Construction & Real Estate
From The Report: Cote d'Ivoire 2018
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In current prices, the construction sector’s value-added was equal to 5.9% of GDP in 2016, according to the BCEAO, up from 1.7% in 2010. Overall, strong demand for residential units and office space, as well as government-led social housing initiatives and falling mortgage interest rates, should underpin continuous development and sales growth over the medium term. This should be bolstered by planned investment under the 2016-20 National Development Plan, which puts a large emphasis on infrastructure construction. The real estate sector has witnessed strong activity in recent years, as stability has returned to the country and a large shortfall in property availability across market segments has attracted international investors and developers. Challenges for the sector include difficulties accessing financing and rising land and cement prices. However, measures are being undertaken to tackle some of these hurdles, including the expansion of domestic cement capacity and the launch of a national land registry.

This chapter contains interviews with Claude Isaac Dé, Minister of Construction, Housing, Sanitation and Urbanism, and Clyde Fakhoury, Administrative Director, PFO Africa.

Articles from this Chapter

Overview

Sustained momentum: Opportunities arise from public works and transport projects, as well as high housing demand
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While high nominal growth in some years was partially a result of inflation, real sector growth also ran in the double digits between 2013 and 2015, averaging 23.9% across the period and standing at 28.3% in 2015, according to the Ministry of Economy and Finances. In current prices, the construction sector’s value-added was equal to 5.9% of GDP in 2016, according to the BCEAO, up from 1.7% in 2010. Côte d’Ivoire’s construction sector has witnessed robust activity since the country’s…

Analysis

Capacity boost: A cement shortage since 2015 leads local producers to invest in factory expansion
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Côte d’Ivoire has faced a shortage of cement since early 2015, as a result of rapid growth in construction activity when large-scale investment returned to the country after 2011. Demand for cement – and therefore its pricing – is also highly seasonal, leading to particular supply pressures between January and May, the dry season when most construction takes place. The seasonality of construction projects usually coincides with the cashew and cocoa harvest, resulting in a lack of transport…

Interview

Building a future: Claude Isaac Dé, Minister of Construction, Housing, Sanitation and Urbanism, on the challenges facing the housing market
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Interview:Claude Isaac Dé What measures are being taken to streamline land title acquisition procedures in Côte d’Ivoire? CLAUDE ISAAC DÉ: Over the past decade, the acquisition of land titles has been the most significant challenge to the real estate sector and has been amplified by exponential economic and demographic growth. Currently, we are working to streamline the land title creation process through its dematerialisation and simplification: we must improve the processing and circulation…

Overview

Increasing supply: All segments work to serve large unmet demand as a result of strong economic growth in the last five years
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Côte d’Ivoire’s real estate sector has witnessed strong activity in recent years, as stability returned to the country and a shortfall in property availability across market segments has attracted international investors and developers. A state initiative to build up the social housing segment is taking off with backing from local and Moroccan developers in particular, having previously faced long delays (see analysis). Strong demand is also driving growth in the mid-range residential…

Analysis

Homes for all: After a few years of delay, authorities and developers are making good on plans to deliver social housing
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In 2010 President Alassane Dramane Ouattara announced plans to build 60,000 housing units. The current deficit is estimated at 400,000 to 600,000 units, with demand growing by 40,000-50,000 units each year. To bridge the shortfall, the state launched the Presidential Housing Plan in May 2013, hoping to add 150,000 units by 2020. Under the programme, developers building social housing would receive incentives including tax breaks and the provision of basic infrastructure by the government.…

Interview

Source of pride: Clyde Fakhoury, Administrative Director, PFO Africa, on sustainability and improving human resources
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Interview:Clyde Fakhoury What are some of the most noticeable trends in Côte d’Ivoire’s construction sector? CLYDE FAKHOURY: Côte d’Ivoire’s national heritage – which is exceptional from an architectural standpoint – has been strongly neglected in recent decades. As a result, most buildings require significant renovation work. There is a growing awareness of the need to consolidate our built environment through different means, such as condominium associations and property,…