you are an experienced corporate business analyst preparing conclusions for real estate market research for a customer (((analyze this information and give conclusions for real estate market research in Nigeria))) All markets have continued to adjust Ato the pandemic - but each market
has had to adjust in its own way
and the real estate market is no exception.
Over the next 20 years, analysts expect that
the value of global investable real estate will
grow by an average of 5.2% annually to
exceed $85Trn. The investment rationale
for owning real estate remains attractive,
macroeconomic shocks and political
forebodings regardless. The world's largest
black population heads to the polls in 2023.
The pandemic, in its various iterations (the
latest being Omicron as of the time of
writing), delivered more blows to the
economy, ensuring that the Q3 foreign
trade balance recorded negative N3Trn.
Weakening non-oil revenues, while slightly
recovering by Q4 of 2021 nag the present
government. To shore up accounts, the
government took to raise record sums in the
bond market – N2.6Trn by some estimates.
The President signed the Petroleum
Information Bill in a bid to improve energy
governance. Still, the perception of
corruption remains a source of concern.
Grand announcements of government led
expenditures on social projects are expected
in 2022 as the authorities rediscover the
sensitivities of the average citizen.
Millennials and Generation Z now influence
spending in excess of $600Bn globally and
are increasingly savvy in real estate
investing, a fact not lost on brokers in
Nigeria's real estate market. Property agents
report growth in tenant requirements for
apartments in cities – out with the
swimming pool and in with an income
generating short stay apartment. And this
population is on the increase. Data from the
United Nations suggest that Abuja will be
the fastest growing city in Africa, exceeding
6% growth by 2025. Lokoja ranks fourth on
the list with a projected 5.93% growth. This
will make the demand for infrastructure and
housing even more apparent. Commercial
capital, Lagos didn't make the top 5.
The Edo state government signed up the
Persianas Group, developers of the Palms
Grade A mall in Lagos to develop a retail
centre in Benin city and made significant
progress with the German government on
the return of 7,000 artefacts taken from the
Prices in leading cities for land and
residential apartments have moved up.
Studios, 1 and 2 beds are now a staple of
the average portfolio. Second-tier cities
have not been too far behind with
developers launching small sized gated
communities. Warehouses have become
even more critical to the functioning of the
Nigerian economy. Flexible terms and
smaller space requirements have come to
characterise the Grade A office market.
2022 Nigeria Real Estate Market Outlook 4
The migration to e-commerce and remote
working is expected to last long after the
pandemic has passed, altering the
frequency and use of workplaces while
Development Partners International (DPI), a
private equity firm focused on Africa, sold a
portion of its stake in fast food chain, Food
Concepts - the parent company of Chicken
Republic, for an undisclosed amount. The
Federal Executive Council approved
$17.47Bn for the purchase of office block -
Kanti Towers, Victoria Island, Lago by the
Nigeria Maritime Administration and Safety
Agency as its new headquarters. Digital
infrastructure company, Equinix announced
its intention to acquire Nigeria's data centre
and connectivity giant, MainOne for
$320M. Local investors across residential,
retail, healthcare especially have
demonstrated a growing, almost strident
confidence in the Nigeria real estate market.
Ketron Investments bought out retailers -
Shoprite and Purple raised a N5bn Sukuk
Bonds Issue, achieving 100% subscription.
Benin Kingdom. Luxury lifestyle brand -
Montblanc opened its first standalone
boutique in Nigeria
Ayo Ibaru
enabling digital shopping. We expect
demand for warehouses, distribution
centres, and other properties that allow ecommerce will continue to rise. In places
where white-collar occupations are
increasing the quickest, we're also seeing an
uptick in the demand for office space.
Erstwhile local developers are proving more
sophisticated, holding their own when
compared with their African counterparts.
We will however discuss the elephant in the
room, the collapse of the 21-floor luxury