MCORE Lagos Real Estate Investment Q1:2014
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Summary
The Central Bank of Nigeria’s ongoing monetary tightening policy coupled with a flight of international capital out of Nigeria, means that there is less money in the economy. This equates to rising interest rates from the few banks willing to lend out scarce capital that is in high demand. There is also a reduction in foreign direct investment as the economies of the west continue to improve and start once again offer improved risk adjusted returns. Reductions in FDI also mean that there are fewer international corporates seeking new office space to expand their investment frontiers. However, the long term picture for the Nigerian economy remains very attractive. International corporates with a long term perspective are investing in the country, there is a rising consumer class leading to a need for modern retail space, commercial office space and residential housing. The market is very much driven by a growing local economy as opposed to one driven by international requirements.
Source: MCORE
Published: 2014
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