Our Market- Real Estate
The market in which we have grown and has great potential for further growth regardless of economic indices and global events like COVID-19. This means that there is demand for apartments.
Overview of the Real Estate Market
The Nigerian real estate industry has grown significantly since the country’s return to democratic rule in 1999 with significant inflows from domestic and foreign investors. In particular, inflows from South Africa, Middle East & Asia and the United States of America and increased investment by local Institutional players have played a crucial role in the development of the Nigerian real estate industry over the last two decades.
Market segmentation is divided into the Residential, Commercial, Industrial and Hospitality. The residential segment is based on administrative divisions used by the state government for planning and development. The commercial segment is supported by the rising infrastructural development in Lagos. The industrial market segment mainly consists of warehouses, factories and self-storage.
We believe that the supply of residential properties in prime areas on the Island and some key locations on the Mainland will remain higher than the demand due to the proliferation of investors in this segment. However, we expect a higher demand than supply in the mid-market for residential properties along the Lekki Expressway and Ajah, driven by the development of industries and infrastructural facilities in the Lekki Free Trade Zone. The demand will be higher in some location on the Mainland. We also believe that the office space segment will continue to dominate the commercial segment of the industry in the near term to medium term.
The market drivers in the real estate industry are as follows:
- Rising Population.
- Immigration & Urbanization.
- Gentrification & Land Reclamation.
- Economic Growth.
- Income Level.
- Expected Return on Investments.