An analysis of institutional acquisitions and disposals in real estate investissement valued at $1.8 billion across Africa in le passé two decades reveals that Nigeria has the largest real estate investissements by country.
The country has, within this period, attracted $523 million investissement into the sector, ranking ahead of Mozambique and Mauritius that were ranked second and third with $268 million and $256 million investment, respectively.
What this means is that opportunities abound in the Nigerian real estate market and savvy investors are not glossing over that. The country is almost a green field for investors. The size/value of real estate opportunity in the country is estimated at $56 billion.
This is, however, understandable in a country of 200 million population where housing demand-supply gap is well over 20 million while annual housing output is between 50,000 and 100,000 units. Homeownership level in the country, according to experts, is a little above 20 percent.
The investment analysis looks further at the value of investments by cities and reveals that Lagos, Nigeria’s commercial capital, tops the list with $523 million, followed by Accra, the Ghanaian capital, with $230 million while Maputo in Mozambique comes third with $201 million investment.
Bismarck Rewane, CEO, Financial Derivative Company (FDC), who provided this information in his June Breakfast Conference in Lagos, also hinted that in terms of market segment and value, retail was most preferred, attracting $687 million investment and offering 8.6-10 percent yield.
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