The number of households in the Middle East and Africa region is rising rapidly, unlocking high levels of unmet potential. Rapid urbanisation and improving longevity result in a rising number of singletons and growing demand for apartments. Households are becoming more educated and home ownership is expanding as mortgages become more accessible. Nevertheless, widespread poverty and lack of urban planning lead to proliferation of slums, depriving a large share of urban dwellers
This report comes in PPT.
Rapid urbanisation, rising education attainment and improving life expectancy, with an increasing number of seniors being left without their spouses, are driving growth in singleton households in Middle East and Africa. While greater need for socialisation and self-fulfilment result in higher spending on leisure and recreation among singletons, living on a single income also results in a budget-conscious mindset and higher priority for low-priced household goods.
Africa is set to witness the most rapid urbanisation among all global regions over 2021-2040. Nevertheless, with most of the urban growth being poorly planned, the region is expected to witness further proliferation of informal settlements surrounding urban areas. As a result, a large share of urban dwellers are set to remain deprived of basic water and electricity services, limiting expenditure on household durables.
Middle East and Africa countries boast the highest fertility rates globally, resulting in a relatively young household head profile. Nevertheless, due to improving longevity, the region is witnessing rapid expansion in elderly household heads. In Africa, lack of adequate social protection is set to constrain discretionary spending for elderly household heads. On the other hand, the rising number of silver consumers in the Middle East is set to foster high-value consumption goods, on account of accumulated assets during their lifetime and more advanced social protection.
As the number of households in the Middle East and Africa continues to grow rapidly, housing shortage remains a dire issue across the region, exacerbated by the absence of proper home financing instruments. Nevertheless, with increasing government focus to improve access to mortgages and support from international organisations, the region is expected witness a rising number of households with a mortgage. Consequently, home ownership rates are expected to improve, providing homeowners with more motivation to invest in a home.
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