{"id":7743,"date":"2018-01-09T02:20:03","date_gmt":"2018-01-09T02:20:03","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/outlook-for-real-estate-in-2018-as-sector-set-for-boom-once-again\/"},"modified":"2018-01-09T02:20:03","modified_gmt":"2018-01-09T02:20:03","slug":"outlook-for-real-estate-in-2018-as-sector-set-for-boom-once-again","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/outlook-for-real-estate-in-2018-as-sector-set-for-boom-once-again\/","title":{"rendered":"Outlook for real estate in 2018 as sector set for boom once again"},"content":{"rendered":"<p>\n<\/p>\n<div itemprop=\"description\" readability=\"114\">\n<p>By Kingsley Adegboye<\/p>\n<p>As Nigeria is saying goodbye to recession, the currency uncertainty, falling production and double digit inflation that saw the country fall into negative growth and weighed heavily on investor confidence, are giving way to a brighter picture.<\/p>\n<p><!-- between content ad --><\/p>\n<p>Subsequently, as the economy improves, the picture for <a href=\"https:\/\/amazingproperty.com.ng\/blog\/property-center-nigeria\/\">real estate<\/a>, both for occupational and capital markets, are expected to start improving through 2018.<\/p>\n<figure id=\"attachment_921887\" style=\"width: 412px\" class=\"wp-caption alignnone\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15.jpg?resize=412%2C219&#038;ssl=1\" data-lazy-src=\"https:\/\/i0.wp.com\/cdn.vanguardngr.com\/wp-content\/plugins\/lazy-load\/images\/1x1.trans.gif?ssl=1\" class=\"size-full wp-image-921887\" alt=\"\" width=\"412\" height=\"219\" srcset=\"https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15.jpg 412w, https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15-300x159.jpg 300w, https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15-58x31.jpg 58w, https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15-260x138.jpg 260w, https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15-200x106.jpg 200w\" sizes=\"auto, (max-width: 412px) 100vw, 412px\"\/><noscript><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-921887\" src=\"https:\/\/i0.wp.com\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15.jpg?resize=412%2C219&#038;ssl=1\" alt=\"\" width=\"412\" height=\"219\" srcset=\"https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15.jpg 412w, https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15-300x159.jpg 300w, https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15-58x31.jpg 58w, https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15-260x138.jpg 260w, https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2018\/01\/Housing15-200x106.jpg 200w\" sizes=\"auto, (max-width: 412px) 100vw, 412px\"\/><\/noscript><figcaption class=\"wp-caption-text\"><a href=\"https:\/\/amazingproperty.com.ng\/blog\/sell-your-home-online-fast\/\">Housing<\/a> estate in Lagos<\/figcaption><\/figure>\n<p>However, there will be the usual lag between economic recovery and market recovery but real estate, which has suffered from a sharp supply- demand imbalance, widening vacancy rates and falling rents, looks close to bottoming out.<\/p>\n<p>According to Nigerian Real Estate in 2018 by JLL, \u201cIn our view, 2018 will be a year of consolidation and recovery. This improving sentiment, will be underpinned by more quantifiable progress in a number of areas: First and importantly for real estate investors, the market is starting to gain more confidence in the economy backed by an improving external environment. Secondly, government policy- making is gaining some credibility through coherent plans to support diversification and fiscal consolidation with the backing of external bodies.<\/p>\n<p>Thirdly, we are starting to see evidence that the decline in rental rates in Lagos is reaching the bottom of the cycle. Fourthly, the legislative framework is in place for real estate <a href=\"https:\/\/amazingproperty.com.ng\/blog\/tips-for-house-price-negotiation\/\">pricing<\/a> to mitigate the impact of a volatile economy and fifthly, for an economy and population of the size of Nigeria, we still think there is a structural under supply of investment grade real estate stock. This is changing, which will provide increasing opportunities for both local and international investors.<\/p>\n<p>The impact on real estate markets<\/p>\n<p>What does this more benign outlook mean for real estate? Granted, growth is likely to be pretty modest in the short term, as the country exits recession. But at least with inflation easing as pressure on the naira dissipates, disposable income growth should have a chance to recover giving some fillip to consumer demand; a welcome break for real estate landlords.<\/p>\n<p>Office rentals which have seen a 20-40 per cent reduction over the past two years are bottoming out. In retail, the slowdown in demand which has impacted footfall and pushed vacancy rates up should stabilise.<\/p>\n<p>Most importantly for tenants and owners, the foreign exchange market is starting to function again. As the central bank reiterates its support for the Nafex currency window, currency markets can begin to function with some degree of normality which should prove supportive for tenants struggling to balance the spread between a myriad of competing rates.<\/p>\n<p>Of course, it will take time for confidence to return fully to real estate markets. As in all emerging economies, there is a lag between economic recovery and the recovery in real estate market and Nigeria faces its own distinct set of challenges, particularly regarding the country\u2019s leadership and an election cycle kicking in through 2018.<\/p>\n<p>Foreign investors remain wary given the supply that is already in the market and the pipeline that is coming in the short term. Rental expectations as well as pricing need to adjust to the new reality.<\/p>\n<p>However, Nigeria remains a core investment destination for anyone looking at Sub-Saharan African markets. In an environment where it is increasingly hard to find returns, any evidence that the country is making serious progress in implementing structural reforms and breaking the historical reliance that the country has on oil exports, will be welcomed by investors.<\/p>\n<\/p><\/div>\n<p><a hre=\"https:\/\/www.vanguardngr.com\/2018\/01\/outlook-real-estate-2018-sector-set-boom\/\"> Vanguard <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Kingsley Adegboye As Nigeria is saying goodbye to recession, the currency uncertainty, falling production and &hellip; <a title=\"Outlook for real estate in 2018 as sector set for boom once again\" class=\"hm-read-more\" href=\"https:\/\/amazingproperty.com.ng\/blog\/outlook-for-real-estate-in-2018-as-sector-set-for-boom-once-again\/\"><span class=\"screen-reader-text\">Outlook for real estate in 2018 as sector set for boom once again<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":7744,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[519,684,522,15272,1007,818,84,2878,678,907,3053],"class_list":["post-7743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-africa","tag-lagos","tag-nigeria","tag-outlook","tag-owners","tag-real","tag-real-estate","tag-real-estate-market","tag-rental","tag-tenant","tag-tenants"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/Housing15.jpg?fit=412%2C219&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4920,"url":"https:\/\/amazingproperty.com.ng\/blog\/nigerias-commercial-real-estate-market-outlook-still-gloomy\/","url_meta":{"origin":7743,"position":0},"title":"Nigeria\u2019s commercial real estate market outlook still gloomy","author":"Amazing Property","date":"June 12, 2017","format":false,"excerpt":"An illustration of a proposed commercial development. PHOTO: UBOSI ELEH AND COMPANY Uncertainties in the real estate industry have continued to dampen commercial property market, on the back of a turbulent Nigerian economy. And this monetary and fiscal polices largely driven by the country\u2019s macroeconomic fundamentals, stoked inflation, slowed economic\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Ubosi-12-06-2017.jpg?fit=1200%2C676&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Ubosi-12-06-2017.jpg?fit=1200%2C676&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Ubosi-12-06-2017.jpg?fit=1200%2C676&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Ubosi-12-06-2017.jpg?fit=1200%2C676&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Ubosi-12-06-2017.jpg?fit=1200%2C676&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":2217,"url":"https:\/\/amazingproperty.com.ng\/blog\/nigerias-real-estate-sector-to-record-5-39-per-cent-growth\/","url_meta":{"origin":7743,"position":1},"title":"Nigeria\u2019s real estate sector to record 5.39 per cent growth","author":"Amazing Property","date":"March 20, 2017","format":false,"excerpt":"Notwithstanding the negative growth recorded in 2016, the real estate sector is expected to grow at an average rate of 5.39 per cent between 2017-2020. 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Real Estate\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Global Real Estate Transparency Index.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/10\/Global-Real-Estate-Transparency-Index.jpg?fit=1200%2C674&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/10\/Global-Real-Estate-Transparency-Index.jpg?fit=1200%2C674&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/10\/Global-Real-Estate-Transparency-Index.jpg?fit=1200%2C674&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/10\/Global-Real-Estate-Transparency-Index.jpg?fit=1200%2C674&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/10\/Global-Real-Estate-Transparency-Index.jpg?fit=1200%2C674&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":7958,"url":"https:\/\/amazingproperty.com.ng\/blog\/experts-forecast-real-estate-sub-sector-as-investor-hub-in-2018\/","url_meta":{"origin":7743,"position":5},"title":"Experts forecast real estate sub-sector as investor hub in 2018","author":"Amazing Property","date":"January 30, 2018","format":false,"excerpt":"By\u00a0Kingsley Adegboye Experts in real estate sub-sector of the nation\u2019s economy have identified the sub-sector as one of the potential revenue drivers for the Nigerian economy in 2018. 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