MCORE Real Estate Investment Report (All Sectors) Q2:2012
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Summary
Provisional data from the National Bureau of Statistics (NBS) indicates that real Gross Domestic Product (GDP) grew by 8.68 per cent in the fourth quarter of 2011 up from 6.64, 7.72, and 7.40 per cent in the 1st, 2nd and 3rd quarters, respectively. The overall GDP growth rate in 2011 was estimated by the NBS at 7.69 per cent, marginally lower than the 7.87 per cent recorded in 2010.We are beginning to see the green shoots of recovery across the Nigerian real estate sector. This is evident in the number of hospitality & leisure, residential, retail and commercial office transactions either in the early stages of development or in the planning pipeline.For high-end properties, a dearth of international tenants continues to place a damper on the expatriate housing communities of Ikoyi, Banana Island and Victoria Island.On the positive side, the recent historical fall in real estate prices by up to 50% in extreme cases as a fallout of the global economic downturn has led to attractive opportunities to invest in what we consider to be a new baseline for future growth in real estate asset values.
