Estate Activities in South Africa 2020 said that “The industrial, commercial and residential property sectors and developments in these sectors have been hard hit by the lockdown following the outbreak of coronavirus, which has resulted in estate agents shutting down as property deals come to a halt, and industrial, commercial and residential tenants unable to pay rent. In some cases they have been given relief in the form of deferred payment holidays, rental discounts and limitations on the possibility of being evicted. With the deeds office and municipalities shut in April, no property transfers were expected to take place, and the backlog may take months to clear. Several listed property companies announced they are postponing or cancelling dividend payments.”
For Africa, real estate is among the worst affected sectors during the pandemic, resulting in a loss of 450,000 jobs.