{"id":8872,"date":"2018-07-30T04:20:59","date_gmt":"2018-07-30T04:20:59","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/marginal-rent-recovery-fuels-optimism-in-property-market\/"},"modified":"2018-07-30T04:20:59","modified_gmt":"2018-07-30T04:20:59","slug":"marginal-rent-recovery-fuels-optimism-in-property-market","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/marginal-rent-recovery-fuels-optimism-in-property-market\/","title":{"rendered":"Marginal rent recovery fuels optimism in property market"},"content":{"rendered":"<p><\/p>\n<div id=\"\">\n<div id=\"attachment_104301\" class=\"wp-caption alignleft\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1.jpg?resize=1280%2C720&#038;ssl=1\" data-lazy-src=\"https:\/\/i0.wp.com\/guardian.ng\/wp-content\/plugins\/ventra-lazy-load\/images\/1x1.trans.gif?ssl=1\" data-lazy-srcset=\"https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1.jpg 1280w,https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1-640x360.jpg 640w,https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1-1062x598.jpg 1062w,https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1-320x180.jpg 320w,https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1-531x299.jpg 531w,https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1-600x338.jpg 600w\" alt=\"\" width=\"1280\" height=\"720\" class=\"size-full wp-image-104301 lazyload\" sizes=\"auto, (max-width: 1280px) 100vw, 1280px\"\/><noscript><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1.jpg?resize=1280%2C720&#038;ssl=1\" alt=\"\" width=\"1280\" height=\"720\" class=\"size-full wp-image-104301 lazyload\" srcset=\"https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1.jpg 1280w,https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1-640x360.jpg 640w,https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1-1062x598.jpg 1062w,https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1-320x180.jpg 320w,https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1-531x299.jpg 531w,https:\/\/guardian.ng\/wp-content\/uploads\/2016\/03\/Real-Estate1-600x338.jpg 600w\" sizes=\"auto, (max-width: 1280px) 100vw, 1280px\"\/><\/noscript><\/p>\n<p class=\"wp-caption-text\"><a href=\"https:\/\/amazingproperty.com.ng\/blog\/property-center-nigeria\/\">Real estate<\/a><\/p>\n<\/div>\n<p>Unprecedented  correction in the property market is making landlords who originally seek out corporate tenants, for their properties, to prefer individuals (single) tenants, who can afford the rents, according to newly released Ubosi and Eleh Company\u2019s Nigeria Real Estate Report 2018.<\/p>\n<p>This trend is expected to continue the second half of the year. However, the overall outlook is mildly optimistic, as rents are unlikely to drop any further.But rents will remain fairly stable with the exception of strategically located properties in prime locations, particularly the ground and first floors, which will continue to attract a premium as financial institutions, service providers, telecommunication companies and myriad of retail concerns and fast foods.<\/p>\n<p>The 85-page report predicts an increase in demand that will continue to grow stronger as the year progresses. This outlook is predicated on economic growth as the country moves out of a recession, the higher oil prices, complementary growth in businesses as a result of same, and the continuous pressure on the limited stock of <a href=\"https:\/\/amazingproperty.com.ng\/blog\/sell-your-home-online-fast\/\">housing<\/a>.\u201cIf the economy continues on the upward trend as the country exits from recession, there is a possibility of a very slight but not significant positive move for rents.\tThis is predicated on the run up to the 2019 elections, as campaigns intensify, and more money is released into the system.\u201d<\/p>\n<p>The report says, the issue of conversion of residential properties to commercial uses in prime locations will continue. This is because a lot of businesses who cannot afford to pay the rent of the A and B Class developments will gladly pay a small premium over market rate to locate in a prime but accessible and popular secondary location.<\/p>\n<p>There will also be the case of these properties offering smaller spaces even at a premium to start ups or existing businesses. Some of these locations include properties off the major roads in Lekki, GRA Ikeja, Surulere, off Adeniran Ogunsanya Road, Ogudu Road all within the Lagos environs.On warehouses and logistics, the report noted that many operators are still very cautious committing fully to their maximum production capacity because of mixed signals and policies from the Federal Government in terms of direction and support. <\/p>\n<p>2018 will however witness a slight increase (less than 8per cent) in demand for warehousing. Rents are likely to remain at current levels and as witnessed in 2017 involving commercial real estate, many renewals may be undertaken at even reduced rents, as Landlords struggle to retain tenants and tenants struggle to remain in business and find a balance between their current space occupation and actual needs.<\/p>\n<p>One of the partners of the company, Mr. Chudi Ubosi said; \u201cWe project that if there is a noticeable uprise in the level of economic activities, then the latter half of the year will witness greater uptake of warehouse space, but will still not <a href=\"https:\/\/amazingproperty.com.ng\/blog\/real-estate-lead-strategies-2\/\">lead<\/a> to a noticeable increase in rent.\u201cThe average wait time to conclude a lease of a warehouse has continued to increase basically as a result of low demand. Between 2015 and 2016 the average wait time was in the range of 60-90 days, towards the end of 2016 it had doubled to 150-180 days and in 2017, there were still many warehouses that remained in the market for upwards of 300 days and going into 2018.<\/p>\n<p>\u201cIt may need to be pointed out that apart from the lower demand, the reluctance of property owners to reduce rentals for these warehouses also helped contribute to a large percentage of them remaining in the market for these long periods of time.Warehouse rates in Lagos are in the range of N 1,200- N1, 800 per square foot and increase with proximity to the ports.\u201d<\/p>\n<\/p><\/div>\n<p><a hre=\"https:\/\/guardian.ng\/property\/marginal-rent-recovery-fuels-optimism-in-property-market\/\"> Guardian <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real estate Unprecedented correction in the property market is making landlords who originally seek out corporate &hellip; <a title=\"Marginal rent recovery fuels optimism in property market\" class=\"hm-read-more\" href=\"https:\/\/amazingproperty.com.ng\/blog\/marginal-rent-recovery-fuels-optimism-in-property-market\/\"><span class=\"screen-reader-text\">Marginal rent recovery fuels optimism in property market<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":3753,"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":[1009,1399,63,617,489,344,684,289,1384,3058,522,2886,15272,1007,41,140,818,84,678,10536,907,3053,15309],"class_list":["post-8872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-commercial-real-estate","tag-development","tag-for-rent","tag-house","tag-houses","tag-housing","tag-lagos","tag-landlord","tag-lekk","tag-location","tag-nigeria","tag-optimistic","tag-outlook","tag-owners","tag-property","tag-property-market","tag-real","tag-real-estate","tag-rental","tag-telecom","tag-tenant","tag-tenants","tag-ups"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/04\/Real-Estate1.jpg?fit=1280%2C720&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":6336,"url":"https:\/\/amazingproperty.com.ng\/blog\/can-i-negotiate-cheaper-rent\/","url_meta":{"origin":8872,"position":0},"title":"Can I negotiate cheaper rent?","author":"Amazing Property","date":"September 25, 2017","format":false,"excerpt":"Renting in Australia\u2019s capital cities can be an expensive proposition. So it makes sense that you might want to knock a few dollars off your weekly rental costs by asking your current or prospective landlord if they\u2019ll accept a cheaper rate. But are you actually able to negotiate cheaper rent?\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":"why-use-real-estate-agent_2000x1500-1024&#215;768.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/08\/why-use-real-estate-agent_2000x1500-1024x768.jpg?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/08\/why-use-real-estate-agent_2000x1500-1024x768.jpg?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/08\/why-use-real-estate-agent_2000x1500-1024x768.jpg?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/08\/why-use-real-estate-agent_2000x1500-1024x768.jpg?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":7774,"url":"https:\/\/amazingproperty.com.ng\/blog\/diversify-your-portfolio-and-invest-in-real-estate\/","url_meta":{"origin":8872,"position":1},"title":"Diversify Your Portfolio And Invest In Real Estate","author":"Amazing Property","date":"January 11, 2018","format":false,"excerpt":"The Chartered Financial Analyst (CFA) Institute categorizes real estate as an alternative investment that includes residential and commercial properties as well as mortgage-based securities and real estate investment trusts. For most real estate investors, these investments are characterized as income-generating properties that see revenue from rent earned and capital appreciation\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":"0e77bca21ab80e0a8d69ac81a9528151 S.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/0e77bca21ab80e0a8d69ac81a9528151_S.jpg?fit=424%2C283&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":7082,"url":"https:\/\/amazingproperty.com.ng\/blog\/online-property-portal-acquires-jumia-house\/","url_meta":{"origin":8872,"position":2},"title":"Online property portal acquires Jumia House","author":"Amazing Property","date":"November 13, 2017","format":false,"excerpt":"\u00a0 One of Nigeria leading online property portal, \u2018ToLet\u2019 in conjunction with their existing investors; Frontier Digital Ventures has acquired Jumia House Nigeria, a competing property portal for an undisclosed sum of money. Expectedly, the website will now merge the two platforms over the coming months, under the new name,\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":"Tolet.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/11\/Tolet.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/11\/Tolet.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/11\/Tolet.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/11\/Tolet.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/11\/Tolet.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":3203,"url":"https:\/\/amazingproperty.com.ng\/blog\/growth-in-online-real-estate-market-threatens-agents\/","url_meta":{"origin":8872,"position":3},"title":"Growth in online real estate market threatens agents","author":"Amazing Property","date":"April 10, 2017","format":false,"excerpt":"\u00a0 Real Estate Figures from online platforms are pointing to an increase in the number of owners and prospective tenants who are opting to sell their homes or rent property online without the use of an agent. 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