{"id":26415,"date":"2018-09-18T11:29:28","date_gmt":"2018-09-18T10:29:28","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=26415"},"modified":"2018-09-18T11:32:29","modified_gmt":"2018-09-18T10:32:29","slug":"experts-predict-sustainable-growth-in-real-estate-sector","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/experts-predict-sustainable-growth-in-real-estate-sector\/","title":{"rendered":"Experts Predict Sustainable Growth In Real Estate Sector"},"content":{"rendered":"

Dayo Emmanuel With Agency Reports<\/p>\n

The annual West African Property Investment (WAPI) Summit, the region\u2019s most prominent and largest real estate investment and development conference will be once again taking place in Lagos on November 15 and 16, 2018 at the Eko Hotel and Suites.<\/p>\n

According to the summit\u2019s host, API Events\u2019 Kfir Rusin, this year\u2019s theme: RE-Calibrating Supply and Demand for Sustainable Growth is a natural evolution of the previous year\u2019s theme, Changing the West African Narrative, which aided more than 400 delegates representing over 200 companies to reposition the sector in a region sparked to a growth footing by Nigeria\u2019s exit from recession.<\/p>\n

As Rusin expands, \u201cThe 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 \u2013 we\u2019re pleased to announce that we\u2019ve secured more than 60 well-known regional and international thought leaders to speak at #WAPI2018. These include, Broll Nigeria\u2019s CEO, Bolaji Edu, regional legal authority, Olasupo Shasore (SAN), Ali Djire, Fraym\u2019s Country Manager and PwC Nigeria\u2019s Chief Economist Andrew S Nevin.\u201d<\/p>\n

As the head of one of the region\u2019s largest multi-disciplinary commercial property services providers, Broll\u2019s Bolaji\u2019s Edu, position provides him with a unique position to gauge how the market has re-calibrated post-recession.<\/p>\n

As Bolaji says, \u201cIf 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.\u201d<\/p>\n

And while Bolaji argues that the drop-off proved challenging it did enable the market to strike a balance, especially at the height of investment \u2013 with property values reaching sky high levels. This boom, he says can be attributed to the post 2007 global recession economy whereby investors fuelled by low interest rates entered emerging markets aggressively searching for high yields.<\/p>\n

As Bolaji explains, \u201cWe don\u2019t expect to see the same level from the institutional international investment community, which lead to emerging market currencies being too strong and artificially inflated the size of the economies and the size of the middle class in USD terms.\u201d<\/p>\n

A More Sustainable Market<\/p>\n

Following this inflation and subsequent re-adjustment, Bolaji believes that the market is now on a more long-term stable footing. Commenting that: \u201cThe 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 out skirts of London.\u201d For him, this is most evident in the reducing rates in the commercial and retail sectors, which are now at \u201cmore sustainable levels,\u201d he says.\u00a0<\/p>

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One of the most striking results of this re-calibration are the new strategies employed by developers to cater to demand and not \u201ccopy & paste\u201d and a change in the demographic of international retailers drawn to the market\u2019s demanding and aspirant middleclass.<\/p>\n

\u201cDevelopers and investors in the market are examining building size and design that better reflect the target market.\u00a0 It is important to entertain best practices and the latest trends from around the world, but we need to tailor our projects,\u201d says Bolaji.\u00a0<\/p>\n

Adding that the region\u2019s market size and growing demand from the middleclass means that retailers and companies still wish to establish a presence in Nigeria. \u201cHowever, they are looking at this more strategically taking into consideration both the potential risks in addition to the incredible upside opportunities.\u00a0 International investors and retailers are seeking more partnership opportunities.\u201d<\/p>\n

Market Trends<\/p>\n

As the market continues to evolve, Broll has deduced several key trends emerging within the local retail space says Bolaji. \u201cWe see local retailers driving demand for retail space especially in secondary locations, while international retailer demand is predominantly driven by retailers from Europe and the Americas, whereas historically, Asian brands were the most aggressive.\u201d Adding that the biggest demand driver in existing malls is food and beverage.<\/p>\n

As the market continues to evolve and re-calibrate in line with economic development \u2013 Bolaji has noted the demand continues to be driven by the high end and budget segments.\u00a0 \u201cThese are the two areas that we see most enquiries from both investors \/ developers and retailers and corporates.\u201d<\/p>\n

Rising Oil Prices<\/p>\n

While the rising oil price continues to be of benefit to overall regional GDP growth, Bolaji believes that one market seeing un uptick from oil\u2019s surge is the office sector with occupier demand being driven by the oil and gas sector. While this may not reach the highs of previous eras, especially as many of the new firms are local oil servicing firms. The trend he believes is driven by the fact these local companies can enjoy shorter timelines when closing transactions compared to their international counterparts.<\/p>\n

Rusin concludes sharing Bolaji\u2019s views, \u201cWe\u2019ve witnessed continued development across Africa and Nigeria, and as an African bellwether economy \u2013 what happens in Nigeria sends ripples across the continent from an investment and trend perspective. I believe Bolaji\u2019s presentation and together with other leading panellists will aid us in achieving our key objectives of: identifying the critical shifts in consumer, occupier and retailer demand, and how these changes will shape the future of the industry.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Dayo Emmanuel With Agency Reports The annual West African Property Investment (WAPI) Summit, the region\u2019s most prominent and largest real estate investment and development conference will be once again taking place in Lagos on November 15 and 16, 2018 at the Eko Hotel and Suites. According to the summit\u2019s host, API Events\u2019 Kfir Rusin, this …<\/p>\n","protected":false},"author":9,"featured_media":26416,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,17],"tags":[4511,4505,4508,4507,4506,4510,3272,4509],"coauthors":[2387],"class_list":["post-26415","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","category-news","tag-ali-djire","tag-api-events","tag-bolaji-edu","tag-broll","tag-kfir-rusin","tag-olasupo-shasore","tag-wapi","tag-wapi2018"],"yoast_head":"\nExperts Predict Sustainable Growth In Real Estate Sector - National Wire<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/experts-predict-sustainable-growth-in-real-estate-sector\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Experts Predict Sustainable Growth In Real Estate Sector - National Wire\" \/>\n<meta property=\"og:description\" content=\"Dayo Emmanuel With Agency Reports The annual West African Property Investment (WAPI) Summit, the region\u2019s most prominent and largest real estate investment and development conference will be once again taking place in Lagos on November 15 and 16, 2018 at the Eko Hotel and Suites. 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