Property experts have predicted that the nation’s real estate sector will achieve sustainable growth. The experts stated this ahead of the annual West African Property Investment Summit slated to hold in Lagos in November, with the theme, ‘Recalibrating Supply and Demand for Sustainable Growth’, according to a statement.
The summit’s host, API Events’ Kfir Rusin, said, “The market has undergone a shift, which is most evident in the changing retail and office occupier market. To help our 500 delegates unpack these changes, we’re pleased to announce that we’ve secured more than 60 well-known regional and international thought leaders to speak at the #WAPI2018.
“We’ve witnessed continued development across Africa and Nigeria, and as an African bellwether economy, what happens in Nigeria sends ripples across the continent from an investment and trend perspective.”
The Chief Executive Officer, Broll Nigeria, Bolaji Edu, who is expected to speak at the event, is said to be well positioned to gauge how the market has recalibrated post-recession
He was quoted as saying, “If we analyse the grade-A office market in Lagos and the overall retail mall market following the economy entering a deep recession in 2016; take-up dropped by approximately 40 per cent (offices) and 55 per cent (retail) between 2016 and 2017. However, as the economic recovery strengthens, we have seen numbers flatten out, and we expect to see an increase over the whole of 2018 from the low point of 2017.
“The market has begun to rebase itself down from a level where rent levels and capital values in parts of Lagos were comparable to the wealthiest cities in the world such as New York and the outskirts of London.”
According to him, this is most evident in the reducing rates in the commercial and retail sectors, which are now at more sustainable levels.
“Developers and investors in the market are examining building size and design that better reflect the target market. It is important to entertain best practices and the latest trends from around the world, but we need to tailor our projects,” Edu said.
He added that the region’s market size and growing demand from the middle class meant that retailers and companies still wished to establish a presence in Nigeria.
“However, they are looking at this more strategically taking into consideration both the potential risks in addition to the incredible upside opportunities. International investors and retailers are seeking more partnership opportunities,” Edu noted.