2021-06-14-莱坊-Africa_Offices_Dashboard_Q2_2021_4页_10mb

Overall Market Performance: The Africa office market in Q2 2021 showed resilience amid COVID-19 resurgence and economic uncertainties, with headline rents remaining subdued in many cities due to lockdowns, currency fluctuations, and political uncertainty. However, nascent recovery signals bright spots, particularly in sectors like professional services.

Key Insights: Occupier demand increased, driven by business confidence and space upgrades, but net effective rents declined in some areas due to concessions. Prime offices experienced higher demand compared to lower-grade spaces, highlighting a "flight to quality" trend. Overall, market activity is expected to remain cautious throughout the quarter.

City Rankings:

• Most Expensive to Rent: Lagos at USD 62.50 psm, with prime rents stable after Q1 recovery.
• Least Expensive: Harare at USD 7.00 psm, despite economic challenges.
• Rental Increases: Accra recorded a 7% quarterly increase in rents due to reactivated searches and new developments like Marine Drive.
• Other Cities: Nairobi saw a marginal 1% rent drop but rising demand; Cape Town and Johannesburg face vacancy increases from supply glut.

Sector Trends: Professional services dominated new office requirements, accounting for 28% of Q2 demand. Businesses prioritized quality space, with relocations and upgrades observed.

Economic Impact: COVID-19 restrictions, including new lockdowns, limited mobility and occupier activity, while economic forecasts for some countries (e.g., Kenya: 20.0% GDP growth, Uganda: 6.4%) influenced market dynamics. Increased foreign investment and job creation in key cities like Lagos boosted office demand.

Future Outlook: Headline rents likely to remain stable in line with global trends, with potential growth in cities recovering from stalling demand. Economic indicators and policy measures (e.g., Tanzania's tax scheme) could drive increased activity later in 2021.