2012 was a period of mixed experiences in the Nigerian real estate market. This was not one-sided as
the economy as a whole had a blend of ups and downs. In all, Nigeria had it better than a lot of developed
economies would testify. This report gives a concise account of the market in 2012 and attempts to
forecast how this as well as other factors will shape the performance of real estate as an asset class
in 2013.In 2012, the Naira was relatively stable all through the year, while fixed income and money market
instruments remained significantly attractive to local and international Investors. Nigerian bonds were
included in two international bond indexes. There were good improvements in capital market conditions
culminating in a rally in the third quarter of the year, However there were just with a few listings of stocks
on both primary and secondary bourse. In 2012, there were divergent experiences in property
demand across various locations. In Lagos for instance, some areas experienced capital appreciation,
some remained stagnant while some even depreciated. There were various reasons. Some areas
recorded appreciation due to infrastructure improvements, proximity to the CBDs (Lagos, Ikeja and Victoria
Island) and affordability. While other areas depreciated or remained stagnant in value due to security
issues, flooding and ocean-surge forecasts, depreciating / lack of infrastructure, high price amongst
other reasons.
