(((ты опытный бизнес аналитик предлагает подготовить анализ рынка недвижимости Нигерии, анализ текста в {}))) {Local investors are stepping into the gaps
hitherto filled by foreign capital. UAC
Nigeria completed the unbundling of its
equity stake in UPDC REIT by fully
distributing its shares to its stockholders.
Purple Urban Limited, completed its N5Bn
Sukuk Bond private placement. The Sukuk
Bonds were issued to fund 94 out of 112
housing units in its urban residential
development comprising mostly 4-bedroom
s e m i - d e t a c h e d m a i s o n e t t e s a n d
penthouses, as well as 2, 3- and 4-bedroom
flats right off Freedom Way in Lekki Phase 1,
Lagos. The bond was 100% subscribed.
Local market participants, from Persianas
and Ketron Investments to Purple have led
the way in mobilising local investment in
Nigeria's real estate market.
HOME COURT ADVANTAGE
Analysts report a 25 - 30% YoY price growth
in gated communities with a few going as
high as 70 - 80% driven by concerns around
future lockdowns and the added protection
from vandalisations. This may exacerbate
the current challenges in the high-end
markets where landlords struggle to fill up
space, retrofitting assets to better
accommodate short stay occupiers. But
management is increasingly challenging.
Then there are management processes
required to ensure that sustained tenancy
payments are guaranteed. These require
funding and as real estate professionals
make more of a case for funding wellconceptualised projects, Eurobonds and
private equity are showing themselves as
viable alternatives.
Security continues to be a priority in the
residential real estate market. This has
fuelled demand for gated communities.
Abuja has seen demand for residential
assets increase because of its position as
one of the more secure locations in the
country. This demand has further driven the
rapid redevelopment of retail, hospitality
and residential assets. Residents report a
pace of commercial activity similar to Lagos
in areas as Wuse, Gwarimpa, Jabi, Wuye,
Garki Area 1, Life camp, Kubwa and
Katampe nodes.
REAL ESTATE
SUMMARY
Abuja has seen demand
for residential assets
increase because of its
position as one of the
more secure locations
in the country
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2022 Nigeria Real Estate Market Outlook 21
As part of its revenue drive, the Lagos State
government reviewed fees for property
regularisation from 25% to over 100% in
some cases. Governor's consent fee is fixed
at 8% of the assessed value with Capital
Gains Tax and Stamp Duty at 2% apiece.
Registration fees are now 3%. The
government also commissioned a 480-unit
housing project in the Ikorodu division
which consists of 40 blocks of one, two, and
three-bedroom apartments, each with a
fully equipped kitchen, storage, and guest
restrooms. Parking, a water treatment
plant, overhead water tanks and seven
transformers are also provided.
Source: Northcourt
Staying in Nigeria's cities
Average rental prices (N000 per Anum)
Source: Northcourt
The good thing about gates
Average Land Prices in Lagos gated communities N'000/sqm
The COP26 conference on climate change
reviewed promises made by governments
around the world to tackle the global
$16Trn real estate contribution to climate
risk. Buildings account for an estimated
30% of worldwide greenhouse gas
emissions and 40% of energy use.
Constantly improving environmental
sustainability, an example being the
adoption of PropTech, sustainable design
software or responsible sourcing of raw
materials, building automation and energy
management systems are critical to moving
the sustainability conversation forward.
At the cost of $1Bn, Dangote Cement 6M
MTPA plant in Okpella, Edo State, was
completed and the firm teamed with
2022 Nigeria Real Estate Market Outlook 22
Madugu Cement and Sinoma International
Engineering Company Limited to build a
5MMT cement facility in the Kembu and
Kwali districts of Gombe state. This suggests
that the benefits of investment in industrial
real estate may be expected in 2022. The
North East Development Commission
delivered over 1,000 completed houses to
the Borno state government to resettle
more than 500 Internally Displaced Persons.
As the nation moves into a pre-election year
and we expect more liquidity in the real
estate market as is typical with the political
gerrymandering and its impact on the
market. This also means that flight to safety
relocations are likely to begin in Q2 of 2021.
The Federal Government has also
commenced compensating Benue state
communities affected by the Abuja-KeffiMakurdi highway project.
The Construction industry faces regulatory scrutiny as real estate markets adjust
GDP Growth figures for Nigeria's economy, construction and real estate industries
Source: NBS
LAND
Land prices grew in almost all nodes
considered. Leading locations as Ikoyi traded
well over the N500,000psm mark with plots
in Banana Island reaching N1Mpsm, where
available. Land in gated communities attract
a premium for the security benefits that they
provide. Prices in second tier cities as Benin,
Abeokuta and Ibadan are also projected to
spike over the next few years. Prime new
town locations attracted more investment,
much of which was local – Eko Atlantic
(Oxygen and Periwinkle residencies) and
Orange Island, Lagos. Other new towns
include Shoreline estate, Alaro city and Isimi
Lagos. Seamless land transactions are a
priority of the central government as
regulators partner with the private sector to
remove impediments. And as the nation
moves closer to the 2023 election cycle,
land prices are projected to grow.}