said PWC, adding that “residential real
estate will become more specialized, with
local and cultural differences influencing
how this evolves.”
To expand the residential property mar-
ket in Africa, the analysis said more listed
property funds are likely to loosen their
purses and financially back the new devel-
opments with residential holdings, which
make up 2.5 percent of the listed property
funds, set to increase financing by 2030.
A separate global analysis by FMI
on the wood coatings market said the
growth of the residential property market will be the main driver of the wood
protection products supply trends in the
coming five years.
FMI said “residential end-user is the
largest market for wood protection, driv-
en by maintenance demand for items such
as fences, sidings and decks.”
Overall, FMI said furniture, decking
and siding are the three largest applica-
tions in value terms although “smaller
doors, windows and cabinet applications
are expected to achieve faster growth in
the near future.”
Globally the analyst said “paint is the
dominant wood protection product used
on siding, windows and doors but stains
and sealers are more widely utilized on
cabinets, decks, furniture and flooring.”
In Africa, projected growth in the
housing market will be the main driver of
increased use of wood protection prod-
ucts for the next five years.
Several initiatives by both governments and the private sector have been
launched to develop millions of housing units in sub-Saharan Africa opening
new fronts for the makers and suppliers
of wood coating products as demand for
quality furniture, decking, siding, small
doors, windows and cabinet applications
is set to soar.
For example, the World Bank’s
lending arm International Finance
Corporation has partnered with Chinese
multinational CITIC Construction Ltd.
to set up a $300 million investment
forum for the developing of at least
30,000 housing units across Kenya,
Rwanda and Nigeria over the next five
years. The units are just a drop in the
ocean when one considers that Kenya
alone is short of two million housing
units while Nigeria needs an additional
17 million units.
FMI said: “The growth in the housing
market is the primary driver for the wood
coatings market as homeowners are in-
vesting more in the upkeep of their decks,
floors and siding.”
“Sustained demand from develop-
ment markets and burgeoning demand
from emerging economies will continue
to drive the wood coatings market,”
FMI predicted.
And according to PWC the significant housing investment shortfall has
created opportunities for private sector investors and that Africa’s fast-growing young population will drive
demand for a different type of real estate such as student housing.
Like in the rest of the world wood
coatings markets, Africa’s growth is
likely to be stimulated by “stringent
regulations, rising competition, growth
in unique formulations and new product developments.” CW
