Tight regulatory conditions and restrictive monetary policies slowed activity in the retail market.
- Inflationary pressure persisted in the economy following the trend from the previous quarter.
- 11,000m2 of mall space was added to the Lagos retail market with the completion of Festival Mall.
- Opening of around 30,000m2 of mall space was postponed from Q4 2015 to Q1 2016 primarily due to
the restrictive policies from Central Bank of Nigeria (CBN).
- Retailers adopted new strategies to deal with the restrictive CBN policies by focusing operations in core
markets in better performing malls.
- There were no fluctuations in rental levels across board, with prime markets sustaining average rents
of $65/m2
/month whilst rents in 2nd tier markets continued to range between $32 - $45/m2
/month
-Some investors with existing presence and local knowledge have remained committed to rolling out
new retail projects. Over 180,000m2 of retail is expected to be delivered to the market over the next 24
months.
