The Nigerian real estate market struggled from 2015-2016 due to economic and political uncertainties, with rental rates declining and new construction projects stalling. However, the 2017 outlook is positive if the economy rebounds as expected. New developments in office and retail space are projected to increase occupancy and rental rates as demand rises with an improving economy and population. The 2017 national budget aims to boost infrastructure spending and economic growth, which could pull the real estate sector out of its downturn later in the year through higher property prices, construction activity and consumer demand.
The Nigeria Real Estate Market Outlook report by Northcourt Real Estate. This report analyses the residential, retail, office and industrial markets from the investor's perspective. Economic indicators are also assessed.
Lagos (nigeria) real estate investment outlook q1 2018Munachi C Okoye
On the back of a stable, OPEC supported oil price well above its historical lows, Nigeria has emerged from recession into a period of weak economic growth. Following the oil price falls to US$30p/b in early 2016, Nigeria had taken tentative steps towards diversifying the economy away from oil towards agriculture. With a stable oil price and growing external reserves, the pain has eased and our attention turned away from the diversification story to the 2019 elections while we fund our expenditure with borrowing. With the increased borrowing, any sustained deterioration in the oil price will put us back in an even more precarious situation than we were before. Nigeria is living on borrowed time and borrowed money. We trust that you will find our latest report insightful and ask that you forward it to colleagues who have an interest in African real estate markets in general and Nigeria in particular.
Premium Property Outlook: 2015 in Retrospect (Nigeria) VICTOR NKWOCHA
A real estate performance review report for premium developments in Nigeria (Lagos, Abuja and Port-Harcourt) for 2015. Published by Fine and Country, Prepared by Victor Nkwocha
Our latest Q3 2014 report on the Lagos Real Estate Investment market is now available.We hope that you find the report insightful and ask that you kindly forward it to any of your colleagues who have an interest in the African real estate markets.
The Nigeria Real Estate Market Outlook report by Northcourt Real Estate. This report analyses the residential, retail, office and industrial markets from the investor's perspective. Economic indicators are also assessed.
Lagos (nigeria) real estate investment outlook q1 2018Munachi C Okoye
On the back of a stable, OPEC supported oil price well above its historical lows, Nigeria has emerged from recession into a period of weak economic growth. Following the oil price falls to US$30p/b in early 2016, Nigeria had taken tentative steps towards diversifying the economy away from oil towards agriculture. With a stable oil price and growing external reserves, the pain has eased and our attention turned away from the diversification story to the 2019 elections while we fund our expenditure with borrowing. With the increased borrowing, any sustained deterioration in the oil price will put us back in an even more precarious situation than we were before. Nigeria is living on borrowed time and borrowed money. We trust that you will find our latest report insightful and ask that you forward it to colleagues who have an interest in African real estate markets in general and Nigeria in particular.
Premium Property Outlook: 2015 in Retrospect (Nigeria) VICTOR NKWOCHA
A real estate performance review report for premium developments in Nigeria (Lagos, Abuja and Port-Harcourt) for 2015. Published by Fine and Country, Prepared by Victor Nkwocha
Our latest Q3 2014 report on the Lagos Real Estate Investment market is now available.We hope that you find the report insightful and ask that you kindly forward it to any of your colleagues who have an interest in the African real estate markets.
Microclimates of opportunity - Real estate & construction report 2014Misbah Hussain
This report draws on more than 700 interviews with business leaders in 45 economies to understand how the real estate & construction sector is recovering from the financial crisis, where the opportunities lie and what businesses are doing to keep their operations running
smoothly and free from fraud.
Real Estate Facilities Management | Project Services | Vestianvallispvm
Vestian is an end-to-end service provider in the Commercial Real Estate space providing investment & consultancy services, transaction advisory, project services and real estate facility management services
https://www.vestian.com/
In August-September, 2014 issue of Economy Matters, we analyse the recently held G20 Summit; movement in oil prices and Ukraine situation in the section on Global Trends. In the section on Domestic Trends, we discuss the trends emanating out of the recent releases on GDP, IIP, Inflation and Trade. In the section on Taxation, the urgency of implementing GST in India is discussed. The Sectoral spotlight for this issue is on the Food Processing Industry. In Focus of the Month, the spotlight is on improving investment in Infrastructure.
Role of CFO in the Economic Turnaround - What are the Macro Economic Policies...Resurgent India
The Fiscal expansionary response in India which continued since FY 08-09 to arrest the growth decline resulted in high fiscal deficits. This accompanied by continued Euro Zone crisis and gloomy economic trends in major economies contributed adversely, impacting India's exports negatively.
Greetings,
Attached FYI ( NewBase Special 27 January 2015 ) , with energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
• UAE to stick to economic growth forecast for now
• Qatar may build 2nd LNG terminal in Italy
• EU supports LNG bunkering project at Port of Hirtshals
• OPEC chief: Oil at $200 possible with lack of investment
• Oil major BP freezes pay in 2015 to cut costs
• Hess Corp announces 2015 Projects & budget
As this daily news periodical is free for you, we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME meme since 1995
Hawk Energy since 2010
This Presentation about future of real estate. I've tried to explain this thing in a very easy way & understandable manner. I hope, reader will enjoy the reading.
We are pleased to release the November 2018 Africa Market Update covering the economies of Zambia, Nigeria, Kenya, Tanzania, Uganda and Rwanda. This issue is significant for two reasons - one, with Nigeria's general election slated for February 19th, 2019, this issue delves deep in assessing the political risk profile and how the private sector perceives risk in view of the forthcoming poll. Two, November 2018 will be characterized by Monetary Policy Committee meetings in a number of economies in the region including Kenya, Nigeria and Zambia. As such, this issue takes a look at the underlying monetary environment especially with inflation and foreign exchange pressures surging across the region.
Microclimates of opportunity - Real estate & construction report 2014Misbah Hussain
This report draws on more than 700 interviews with business leaders in 45 economies to understand how the real estate & construction sector is recovering from the financial crisis, where the opportunities lie and what businesses are doing to keep their operations running
smoothly and free from fraud.
Real Estate Facilities Management | Project Services | Vestianvallispvm
Vestian is an end-to-end service provider in the Commercial Real Estate space providing investment & consultancy services, transaction advisory, project services and real estate facility management services
https://www.vestian.com/
In August-September, 2014 issue of Economy Matters, we analyse the recently held G20 Summit; movement in oil prices and Ukraine situation in the section on Global Trends. In the section on Domestic Trends, we discuss the trends emanating out of the recent releases on GDP, IIP, Inflation and Trade. In the section on Taxation, the urgency of implementing GST in India is discussed. The Sectoral spotlight for this issue is on the Food Processing Industry. In Focus of the Month, the spotlight is on improving investment in Infrastructure.
Role of CFO in the Economic Turnaround - What are the Macro Economic Policies...Resurgent India
The Fiscal expansionary response in India which continued since FY 08-09 to arrest the growth decline resulted in high fiscal deficits. This accompanied by continued Euro Zone crisis and gloomy economic trends in major economies contributed adversely, impacting India's exports negatively.
Greetings,
Attached FYI ( NewBase Special 27 January 2015 ) , with energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
• UAE to stick to economic growth forecast for now
• Qatar may build 2nd LNG terminal in Italy
• EU supports LNG bunkering project at Port of Hirtshals
• OPEC chief: Oil at $200 possible with lack of investment
• Oil major BP freezes pay in 2015 to cut costs
• Hess Corp announces 2015 Projects & budget
As this daily news periodical is free for you, we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME meme since 1995
Hawk Energy since 2010
This Presentation about future of real estate. I've tried to explain this thing in a very easy way & understandable manner. I hope, reader will enjoy the reading.
We are pleased to release the November 2018 Africa Market Update covering the economies of Zambia, Nigeria, Kenya, Tanzania, Uganda and Rwanda. This issue is significant for two reasons - one, with Nigeria's general election slated for February 19th, 2019, this issue delves deep in assessing the political risk profile and how the private sector perceives risk in view of the forthcoming poll. Two, November 2018 will be characterized by Monetary Policy Committee meetings in a number of economies in the region including Kenya, Nigeria and Zambia. As such, this issue takes a look at the underlying monetary environment especially with inflation and foreign exchange pressures surging across the region.
OBJECTIVE
Covid-19 has gripped the entire world including India with its adverse impact, affecting predominantly all industries and sectors. In these times of economic and financial distress owing to the catastrophic outbreak, we would intend to discuss the influence of Covid 19 on the Indian real estate sector. The sector was already having a bad phase before the outbreak of Covid-19; we shall focus on the opportunities which the pandemic would bring for its revival and the way forward in re-engineering the entire sector.
Northcourt H1 2019 Nigerian Real Estate Market Review reportAyo Ibaru
Security has grown as a critical selector tool in the residential market. Secure gated communities are priced higher than estates perceived to be less so. Investment thinking in property is shifting. Some expect the new administration to devalue the currency with the uncertainty around this delaying property purchasing decisions. Some investors are opting to buy assets out of the country.
Many are looking to sell local assets. On this backdrop is the migration of young and middle-aged professionals to Western economies, a fact not lost on the balance sheets of local agents. The residential real market is gradually picking up. Tenants pushed for better deals with Landlords making little or no reductions. Mini flats, 1 and 2 Bed flats remain favourites.
Vacancy rates in Port Harcourt have moved - but only slightly when compared with EoY 2018. Old GRA, GRA Phases 1, 2 and 3 recorded vacancy rates of 7%, 9%, 9% and 15% respectively. Abuja’s Apo and Gwarimpa are 14% and 2% vacant. Ikoyi and Victoria Island in Lagos state are respectively 41 and 23% vacant.
400,000m2 of Grade-A office space is expected in 2019. Coworking continues to grow as business owners are unable to meet up to the dollar rents obligations for Grade A office space. Nigeria’s commercial real estate market is going green. Most ongoing prime office developments - or those that have been delivered in recent years are a testament to the fact that green buildings have come to stay. The US government acquired about 50,000m2 of land in Eko Atlantic City for the Consulate’s new head office. A 21-storey smart office tower is being constructed in Uyo, Akwa Ibom state at an approximate cost of ₦19Bn, funded via a PPP. Upon completion, it is expected to house leading oil services firms.
February 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Real Estate Industry
COMPANY ANALYSIS : DLF
BRAND ANALYSIS : Coca Cola
Event Report: Guest Lecture on Behavioral Finance
Concept of the month
Dear Friends & Colleagues, Please find attached Feb. 2015 HTW Report for your perusal and information only.
Best Regards
Linda & Carlos Debello
“Your Local Property Management Specialist”
LJ Gilland Real Estate Pty Ltd (http://www.ljgrealestate.com.au)
PO BOX 19
ZILLMERE 4034
(07) 3263 6085
0400 833 800 (Mob 1)
0413 560 808 (Mob 2)
0409 995 578 (Linda)
http://www.ljgrealestate.com.au/index.php?lan=ch Chinese website
https://www.facebook.com/ljgrealestate Please take a moment to like our page and receive updates
http://wp.me/p1qS3N-7Vn Pain & Gain Report for your perusal and information only
How much are real estate costs in the Philippines? KMC MAG Group's Midyear Report offers data and forecast on the Philippines' real estate sector and economy. KMC MAG noted that the combination of a stable economic environment and an administration committed to cleaning up the system have made the Philippines more attractive to potential investors. The report also highlighted that foreign direct investment (FDI) in the country has increased to USD 1.9 billion, with real estate accounting for around USD 57 million.
KMC MAG Group is pleased to present to you the Metro Manila Property Outlook for 2015, which offers the latest data, research, and forecast on the Philippines' top central business districts (CBDs) and emerging CBDs in Metro Manila. Some of the report's highlights:
With a GDP growth of 6.1% and strong macroeconomic fundamentals, the Philippines remains as one of the bright spots in both the global and regional scale.
Driven by strong economic performance, the real estate market is expected to remain buoyant across all sectors this year. Real estate activity remains to be in full swing, with developers allocating massive capex programs amounting to over PHP 300-billion into building townships across the city.
The office sector is still the most wanted asset class, with its robust rental growth due to high take-up from the business process outsourcing industry.
The retail sector also continues to be the top gainer among all sectors, further boosted by the declining oil prices that has increased savings for the economy.
Meanwhile, in the residential market, rates continue to grow although at a more modest rate as well as in hotels and leisure, whose long-term growth is being stifled by lack of sound infrastructure.
In spite of these opportunities, the Philippines' strict foreign ownership policies and lack of solid infrastructure remain as roadblocks towards sustainable and long-term growth for PH economy.
Similar to NIGERIA REAL ESTATE MARKET OUTLOOK 2017 (01) (20)
2. NIGERIA REAL ESTATE MARKET OUTLOOK 2017 Kings Court Realtors
Summary
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 a beneficial read.
Ayodele Thomas
Managing Director
Kings Court Realtors
3. NIGERIA REAL ESTATE MARKET OUTLOOK 2017 Kings Court Realtors
Market Outlook
Nigerian real estate and construction market
post rebasing has been seen to contribute
significantly more to the Nations’ GDP than
previously recorded. However, this contribution
seems to have quickly slowed down showing
negative growth between Q4 2015 and 2016 and
remaining stagnant into 2017. This is in line with
the general growth in GDP, which has seen
decline in the Q1 and Q2 2015, the weakest
since 2013.
The growth moderation of the non-oil sector (real
estate and construction inclusive) in 2015 in
comparison to 2014, is attributive to lower
government spending (due to lower oil receipts),
disruptions to the fuel supply and some
monetary policy actions aimed at managing the
pressures of foreign exchange demand.
Construction companies; small and large,
slowed down over the period in review. Reports
state that over N600 Billion is being owed
construction companies by the Federal
Government. Following this, these firms have
been forced to abandon projects and lay-off as
much as 10,000 workers across the country.
The present political administration has stated
that the past administration failed to release
capital votes since the second quarter of 2014.
In all, 6,525.63km of roads have been stalled in
the country.
The effects of political and economic uncertainty
was far reaching; stalling investment decisions of
households and corporations alike. Real estate
being capital intensive in nature was absolutely
unimmunized to this. Many new constructions,
renting or purchasing decisions have been
stalled till there is a more enabling environment.
Occupiers
It is expected that there will be a notable
increase in leasing activity and take-up,
particularly in recently delivered A-grade
buildings as Tenants take the opportunity to
relocate from Grade B or lower quality office
space to newer Grade A buildings with new or
upgrading tenants. Rental values are poised to
continue on a
downward trajectory in 2017, which will drive
the rental market upward.
With the rebasing of the economy from a
monolithic (oil dependent economy) to other
services, construction and real estate and
technology driven economy, we should see
office demand increasing significantly in 2017,
with most of the expected demand for space to
be in the range of 250m² to 500m².
We expect to see more owner-occupier office
buildings in 2017. Major insurance companies,
oil companies and technology companies are
already taking advantage of the devaluation of
the Naira and buying up prime lands for office
development. Q1 2017 started with the
development of Cornerstone Insurance
headquarter beside Sheraton 4 Point, Victoria
Island. Techno Oil has completed its office
12
4. NIGERIA REAL ESTATE MARKET OUTLOOK 2017 Kings Court Realtors
building in Oniru, Victoria Island in Q1 2017.
Property Market Trend
Lagos Market
A change in overall perceptions has been the
theme for the office market in Lagos over the
past 12 months. After almost a decade of
unsustainably high rents, increasing supply,
tougher economic conditions and all round
uncertainty, markets are correcting.
With over 83,000m² of office space delivered in
2015, and an additional 100,000m² expected to
come onto the market in 2016, 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. While the
development pipeline for office space in Lagos
is expected to slow down significantly after
2016, some pressure is still expected on rental
growth and market activity as the Nigerian
economy struggles to regain momentum.
Port Harcourt
Offices in Port Harcourt are largely
self-occupied, converted or
purpose-built structures for specific
organizations. Smaller
organizations often rent residential
apartments or standalone houses
and convert them to offices. A third-
party office space market as an
investment sub-set is almost non-
existence, with only a handful of
buildings dotting Stadium Road, Olu
Obasanjo Way, Trans Amadi Road and Aba
Road. Residential block of flats on Ikwere Road
have all been converted to offices and shops to
cater to a lower cadre of businesses. In 2015,
rents either stayed constant or improved only
slightly.
Abuja
Prime office space in Abuja is concentrated in
the CBD, Wuse 2 and Garki Area 11. The
development pipeline of mid-range space is
also quite rich in Utako. As expected with any
capital city worldwide, majority of the buildings
are public offices that house various
government ministries, departments or
agencies.
However a number of third party office blocks
dot the Abuja skyline. In few cases, some
Government agencies put up some space
within their buildings for lease. In Wuse 2, Area
11 and 10 (mentioned in order of desirability),
there are various ‘plazas’ that house from as
little as 12 office spaces to over 100 with office
spaces measuring as little as 12sqm to as large
as 100sqm floor plates. Developments of this
kind (Plazas) saw a number of completions in
2015, and in some cases, office spaces were
sold rather than being leased for yearly rents.
3
5. NIGERIA REAL ESTATE MARKET OUTLOOK 2017 Kings Court Realtors
While the Abuja market has been and is
expected to remain a small market, an
increasing number of corporates are seeing the
importance of having a presence close to the
seat of government. In lieu of demand for large
pockets of space in pricy prime grade
properties, we have seen corporates opt for
quality affordable space, residential
conversions and more recently serviced or
virtual offices. To this extent, Landmark / Regus
opened a 50 workstation centre in the central
business district of Abuja during the first quarter
of 2016 and have noted strong demand from
the technology and professional services
sectors.
Real Estate Asset Lifecycle
Source: estate intel
Most organizations spend up to 30% of their
total operating expenditure on rents and
Facilities-related activities, “for example, if you
take a company with turn-over of N1 billion and
you are operating a cost to revenue ratio of
60%, leaving you with a gross of 40% and a net
of probably 25%, it means #200 million of what
you spend relates to maintenance”.
However, facility management cost can be
reduced by developing ‘smart buildings’, that
means concerns and issues related to Facility
Management must be addressed at the design
stage of any real estate construction.
Property Taxes in Nigeria
There are various taxes that apply to real estate
or real property transactions in Nigeria. The
common public perception that there are no real
estate taxes in Nigeria is not correct.
Some of the common taxes that apply to real
property transactions in Nigeria are the
following:
Companies Income Tax and Personal
Income Tax.
Education Tax. (2%)
Value Added Tax. (5%)
Capital Gains Tax. (10%)
Stamp Duties Tax.(75 kobo for every
N200)
State Property Taxes – Lagos State Land
Use Charge Law and the Federal Capital
Territory Property Tax.
Companies Income Tax & Personal
Income Tax (24%-30%)
Withholding Tax (10%)
Property Prices in Lagos (Commercial)
4
6. NIGERIA REAL ESTATE MARKET OUTLOOK 2017 Kings Court Realtors
2017 Property Market Outlook
The outlook for the Nigerian real estate market
in 2017 is positive and will be largely dependent
on the overall performance of the economy as
the demand, supply and price of space is
contingent to the wellbeing of occupiers,
developers and investors.
While the development pipeline for office space
in Lagos is expected to slow down significantly
in 2017. Lagos will continue to take the lead,
Abuja and 2nd tier cities to follow. With over
25,000sqm to be delivered, Ikoyi in particular
may officially become the prime office
destination while Eko Atlantic gradually moves
beyond infancy. Some pressure is still expected
on rental growth and market activity as the
Nigerian economy struggles to regain
momentum.
As liquidity increases to compliment the high
consumer spending culture of Nigerians, retail
business will soar and demand for retail space
will follow. This will also be premised on the
removal of bottlenecks currently felt by all in the
retail value chain; it is expected that reasonable
appeals for change will not fall on deaf ears for
too long.
Similar to the office sub-market, the retail
pipeline is very rich with over 100,000sqm of
lettable space to be delivered within the next 12
months. These projects are primarily led by a
few developers/investors who have successfully
delivered similar projects in the region. It is
however expected that new completions will be
better looking and take into consideration
lessons learnt from past developments.
Beyond the existing pipeline, malls may get
bigger in prime locations (Abuja and Lagos), to
cater to more entertainment features lacking in
existing stock. Such malls will do well to be
located in currently un-serviced nodes such as
Ogudu or Magodo in Lagos. It is also expected
that retail projects will emerge in locations
beyond the south and move towards the middle
belt and Northern states such as Kaduna.
Source: Broll
With the new government Improvements in
trade relationship (especially with China) and
investment with emphasis on the non-oil
sectors, more office spaces will be required to
cater for the new entrants. In all, the real estate
market will be responsive/ reactive to the
positive economic sentiments.
Predictions
The 2017 Budget has been described as the
‘Budget of Recovery and Growth’. With a
budget size of N7.298tn. 2017 budget is 20.4%
higher than 2016 estimates. It provides a clear
road map of policy actions and steps designed
to bring the economy out of recession and to a
path of steady growth and prosperity.
Key capital spending provisions in the Budget
amounts to over N2.24tn (30.7% of total
budget), which includes several infrastructural
projects.
With increased government spending, capital
injection and good forex policy aimed at
stabilizing the Naira, Nigeria economy should
be out of recession by Q3 2017. With economic
growth and rises in property prices and rents
from Q4 2017.
5