Since the development of The Palms in Lagos, Nigeria’s first modern mall in 2005, the retail segment of Nigeria’s real estate growth story has seen continued interest from multiple investors. Over the years, additional retail centers have emerged in established cities like Lagos and Abuja. In these locations, developers aim to provide residents with better access to formal retail similar to existing schemes in other established global cities.
The most recent trend however, has been the expansion into secondary cities. Malls in Kano, Enugu, Ibadan, Port Harcourt, Ilorin and Delta which opened over the last 5 years are demonstrating that investors are not only keen on primary cities. Few developers are searching for yield, where they have an opportunity to provide flagship retail centers in regions where little or no formal retail exists. According to a report by McKinsey Global Institute, Nigeria’s current retail consumption currently listed at $388 billion per year may rise to $1.4 trillion by 2030.
However, can this trend be sustained after a tough economic year on the back of lower oil prices, a weakened Naira and restrictive policies from the Central Bank which are placing a chokehold on Nigerian businesses?
This will be one of the questions answered during the West Africa GRI Conference from the 17th – 18th of February 2016, for which estate intel is a proud media sponsor. Kevin Teeroovengadum from AttAfrica, one of the companies that acquired Ikeja City Mall, Fuastin Moukala from CFAO Nigeria and Ghana, service providers from EMC Real Estate and many others. They’ll speak on these issues in detail on Day 1 of the event during the discussion named – “Retail & Logistics: Primary city saturation? Secondary cities viable?”
During this two-day event, there will be over 100 real estate investors, developers, service providers and more keen on finding partners and learning more about the investment environment within the West African property market.
Find out more about the event here.