Overbidding: the new reality in real estate in Africa

Competition between buyers has been so intense since March 2020 that overbidding has taken hold throughout Africa. This phenomenon, like the increase in prices or the reduction in selling times, is not influenced by the choice to sell with or without an agent, but by the state of the market. In fact, overbidding is defined as the sale of a property at a higher price than the posted price and naturally occurs in a market where demand is greater than supply, and is accentuated in a context of overheating. It is mainly the competition between buyers and the speed of the market that drives up the bidding.

An imbalance in the market

The pandemic has created an unprecedented craze for large spaces and residential rentals among consumers. The number of properties for sale has never been lower, and as long as this inventory is so low and buyers so numerous, the pressure will be high in real estate. By the beginning of 2021, in the most dynamic African markets, more than 50% of the properties reported sold were overbid. For the whole of the African continent, we are talking about a large majority of properties whose sale prices were higher than the posted prices. It is therefore in the interest of both buyers and sellers to use our services to meet their expectations.

Accelerate and simplify the purchase

Knowing that the owner is the person who knows the property best and that it is not only the price that is important, but also the conditions set by the buyer, the possibility of using Dunya Estate speeds up the exchange and simplifies the purchase process.




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