What the future holds for Nigeria’s office & retail property market

In a recent interview on CNBC Africa, the CEO of Broll Nigeria, Bolaji Edu, discussed the dynamics and future of Nigeria's office and retail property market. According to Edu, 2019 was a standout year for the office market in Nigeria, with a take-up of over 20,000 square meters of Grade A office space. This marked the highest rate in the last five years and was double the amount seen in 2018 and 2017. The increased take-up was largely driven by technology companies and domestic oil and gas firms, benefiting from the rebound in oil prices. Looking ahead to 2020, Edu shared that while it is still early to make concrete predictions, there are indications that the take-up level in the office market could remain strong, approaching the 2019 levels. However, it is essential to consider the significant amount of new office space set to be delivered in the next few years, which could impact market dynamics. Despite macroeconomic challenges such as the weak economy and volatile oil prices, Edu believes that there are untapped opportunities in Nigeria's office and retail space for domestic investors. He highlighted the shift towards smaller, more specialized malls as a trend in the retail sector, with a focus on mixed-use developments. In the office market, the emphasis is on providing high-quality office spaces that meet the demands of modern tenants, including adequate parking, top-notch specifications, and amenities such as building management systems. Overall, while challenges persist, Edu remains optimistic about the potential of Nigeria's property market.