7 African Cities Poised to Benefit Most from Real Estate Tokenization
Feb 25,2025
by Jay M
Africa’s real estate sector is growing quite fast. According to a 2024 Economist Intelligence Unit report, by 2035, several cities on the continent, including Luanda, Dar-es-Salaam, and Kinshasa, will boast populations of more than 10 million people each.
Another survey done last year by global real estate consultancy firm Knight Frank highlighted the investment opportunities that could become available due to the increasing demand for quality housing in several African cities.
But which of these expanding cities would benefit most from real estate tokenization? Let’s take a look.
1. Accra, Ghana
Accra has been experiencing a real estate boom backed by stability and growth. Ghana’s strong score of 96 on the Fragile State Index is a testament to its fidelity to democracy and the rule of law, establishing a secure political environment that draws investors.
According to a report by Ghana Investment Promotion Centre (GIPC), the country’s residential real estate market offers a substantial average yield range, spanning from 10% to 13.5%, with prime average achieved rent being US$2,200 – US$3,000 /m2/month as shown in Graph. However, a high mortgage interest rate averaging 24% makes property ownership difficult for most citizens.
Ghana plans to commercialize real estate this year, driven by a growing demand for affordable housing and urbanization trends. Currently, it has a housing deficit of approximately 1.8 million units, highlighting the need for significant investment in residential development. In addition, it recently inked a deal with private sector developers under the government’s “One District One Factory” initiative, aiming to boost industrial real estate and warehousing facilities.
Chaintum estimates that a significant portion of Ghana’s GDP could be attributed to real estate growth—roughly 5-10%—as shown by similar trends in other African countries. Thereafter, once these commercialization efforts are fully implemented, the country could address the high mortgage interest rates and housing shortages.
Graph 1
2. Cairo, Egypt
With more than 21 million residents, Cairo is Africa’s largest urban area and a key player in the continent’s real estate sector. However, liquidity challenges persist despite its realty market being valued at over US$1.58tn.
In addition, the government plans to spend $987 million to ramp up investment in its real estate sector, taking up roughly 5% of its total allocation for investment as shown in Graph 2. As a result, Cairo alone could match the global real estate tokenization adoption forecast of $3 trillion by 20230. That said, Chaintum notes that Cairo is more advanced than Accra, signaling perhaps that the latter is behind in blockchain infrastructure and digital property exchanges.
If Egypt successfully tokenizes its real estate properties within the next year or two, the adoption of real estate tokenization in Cairo could surprise even the most optimistic expectations. We expect most properties to be digitally tradable and accessible to global investors via blockchain platforms. By 2030, if it were to launch its own tokenization initiative, it would account for 15% of all urban property transactions, which would be a significant leap in digital asset adoption in Africa.
Graph 2
3. Dar-es-Salaam, Tanzania
Dar-es-Salaam is one of six African cities on track to become a megacity by 2035, with its population growing past 8 million. Alongside Addis Ababa, Abidjan, and Kampala, the coastal powerhouse is projected to have one of the highest growth rates on the continent.
Tanzania’s government has shown interest in blockchain technology. In October 2024, the semi-autonomous island of Zanzibar, two hours away from Dar es Salaam, set up a sandbox regulatory framework to encourage blockchain startups.
“Innovators will have the opportunities to work on pilot projects, collaborate with experts, and receive mentorship from industry leaders,” remarked Zanzibar’s Director General of the e-Government Authority, Seif Said.
Given Dar-es-Salaam being well known as a prime destination for tourists, we believe its tokenization of commercial properties such as hotels and offices is likely to unlock significant investment opportunities, particularly from international investors seeking fractional ownership in high-demand properties. Even if the sector was to go completely fractional a few years from now, Dar and its realty investors probably would require robust blockchain infrastructure and regulatory frameworks to facilitate secure and transparent transactions. By 2040, Dar-es-Salaam’s real estate market will contribute approximately 40% of Tanzania’s GDP, driven by urbanization and tourism growth. Tokenization will also attract younger, tech-savvy investors, as over 70% of Tanzania’s population is under 30.
4. Johannesburg, South Africa
Johannesburg boasts a GDP exceeding $130 billion USD, making it one of Africa’s wealthiest cities, contributing nearly 16% to South Africa’s economy.
With more than 5 million residents in its metropolitan area as of 2020, the city has one of the continent’s most sophisticated real estate markets. Maybe because of this, the sector suffers from high entry barriers, making real estate ownership a pipe dream to many.
Worth noting, some of the country’s financial institutions are already exploring blockchain applications. For example, Standard Bank and ABSA are experimenting with tokenization for cross-border payments and trade finance. Similarly, Water Finance, a South African reverse mortgage provider, raised $1.6 million through tokenized assets on the Stellar blockchain in 2024.
While Johannesburg may commercialize fully its real estate tokenization initiatives by 2027, it should have a massive data and technological infrastructure advantage. While other African cities invest only in basic blockchain frameworks, Johannesburg can leverage its advanced financial services sector and existing tech hubs to integrate blockchain with artificial intelligence (AI) for real estate applications. AI improves with more data, so it should be able to evolve its tokenization platforms more rapidly than others, testing and validating new features in “shadow mode” before full implementation.
5. Lagos, Nigeria
Lagos is another of Africa’s largest cities, a bustling metropolis home to more than 17 million people. It is also a hotspot for blockchain innovation, with the Lagos State government leading the charge in real estate tokenization.
In 2021, PwC Nigeria estimated that the country held as much as $900 billion worth of dead capital tied up in residential real estate and agricultural land.
To solve the problem in Nigeria’s most populous urban area and raise revenue for the state government, Lagos authorities unveiled plans to tokenize real estate on the blockchain.
Nigerian communication scholar Joko Okupe described the initiative: “By leveraging technology and innovation, we can unlock ‘new money’ that will enhance Lagos State’s ability to provide better social amenities and economic opportunities for Lagosians.”
The city’s shift to blockchain, which will cost ₦500 million, could help streamline land transactions, invigorate the property market, and attract investors who had previously hesitated to invest in the sector due to fears of fraud.
6. Nairobi, Kenya
Nairobi, the capital of Kenya, has a population of at least 5 million by 2025, and the number is set to increase exponentially.
According to the Kenya National Bureau of Statistics, the property sector in Nairobi has witnessed rapid growth, with an average 9% increase in value annually.
However, there exist challenges such as high mortgage rates (averaging 12.5%) and lengthy property registration processes, which hinder investments. Nonetheless, a solution could be on the horizon; blockchain firms AlphabloQ and OwnMali have been admitted into the Capital Markets Authority of Kenya’s regulatory sandbox to test blockchain-enabled real estate tokenization.
This aligns with the growing need for real estate digitization in the country, with KEBs denoting an increase in the usage of software in residential rent collection by agents, as shown in Graph 3 below.
While the concept may still be new, it will likely appeal to the city’s younger and more tech-savvy population, who may not have the financial muscle to acquire personal property or invest in high-end real estate projects.
Graph 3
7. Rabat, Morocco
Morocco’s capital is home to nearly 2 million people and is a key player in the country’s expanding digital economy. The Moroccan government has shown its appetite for blockchain technology through initiatives like Digital Morocco 2030, which aims to digitize important sectors, including real estate.
“Digital technology constitutes a structural shift in our approach to the world around us,” said Morocco’s King Mohammed VI at a past meeting of African finance ministers.
The country’s urbanization rate is estimated to go up by 5.4% annually, which means Rabat’s real estate sector should be booming.
Morocco is able to scale its tokenization efforts every year, amassing a growing share of the North African real estate market. Meanwhile, the government is prioritizing mixed-use developments and smart city projects, such as the Bouregreg Valley Redevelopment Project, which incorporates blockchain and smart home technologies. Perhaps because it believes its real-world urban renewal projects can attract foreign investment and create sustainable urban environments, Rabat is positioning itself as a hub for innovation in real estate.
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