More Office Spaces in Development in Nigeria's Commercial Real Estate Sector

Experts believe that real estate will still continue to be very active in spite of the general slum in the economy.

According to Punch NG, a report form PricewaterhouseCoopers publish in the mid of 2015 reflected as estimation that the Nigerian real estate segment would be valued at $13.65 billion in 2015 that would be huge leap from the valuation of $9.16 billion in 2014. This then forms 7.6 per cent of the Nigeria's Gross Domestic Product.

The commercial real estate sector can expect to see the highest growth. At the moment 150,000 square meters of rental space is in development and expected to complete in the next six to 12 months.

According to a report titled "Nigeria real estate market outlook 2016" by the North Court Real Estate believes that the office space development plans have much to offer, saying, "The office development pipeline is very rich. Never has the nation enjoyed such influx of investment office space available for take-up by third parties as against owner-occupation, which was the norm in the past. The invasion may drive prices down moderately; we also postulate that occupiers may surrender leases in older buildings in preference for new builds, which may be willing to offer competitive prices."

As written on that same report, Lagos is expected to keep its lead with more than 25,000 square metters to be delivered. Ikoyi has also been officially name as the main destination for office rental spaces as Eko Atlantic City steadily stabilizes followed by second tier cities like Abuja.

As for prime office spaces, many are expected to be delivered in the 6,670 sq. Alliance Place in Lagos. The 15,734 sq. Heritage Place is also currently under development with Actis. The report also reflects information that suggests some developments like the Civic Towers and Landmark Tower were delivered in 2015.