Smart Cities and the Future of Urban Real Estate in Africa

ESV Jenny Olanma Ukaogo-Chika

Africa’s rapid urbanization is both a challenge and an opportunity. By 2050, the continent’s urban population is projected to double, with cities absorbing millions of new residents in search of housing, jobs, and infrastructure. Traditional urban planning models are already struggling to keep up. Against this backdrop, the concept of smart cities technology-driven urban centers designed for efficiency, sustainability, and livability has begun to capture attention. The implications for real estate are profound, raising the question: could smart cities reshape the future of urban property in Africa?

At their core, smart cities integrate digital technologies into urban management. Sensors monitor traffic and energy use, data-driven platforms optimize resource allocation, and digital connectivity makes services more accessible. For real estate, this means buildings designed with energy efficiency, integrated transport systems, and digital infrastructure that enhances both property values and quality of life.

Several African countries are experimenting with the model. Nigeria has Eko Atlantic, a planned city on reclaimed land in Lagos; Kenya is building Konza Technopolis as part of its Vision 2030 agenda; Rwanda is positioning Kigali as a regional hub with smart infrastructure initiatives. While these projects remain at different stages of development, they signal a growing recognition that Africa’s urban real estate must evolve beyond concrete and bricks toward technology-enabled communities.

The promise for real estate investors is significant. Properties in smart cities are likely to command premiums, not just because of location but because of integrated services—renewable energy systems, smart security, automated waste management, and reliable internet connectivity. For developers, the appeal lies in long-term sustainability. Buildings designed to conserve energy and water are more attractive to both investors and occupants, reducing operational costs while enhancing environmental responsibility.

However, the vision of smart cities in Africa comes with hurdles. Cost is the most obvious. Smart infrastructure requires heavy upfront investment in technology, power, and connectivity resources many African governments and developers struggle to mobilize. There is also the risk of exclusion. If smart cities are built solely as luxury enclaves for the elite, they may deepen inequality rather than democratize urban development. Real estate in such areas could become symbols of division rather than progress.

Moreover, technology alone cannot compensate for weak governance or poor planning. A city can have sensors and fiber-optic cables, but if land management is chaotic or housing policies fail to address affordability, the “smart” label becomes superficial. For urban real estate in Africa to truly benefit, smart city initiatives must align with broader social goals—affordable housing, inclusive access, and job creation.

The future therefore lies in balance. Africa does not need smart cities as isolated showcases; it needs smart urbanism embedded in existing and emerging cities. Integrating technology into public transport, waste management, housing, and energy systems across urban centers would create a ripple effect that benefits real estate markets more broadly.

Ultimately, smart cities represent both a real estate opportunity and a social experiment. If implemented inclusively, they could redefine property ownership and urban living in Africa, making cities more livable, sustainable, and competitive. If implemented narrowly, they risk becoming digital islands in seas of inequality. For Africa’s urban real estate sector, the future depends not just on adopting smart technologies, but on applying them wisely to serve people as much as profits.

Jenny, a Registered Estate Surveyor and Valuer, wrote from Abia State, Nigeria.