With global and regional capital continuing to flow into West African Real Estate, investors are starting to diversify their funds across the region and move away from the previous Nigeria and Ghana bias.
Following from the first market correction seen in 20 years, crippling Central Bank debt and the pegging of the Naira, the reaction to Nigeria’s (in President Buhari’s words) ‘suddenly poor’ status has been fight or flight. Some, like Novare, Old Mutual, Johnson Johnson and Pick ‘n Pay sticking to their guns and continuing to make gains, while others, like Sun International, Tiger Brands and Truworths, choosing to take their business elsewhere.
“The Nigerian real estate investment market is experiencing a unique combination of the first economic recession in 25 years, a rapidly devaluing currency and a retail and commercial development boom. This has led to an oversupply of prime real estate at a time when tenant demand has fallen to its lowest levels in over a decade, Broll has been at the forefront in advising, leasing and marketing for a large proportion of international investors and developers. We are actively working with our clients to come up with innovative property leasing solutions by providing tenant concessions while ensuring the long-term financial viability of the asset,” says Broll Nigeria CEO, Bolaji Edu.
“While the present crisis may seem insurmountable, Nigeria’s experience is no more than the growing pains of developing economy as experienced