Posted on Wednesday, January 25, 2017
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. Will Landlords be able to transfer the loss to renters via increased rent, or will the reduced demand continue to stay/reduce prices thereby creating new real property values? This report offers an overview of the Nigeria real estate sector from 2014- 2016 with a focus on the prime markets of Abuja, Lagos and Port Harcourt. It closes with an outlook for the sector in 2017. We trust you’ll find it
Posted on Wednesday, March 2, 2016
It’s irrelevant what newspaper you read, what property expert you listen to, what real estate websites in Nigeria or online property site you visit, or your perception about the property market. In 2016, the rental property market will be crowded with a variety of options for tenants looking for residential homes for sale or commercial properties for sale due to the prevailing realities of over-supply and low property demand, as a result of slow economic growth and high unemployment. Meaning more properties competing for fewer Tenants
Posted on Tuesday, September 29, 2015
Moving is not only stressful and hard on the family but can usually affect kids as they are being forced to leave their schools, friends and family. Chances are there will be tears but these tips may help ease the shock and make the experience more positive.
Posted on Tuesday, July 21, 2015
(An excerpt from The Guardian, July 20 2015) The entire concept of intellectualism in professional practice speaks of the deep appreciation of ideas and principles governing the profession in focus. It will involve a continuous, keen and focused participation in a rounded form within the entire spectrum of that profession through attainment of both academic and professional qualifications within that profession.
Posted on Friday, May 15, 2015
We have successfully gone through a most interesting season of elections. Several landmark changes occurred and now we have a new President elect. This was possible because of our citizens, the Nigerian people. There will be no elected officers if there were no citizens therefore, citizenship is at the core of our nationhood. Now is the time to push the fundamental core of our citizen rights/benefits as a major policy trust of this new administration by achieving a “people based housing policy”.
Posted on Thursday, November 13, 2014
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