by Peter Stokes, Partner, dhk Architects and Kgalalelo Mosime, Senior Interior Designer, dhk Interior Design

Despite the need to navigate challenges such as international geopolitical crises, the impact of climate change, and regional conflict, East Africa remains the most buoyant region on the continent. This was the key takeaway from the East Africa Property Investment (EAPI) conference, held in Nairobi in early May. The premier property networking event in the region reconnects investors, developers and industry leaders from Africa and globally. The theme this year, Positioning for Opportunity, was apt for the summit which presented a refreshed platform for developers and investors seeking to capitalise on the East African opportunity. It was exciting to learn how East Africa is working hard to be the next main hub and how the banks, investors and developers are supporting that growth.

A 2024 report by the African Development Bank Group (ADBG) projected East Africa's growth to rise to5.7% in 2025, an increase following a forecast of 5.1% in 2024. In addition to the region’s emergence from the Covid-19 pandemic with a strong economic recovery in 2020, and its rapid economic rebound in 2021 and 2022, the report notes that “East Africa has continued to set a standard for antifragility on the continent…despite a slowdown in 2023, driven primarily by conflict in Sudan.” The report pointed to projections that the region is poised to return in 2024and 2025.

With these prospects, East Africa remains attractive for investment and development. But the question becomes, how do developers and investors position themselves for the EastAfrican opportunity.

Rising investor confidence

East African economies continue to impress, with country-specific factors such as population growth between 2025 and 2029, rather than global tail/headwinds, being the primary driver of regional GDP growth. Proven performers such as improving political stability, stabilising interest rates, and development demand in Tanzania and Zanzibar, Kenya, Uganda, Rwanda and Ethiopia support the impetus. Kenya and surrounding countries, for example, are recording GDP growth projections between 2025 and 2029 which are higher than the continent’s traditional economic powerhouse of South Africa. This reflects higher investor confidence in those countries compared with the SADC region.

The opportunity for doing business in the region exists, and is growing. The region is seen as part of the African 'circuit' alongside Cape Town's Table Mountain and food culture, the Kenyan Serengeti migrations, the Maasai Mara, Gorillas of Uganda and Rwanda and the beaches of the Seychelles. Tourism, particularly in Kenya, was cited as a growth area. In 2024, Nairobi was awarded Africa's Leading Business Travel Destination at the 2024 World Travel Awards. For designers, this presents an exciting opportunity to explore how hospitality and interior design could, and arguably, should, shape the African tourism industry.

Shifts in lifestyles and population demographics

Population growth is changing how people live and work. In particular, this trend is shifting work patterns and people’s expectations. Millennials and Gen Z, are among the influx of people moving back home after spending time abroad, bringing with them are defined sense of luxury, and desires and expectations that differ from what previous generations considered to be luxury. An important shift is the urge to preserve the environment. In this respect, the clear message to designers is the need todesign spaces that are more agile and that respond more to the melting pot of cultures living and working in the same spaces. Design can no longer be considered in isolation.

This is most seen in the need for inner city regeneration and the provision of accommodation, amenities and services for young professionals and students. This is paired with a need for additional schools and tertiary education centres as well as growth and enhancements in healthcare.

The rise of mixed-use developments is also shaping the urban landscape to respond to changing lifestyles, in the face of global volatility and policy uncertainty.

Bringing experience to bear in these developments will be key; our developments such as the multi-tenure Conradie Park in Cape Town, Oxford Parks in Johannesburg, and the new masterplan for Highland Park in Harare are examples of how this experience can support the recognised need for more integration in new communities in East Africa.

Tech scenarios

Technology is also a key driver. In particular, Kenya's tech sector is experiencing significant growth with increased investment from major global players such as Meta (which owns WhatsApp, Facebook and Instagram), driven by the ubiquitous growth of internet access and smartphone usage.

Notably, artificial intelligence is seen as an enabling tool in the property industry; there was are cognised agreement that AI could and should be used as an assistant rather than a replacement. The technology is here to stay, and we need to find a way of effectively and safely integrating it into our work. Within our own BIM team, our research and development (R&D) team is briefed to test new software and artificial intelligence (AI) technology workflows to improve how BIM is delivered, and how we deliver architectural designs. At the same time, in each scheme, our urban designers, architects and interior designers consider how to promote and facilitate human interactions. While AI could be prompted to design a building, the human nature of how people interact and use the space and surrounds cannot be digitally replicated.

In summary

East Africa presents growing opportunities to do business. This year’s event provided dynamic and meaningful insights, new connections and a platform to drive the East African property and hospitality sector forward. We look forward to continuing some of these conversations with industry colleagues at the Africa Property Investment Summit in Cape Town in June and September, respectively. It's a very exciting time to be an African, and involved at the forefront of its economic and socio-economic development.

-Ends-

dhk Partner Peter Stokes attended the conference this year together with Senior Interior Designer Kgalalelo Mosime from dhk Interior Design. On the final day of the summit, Peter moderated a session entitled “The role of mixed-use design in promoting dynamic future living spaces: a deep dive into space planning, architectural integration and city planning in East Africa”.