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TRANSCRIPT
REAL ESTATENIGERIA.
OUTLOOK &TRENDS FOR
IN
NIGERIA REAL ESTATE INDUSTRY is growing at a rate of 8.7% and it is now the sixth largest sector in our economy.
Rental rates in Lagos is one of the highest in the world with achievable rents of more than $1,020/sq.m (about =N=186,000/sq.m) annually.
The Real Estate Industry in Nigeria has witnessed positive growth in the last 55 years of Nigeria’s nationhood.The National Bureau of Statistics (NBS) made positive remarks of upward trend in the real estate sector in recent years.
This was reported in the Industry News (Property News) in June 2015.June 2015.
TREND
The Real Estate Sector grew by 5.9% and contributed 8.37% to the GDP in the 4th quarter of 2014 alone.
The real estate business in Nigeria has gradually moved from obscurity to its position of fame in the country
TREND
Another interesting report was from PricewaterHouseCoopers (PWC), who puts the value of the real estate sector in the country at $9.16 billion in 2014. PWC is one of the approved rating rms internationally.
PWC projections further says growth rate will increase the value of the real estate industry to $11.36 billion in 2015 and $13.65 billion in 2016.in 2016.
Nigerian real estate is growing at a rate of 8.7% and it is now the sixth largest sector in our economy.
GROWTH
Commercially, the sector is driven by the inux of institutional, foreign and private businesses into the country as well as the growth of local established businesses (thanks to local contentpolicy) and multi-national oil companies across the cities of Lagos, Abuja and Port-Harcourt.
Rental rates in Lagos is one of the highest in the world with achievable rents of more than $1,020/sq.m achievable rents of more than $1,020/sq.m (about =N=186,000/sq.m) annually.
RATES
Class Category
High Income
Medium Income
Low Income
Class Sub-Division
High – High (HH)High – Medium (HM)
Medium – High (MH)Medium – Medium (MM)Medium – Low (ML)
Low – High (LH)Low – High (LH)Low – Medium (LM)Low – Low (LL)
Comment
Investors in the real estate sector
Homes retailed now to the MH and the MM.They are the buyers of homes currentlyhomes currently
Watchers and waiting
CLASSCATEGORIZATION
10%
35%
55%
Class Category
High Class
Medium Class
Low Class
CLASSDISTRIBUTION
These are the existing problems facing the real estate industry:One of the most difficult challenges in the sector is the access to loan-nance. The sector needs long-term debt nancing, but it is not available.
The Banks are more interested in short-term funding (1-12 months) and in rear cases medium-term loans (1-2 yrs.). This is not what the sector needs.the sector needs.
Under-development of mortgage market (mortgage loans represent less than 1% of the nation’s GDP).
CHALLENGES
The economic policies of the government do not lay much emphasis on mortgages like other sectors of the economy. Interested investors therefore wants to watch rst, before they invest.
This sector is tied to availability of land. Acquisition of land is cumbersome and time-consuming. The processes for land titles and ownership documentations are always a big challenge.
The acquisition of land in urban areas is obviously expensive.The acquisition of land in urban areas is obviously expensive.
CHALLENGES
Competitiveness is good for business in a free market economy, so people in the high class are taking advantage, risks and investing for protability and the sector is becoming more robust and competitive.
Because of the huge housing decit in the sector, there is considerable room for protable investment in the real estate business. If the current growth pattern is sustained;If the current growth pattern is sustained; 1. Numerous jobs would be created in the process; and 2. The housing decit would be abridged sooner than later. Looking at the class distribution of 55% of 170 million population and part of the 35% (ML), there is huge potentials in the sector.potentials in the sector.
OPPORTUNITIES
World Trade Centre A - Grade Office Tower andA Five Star Hotel The Wing Tower
Eko Atlantic City Project
Jabi Lake Mall Project
Churchgate Group Capital Mall
Oando & RMB Westpoint
Lagos State and Private Partnership Participation
Actis West Africa, Duval Properties joint venture Jabi Lake Development
N156Million
$180 Million
Multi to BillionDollars.
$120 Milion
Abuja Abuja Lagos
Lagos
Abuja
I 37 Storey structure with luxury apartments
This will include a Five Star Hotel A state of the art office complex. This is being nanced by Stanbic IBTC Ltdbeing nanced by Stanbic IBTC Ltd 10 square miles of land reclaimed from the Atlantic Ocean on the Lagos coast.This comprise high rise condominiums, schools, commercial properties, a centralized conference center, a U-shaped office tower and the "Great Wall of Lagos", a 7 km long and the "Great Wall of Lagos", a 7 km long wall of bricks to shield the city and Victoria Island from the waves of the Atlantic. This is sitting on 5 hectares of land as part of the 35 hectares of master-planned development. This will include, hotels, residential apartments and office spaces. and office spaces.
ONGOINGPROJECTS
PROJECTS DEVELOPERS VALUE LOCATION CLIENTS
To provide regulations, two things happened recently.
These were launching of:
1. Nigeria Mortgage Renance Company (NMRC)2. Lagos Home Ownership Mortgage Scheme (Lagos HOMS)
Reasons for these were to:
1. Provide cheaper long-term funds to mortgage lenders2. For mortgage at lower interest rates2. For mortgage at lower interest rates3. For longer tenors as in other developed markets
REGULATORYINTERVENTIONS
Nigerian Real Estate Investments and Exhibitions (NREIE)
Lekki Gardens / GTRich
Ashela Properties Ltd / Candle Light Estates
Eden Heights
Canalily
Churchgate Group UAC PropetiesUAC Propeties Eko Atlantic City Capitl Mall RMB West Point Jabi ake Development
Plot 5, Mazi Ukodike Ibeh Street,Off Ado Road,Ajah, Lagos
Lekki Gardens Phase 3,Chevron Drive, Lekki,Lagos, Nigeria Ibeju Lekki,Lagos 6 Femi Pearce,Victoria Island,Lagos NigeriaLagos Nigeria Alma Beach,adjacent to Lekki Phase 1,Lekki, Lagos, Nigeria Abuja and Lagod Lagos Lagos Lagos LagosLagos Abuja
www.edenheights.com.ng
09093019888
08170512118
08177401223 and'08136302115'08136302115
NREIE is affiliate to the following orga-nizations: Ciza Energy Limited Ciza Contracting & Construction Limited andCiza USA Inc Owners - GTRich
Developer / Architect: Design Union
REAL ESTATEINDUSTRY
OWNERS/DEVELOPERS CONTACT ADDRESS WEBSITE & EMAIL OTHER INFORMATIONPhone
LIST OF OWNERS / DEVELOPERS / MANAGERS
Clusters of Discussants for 30 minutes
The Federal Government (FG) must make policies supporting thereal estate industry for sustainability.
In conjunction with State and Local Governments, the FG must encourage investors and investments into the real estate business by soliciting for further Private Partnership Participation (PPP).
The three (3) tiers of government must ensure that prices of building materials are controlled and are reasonably reduced downwards materials are controlled and are reasonably reduced downwards to foster harmonization in prices nationwide.
RECOMMENDATIONS
Land and Titles should be made available to Investors by giving better incentives (beyond price money) to the Land Holders and/or Owners by State Governments.
The Governments should invest more in Mortgage Banks so that people can access long-term loans to acquire their dream homes.
The Governments should intervene in the interest regime. For people to access this loans, interest rates should be reduced to For people to access this loans, interest rates should be reduced to single digits for long-term nance-loans.
RECOMMENDATIONS
1. Property News (Industry News) dated 9 June 2015 2. Vanguard Newspapers dated 20 April 2015 3. National Bureau of Statistics Reports
SOURCES
