Activities in the Nigerian real estate sector, as seen in the first quarter of this year, have validated analysts’ prediction at the beginning of the year of a positive outlook for the sector.
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The African Property Investment (API) Events had predicted that, given the macroeconomic indicators released by the International Monetary Fund (IMF) pointing to a 5 percent GDP growth across 18 economies in sub-Saharan Africa, investment opportunities would increase in Nigeria, particularly in the real estate sector.
The sector has seen some level of investments, especially through joint venture arrangements with state governments, and this cuts across major cities in Nigeria. Apart from this being a demonstration of confidence in the economy, the investors are also responding to the relative improvement in the macro-economic environment.
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In addition to the 3,500 housing units it is developing in Life Camp, Abuja, Brains and Hammer, an Abuja-based real estate development firm, recently sealed pact with Lagos State government to develop 750 housing units in the state’s upcoming Jubilee Estate in Iganmu.
This is a significant development in a state with over 3 million housing demand-supply gap, more so as the units come in various house-types that may be affordable to various segments of the society.
According to the authorities of the company, the 750 units will comprise 132-tower units and 618 units to be delivered in phases. The Phase 1 of the project comprises 129 units made up of 12 units of 2-bedrooms, 24 units of 4-bedrooms terrace and 93 other units. There are also twin towers made up of 132 units, comprising 60 units of 1A-bedroom, 24 units of two 1B-bedroom, and 24 units of 3-bedroom maisonette.
Land prices have gone up, which Damola Akindolire, executive director at Alpha Mead Development Company, estimates at 10 percent in the upcoming locations such Ibeju Lekki, Lagos, where investors are taking position to tap from the opportunities that will come with developments at the Free Trade Zone.
“We are considering doing a development there because that axis will soon explode”, affirmed Gbenga Olaniyan, CEO, Estate Links, insisting that increasing number of interests in doing developments reflects investors’ confidence in the economy and, more importantly, serves as a mark of willingness of government to address housing challenge.
In Ogun State, more than ever before, investors are showing interest in the New Makun City, prompting the Ogun State Investment Corporation’s (OPIC) efforts at creating a housing hub along the Lagos – Ibadan Expressway.
The new housing hub, according to officials of the corporation, is aimed at assisting the state government to create a mega city footprint by providing housing units in the new city housing project at the Shagamu interchange and the MTR Garden Estates at Isheri end of the expressway.
The partnership that will deliver about 3,000 housing units in the next few years under the Port Harcourt mega city initiative is part of the rising investor-interest that has seen the Rivers State government partnering with private real estate developers.
Expectation is that these developments will see more Nigerians, especially city dwellers, having access to homes, leading to improvement in the country’s gross domestic product.