by uncertainty around the 2015 elections, while
private sector developers and investors might delay
development and investment plans.
For the commercial and industrial property sector,
Lagos State is the centre of activity.
Offices
Demand for A-grade office space continued apace in
2013, with Victoria Island seeing several leases signed
at an average rental rates in excess of US$800/m2 a
year. Prime-grade properties have recently achieved
rental rates of US$1,000/m2 a year. Grade-A
properties of between 300m2-500m2 are most in
demand, especially in Ikoyi and Victoria Island, which
remains a preferred location for companies.Supply
has responded to demand for higher standards and
there is an increase in the amount of A-Grade space
being brought on-stream. Based on the current
development pipeline, more than 200,000m2 of both
prime and A-grade properties is expected to come
to market in the next 24 months in Victoria Island
and Ikoyi.
Retail
The retail market in Nigeria continues to expand
on the back of steady demand. The most attractive
locations for development in the retail sector
often fall in Lagos and Abuja due to access and
infrastructure. Other cities like Port Harcourt,
are also providing opportunities due to population
growth trends and household demographics.In
2013, construction started on several new retail
sites. Line shops of between 50m²-150m² are in
demand, with expectations that demand for larger
premises could rise significantly in the future as
new international retailers enter the market. Net
rentals for premises under 150m², depending on
the location and quality of the mall, range from
US$55/m²-US$90/m². Retail ma lls in Lagos
and Abuja demand higher rentals than in other
cities achieving an average net through-rental of
www.reimag.co.za
U S $55/m ²-U S $ 6 5/m ² f o r s p a c e s b e t w e e n
50m2-700m2 excluding anchors.
Leisure
As part of the broader retail sector, leisure and
entertainment has enjoyed its fair share of growth. A
number of new hotels opened in Lagos and expectations
are that the leisure sector will continue to grow in 2014.
Industrial
Still largely underdeveloped, the demand for industrial
space – driven by economic growth and business
expansion - continues to outstrip supply, especially when
it comes to clean, light industrial premises for the logistics
and manufacturing sectors.The launch of the National
Enterprise Development programme by the government
is poised to boost the industrial sector. This will increase
demand for industrial real estate in the country.
Residential
Residential propert y continues to experience
tremendous g row th, w ith a number of new
developments completed last year in Lagos State.
Focus areas for developers for middle income housing
are the Lekki- Epe Axis and the Lagos Mainland
commercial centres of Yaba, Ikeja and Surulere.
Luxury serviced apartments are in demand in
Victoria Island and Ikoyi. There is a steady increase
in supply of two-to-three-bedroom apartments, and
up to five-bedroom detached houses for purchase,
and housing estates in particular are popular.
An opportunity which could attract a lot of activity
and supply to the real estate sector (mainly residential
for the low-mid income population) is the recently
inaugurated Nigerian Mortgage Refinance Company
which, when operational, would inject new funds to
the housing sector at affordable interest rates.
RESOURCES
Broll
CBRE Affiliate Network
Offshore Handbook 2014
33