Nigeria ‘to emerge as international investor property hotspot’
Nigeria is set to emerge as a property hotspot for international investors in 2016, says leading global agency, Knight Frank.
Thanks to a robust economy and a range of investment options, Nigeria is gradually attracting international investment interest, according to Knight Frank’s newly-published Africa Hotspots Research Bulletin 2.
Nigeria’s growth, led by Lagos and Abuja, is driven by strong population trends, a diversifying economy and an evolving urban environment.
MENA Researcher Diaa Noufal, says, “The Lagos residential market is showing signs of increased activity, even at the top end of the luxury market, which is characterised by apartments in Ikoyi priced in excess of US$1 million.
“Concurrently, the mid-market is also performing positively, with well-priced and well-located estates selling quickly off-plan.
“Nigeria, South Africa, Kenya and Uganda, are the top destination for GCC investments in Africa’s Sub-Saharan countries thanks to healthy economic performance and strong investment opportunities.”
Nigeria’s agriculture, industrial, communication and financial services sectors play a prominent role in attracting Gulf investment interest. Nigeria has also been targeted by investors from other Gulf countries, especially Saudi Arabia over the last few years.
“A large segment of investors are looking to invest in the residential market with a strong population growth and a steady rise in income levels. The scarcity of land and the severe lack of luxury properties have been the impetus for developing major projects such as Eko Atlantic, which is expected to attract more international investment.”
Peter Welborn, Head of Africa at Knight Frank, believes the market has plenty of room for growth “Foreign investment in the Nigerian property sector is still modest considering the size of opportunities.
“International investors are more and more positively weighing the improving investment scene in the country.
“Investing in the Nigerian property sector provides comparatively high yields, coupled with increasing capital values across all property asset classes, whether offices, industrial, residential or retail.”
Nigeria has the biggest economy in Africa with Gross Domestic Product of US$594.3million and Africa’s economy is estimated to grow 7% over the next four years.
It also has the biggest population in Africa, with Lagos and Abuja among eight cities with populations over one million. In fact, by most estimates, Lagos has already overtaken Cairo as Africa’s biggest city and its population may be close to 40million by 2050.
Prime office rents in Lagos are among the highest in Africa, with only a handful of buildings able to provide high quality space.
Land reclamation is underway for the vast Eko Atlantic project, which will create a new city district off Victoria Island, Lagos. Construction has begun, with the first residential tower expected to be completed in 2016. Eventually, it is envisaged that Eko Atlantic will be home to around 400,000 residents.
Abuja is a modern planned capital city which is seeing increased development activity, including the huge WTC Abuja scheme, which includes prime Tower One Residences.
