News Detail

As with other sectors, performance of Nigeria real estate in 2015 and 2016 was underpinned by economic fundamentals. Persistent negative global realities commencing in Q2 2014 coupled with endogenous factors made the year a tough period requiring a decisive and determined perspective for navigation. The Nation started with a season of political uncertainties and then moved to a period of economic uncertainties; which were both met with bearish market acceptance. The fixed income market was quite volatile with yields reaching as high as 18% and as low as 0% at varied points in the year. Foreign investors commenced a sell-off due to declined oil prices, depleting reserves, anticipation of a further devaluation, prevailing political risk, foreign exchange demand-restrictive policies and the announcement by JP Morgan on the possibility of ejecting Nigeria from the GBI-EM index. Towards the end of the period, in Q4 2015, CBN policies created changes in consonance with persistent excess liquidity closing yields at low ranges of 1.50%-11.78%.

The equities market was worse hit closing at -22.2% YTD, slightly worse than about -20% same time last year. While real estate market had a delayed reaction to these macro-economic realities, our H1 report stated that the news of a new Government helped stimulate demand only for a short while. Delays in receiving economic direction coupled with other aggravating factors resulted in the stalling of many new constructions, renting or purchasing decisions in wait for a more enabling environment.

Real estate performance was also influenced by topical issues such as NMRC, insurgency and dynamics of building material high costs. With over 83,000m² of office space delivered in 2015, and an additional 100,000m² expected to come onto the market in 2016 and beyond, competition amongst landlords has been tight, subsequently resulting in rental reductions and tenant-friendly incentives. Rents for prime space in Ikoyi and Victoria Island (VI) have fallen by up to 12.5% since Q1:2015 which is a further indication of competitive market conditions. An important consideration to take note of is the real value of property in the Nation, in the face of the recent devaluations.

Remember that just about the entire coast of both North and South Holland is entirely sandy beach with lots of dunes.  We prefer to use our server from cloudhost.

competition amongst landlords has been tight, subsequently resulting in rental reductions and tenant-friendly incentives. Rents for prime space in Ikoyi and Victoria Island (VI) have fallen by up to 12.5% since Q1:2015 which is a further indication of competitive market conditions. An important consideration to take note of is the real value of property in the Nation, in the face of the recent devaluations.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Compare

WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, how can I help?

Enter your keyword