The yearning for studio and single-bedroom apartments within the highbrow areas of Lagos is facing an undersupply caused by real estate developers’ over-concentration on large-size luxury apartments, meaning that there are opportunities for investors in the development of such house-types.
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Real Estate Investment Trusts (REITs) ought to provide investors with opportunity to diversify their portfolio in funds of various property types, thereby reducing investment risks and volatility, but unfortunately in Nigeria, investors shy away from this promising but underperforming asset class.
The African Development Bank (AfDB) says it has debarred a Nigerian construction company, known as Qualitrends Global Solutions Nigeria Limited’, for 36 months. The bank made this known in a statement by its Communication and External Relations Department on Monday.
Efforts at reducing the housing deficits in Lagos received a boost last week, as Lagos chapter of Nigerian Institute of Architect (NIA) jump-started an initiative that would provide 300 units of affordable homes in the state. The project to be located at Epe, Iyana-Ipaja or Ikorodu is in partnership with Sterling Alternate. It targets the low-income and middle-income earners as well as tends to build an utopian community for residents.
The housing sector worldwide, is believed to be the bedrock of the economy of most developed nations, an important tool for stimulating growth.In the advanced countries, the sector contributes between 30 and 70 per cent of their Gross Domestic Product (GDP). Investment in housing accounts for 15 per cent to 35 per cent of aggregate investment worldwide and the sector employs approximately 10 per cent of labour force worldwide.
With the housing sector still challenged by affordability issues, adoption of container technology is increasingly taking shape for residential and commercial segments of the real estate market. The innovation is fast being deployed to create Nigeria’s tailored made solution to the housing problem based on its unique potential of quick to build, portability, environmental friendly, affordability and most importantly ease to maintain.
While recent times have seen the Kenya cement industry expand and new players arrive, the sector now faces a conundrum. While economic and construction forecasts indicate sound cement demand going forward, cement overcapacity has led to price pressures that show no sign of abating and which are affecting the bottom line of market players. A wave of industry consolidation in the short- to medium term cannot be ruled out. By Lisa Kimathi, Standard Investment Bank, Kenya.
For investors on the look out for a stable and secure environment for investment, Trinity Towers is their next destination. This is a development where there is unity of three towers that have been combined into structural beauty and functionality to offer the best of environments for business and leisure.
Experts in the real estate have expressed worry that the sector which recorded growth of about 2-3 per cent towards the end of 2018 has receded due to uncertainty in the country. The Nigerian Bureau of Statistics (NBS), in its Q1 2019 report, revealed that the GDP growth for the real estate sector was 0.93 per cent.
Delta Property Fund’s distributable earnings in the year to end-February 2019 declined to 73.84 cents a share from 97.24 cents in the previous year. The company said that they will retain a quarter of its distributable earnings “to facilitate capital expenditure and working capital requirements in the business”, therefore having a full-year distribution of 55.39 cents per share. Sandile Nomvete, CEO of Delta Property Fund joins CNBC Africa for more.