Real Estate & Construction
From The Report: Nigeria 2013
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Rapid population growth, steadily increasing urbanisation and rising incomes – particularly among the middle class – have fuelled expansion in Nigeria’s real estate sector over the past decade, and are expected to continue to drive growth in the industry. While most segments have seen increased investment in recent years, the country remains undersupplied in virtually every area, particularly affordable housing, high-quality retail space and grade-A office space. Activity in Nigeria’s construction industry is expected to continue to rise for the foreseeable future, despite softening demand in a handful of segments due to exogenous factors. The supply and demand differential in the power generation and housing segments alone is expected to result in trillions of naira worth of federal- and state-led investments through 2020. At the same time, the industry faces a number of challenges, notably construction costs and security issues.

This chapter contains an interview with Nick Lambert, Head of Complex and Emerging Markets, CBRE.

Articles from this Chapter

Overview

Rising reputation: The property market is considered a prime investment destination
OBG
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Rapid population growth, steadily increasing urbanisation and rising incomes – particularly among the middle class – have fuelled steady expansion in Nigeria’s real estate sector over the past decade, and are expected to continue to drive growth in the industry for the foreseeable future. While most segments have seen rising levels of investment in recent years, the country remains undersupplied in virtually every area, particularly affordable housing, high-quality retail space and grade-A…

Analysis

Calling all consumers: Retail space seems primed for growth
OBG
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Driven by rising incomes and steadily increasing consumer sophistication, Nigeria’s retail real estate market is poised for considerable expansion over the course of the coming decade. While the country’s formal retail sector is still in its infancy, the potential for future growth is clear, given the large size of its 170m-strong consumer market along with the steady expansion in headline indicators and the rising level of domestic consumption. A number of new international-standard retail…

Interview

OBG talks to Nick Lambert, Head of Complex and Emerging Markets, CBRE
OBG
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Interview:Nick Lambert What main trends have you observed in real estate investment and property prices? NICK LAMBERT: Despite a lack of transparency and comparable data in the market, it is estimated that yields for commercial property are around 6-8%; residential property, 5-6%; and retail, 5-6.5%. Demand far outstrips supply across all sectors, particularly for quality space, which is keeping prices relatively high. That will certainly continue over the foreseeable future. “Grade A”…

Overview

Building up: The sector expands as a result of new government-led projects
OBG
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Despite softening demand in a handful of segments due to exogenous factors, activity in Nigeria’s construction industry is expected to continue to grow for the foreseeable future. Major demand drivers include rapid population growth, high levels of government investment in infrastructure and steadily increasing urbanisation, among others. In the first quarter of 2013 the building and construction sector accounted for 3.27% of GDP at 1990 base prices, up slightly from 3.01% in the same period…

Analysis

Building blocks: Investing in materials production to meet growing local demand
OBG
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The construction materials segment in Nigeria has expanded dramatically in recent years, primarily as a result of local manufacturers ramping up production in an effort to supply rising construction demand. Large investments have flowed into the cement, steel, aluminium, paint and equipment industries, among other segments. Despite steadily increasing supply, prices for most materials remain high, due to the cost of inputs and power supply issues. Indeed, many local materials producers rely primarily…