Nigeria’s real estate market has been mostly quiet this year with only a few big ticket transactions taking place; this is according to MCO Real Estate’s recent report.
Munachi Okoye, Managing Director, MCO Real Estate told CNBC Africa that the fundamentals of the Nigerian economy have not changed and this would positively impact the real estate space going forward.
“Nigeria still has the huge demographic base of consumers coupled with the growing economy and a positive gross domestic product (GDP),” said Okoye.
“There are a lot of opportunities waiting to be plugged; we are still seeing very good returns. There is a very strong demand for residential market,” he said.
MCO Real Estate also added that land prices have remained stable in 2015 with little transaction activity.
Okoye also noted that part of the optimism in the real estate space was informed by a pipeline of projects coming in 2016.
MCO Real Estate said the group also assist with bringing in international investors especially from Russia and China
A number of international investors had stepped backwards due to political and perceived currency risk which did not necessary mean there was no interest.
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Construction in the hospitality market has also been halted due to security challenges and Ebola virus that affected West African economies. Okoye believes that the hospitality sector will pick next year.
“We believe so, expect so and hope so that the hospitality market will pick next year. The hospitality has been through a challenging cycle due to Boko Haram, Ebola and political change.”