News
Demolition Of Landmark Beach Front Sparks Investor Exodus, Inflation Woes Hit Nigeria’s Real Estate Market
A recent report by Northcourt, titled “Nigeria Real Estate Market Review H1 2024,” has revealed that the demolition of the Landmark Beach front in Lagos is causing investors to reconsider their investment plans in Nigeria, with some even relocating to other jurisdictions.
The report states that the demolition, which was carried out due to the proposed Lagos-Calabar 700km coastal highway, has raised concerns among investors about Nigeria’s reputation for policy inconsistency and inadequate stakeholder consultation. The Landmark centre, estimated at $200 million, contributes significantly to tax revenue, with estimates suggesting $1.5 million.
The report also highlights the challenges posed by high inflation rates, which have increased construction costs and reduced the development of new real estate projects. Construction costs have spiked by over 78% YoY, while rents are rising across low-income areas, emphasizing the need for affordable housing.
Furthermore, the report notes that Nigeria’s real estate market has been impacted by unfavorable movements in foreign exchange rates and inflation, posing challenges for developers and investors. However, government intervention, such as tax rebates for construction companies and support for local production of building materials, could help lower construction costs.
Commenting on the report, Northcourt’s CEO, Ayo Ibaru, noted that the real estate sector contributed 5.20% to Nigeria’s GDP in Q1 2024, lower than the 5.31% it contributed in Q1 2023. He attributed this decline to poor economic performance, political gaffes, and limited Foreign Direct Investment (FDI).
Ibaru also stated that population growth continues to drive the demand for residential real estate, particularly in mid-market areas. However, he noted that the growing demand for affordable housing and sustainable building practices has led to a continual mismatch between supply and demand.
Read also : Controversial Demolitions, Banking Scandals, and Major Gas Deals: Latest News Highlights
The report projects that the real estate market in Nigeria could grow by 7.24% and reach a total estimated value of $2.14 trillion by the end of 2024. Residential real estate is expected to hold the largest share, with an estimated market volume of $1.77 trillion by the end of 2024.
Despite the challenges, the report notes that cooperative societies are making progress in raising funds for housing, albeit slowly. However, large-scale housing developments are largely between planning and early execution stages.
The report also highlights the challenges faced by the Nigerian real estate sector, including obtaining long-term financing on friendly terms, ownership complications stemming from the application of the Land Use Act of 1978, and limited mortgage availability due to high rates and lack of collateral.
In a bid to reduce the country’s planet-warming emissions, the UK government has announced a £180 million investment in solar panels for hundreds of schools and hospitals across the country.
This move is part of the government’s efforts to achieve its long-term climate goals and reduce reliance on fossil fuels.
The investment, which is the first major project from Great British Energy, the government’s new state owned energy company, is expected to provide solar panels for 200 schools and 200 hospitals.
This will not only help reduce energy bills but also cut carbon emissions and promote sustainability.
According to Energy Secretary Ed Miliband, “Great British Energy’s first major project will be to help our vital public institutions save hundreds of millions on bills to reinvest on the frontline.”
He added that the project will help reduce the financial pressure of energy bills on schools and hospitals.
The announcement has been welcomed by schools, unions, and NHS estate managers, who have long been advocating for measures to reduce energy costs.
Paul Whiteman, NAHT general secretary, said that the investment is a “step in the right direction” and will help schools manage energy bills, which have been a significant financial burden in recent years.
However, not everyone is optimistic about the investment.
Andrew Bowie, shadow energy secretary, argued that the government’s net zero plans will make the country “poorer.”
He claimed that the investment will lead to increased reliance on foreign powers like Russia.
In contrast, energy experts believe that investing in renewable energy will reduce the UK’s reliance on imports.
Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit, said that the investment in solar panels will improve energy security and reduce the amount of gas imported from countries like Russia.
The first solar panels are expected to be installed by the end of the summer, with a focus on areas of “highest need.”
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DIASPORA WATCH 39TH EDITION: GLOBAL NEWS EXPLOSION!
Putin and Trump hold the fate of Ukraine in the balance as they engage in high-stakes talks! What will be the outcome? Find out inside!
Mark Carney sworn in as Canadian Prime Minister! A new era begins in Canadian politics, but what does the future hold?
Trump drops a bombshell, declaring Biden’s last-minute pardons “null and void”! The implications are staggering – get the full story inside!
Global growth set to slow down in 2025 and 2026, warns OECD report! What does this mean for the global economy?
SpaceX capsule delivers four astronauts to International Space Station! A historic achievement in space exploration that will leave you starstruck!
Your WhatsApp account can be compromised in minutes – find out how to stay safe online!
African Union rejects parallel government in Sudan, warns of country’s partition! The AU takes a firm stance on Sudan’s political crisis – get the latest inside!
Nigeria set to appoint new envoys as vetting process begins! Who will make the cut?
Nnamdi Kanu expresses gratitude as Chief Justice reassigned terrorism case! A significant development in the Nnamdi Kanu case – find out more!
ECOWAS Parliament intervenes in Guinea-Bissau, Liberia crises! Regional leaders work towards a peaceful resolution – get the full story!
And in a heartwarming turn of events, Asake reconciles with ailing father, promises new house and responsibility for 11-year-old daughter!
Diaspora Watch Unveils 38th Edition: Get ready for the most anticipated edition yet!
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Diaspora Watch is proud to present its 38th edition, packed with the latest news, trends, and analysis from around the world.
Our cover headlines are buzzing with hot topics: the mass trial of opposition figures in Tunisia, the UK government’s refusal to pay Rwanda over a canceled migrant deal, and Trump’s address to a joint session of Congress, outlining his vision for a second term.
But that’s not all – we’re also diving into the world of sports, with a special feature on Nigeria’s first Super Bowl winner, Moro Ojomo, who received a hero’s welcome at Aso Villa. And, meet the 35-year-old Nigerian man who’s making waves with his incredible talent for building helicopters and guns from rubber!
In our lifestyle section, we’re exploring the devastating consequences of procrastination and how to overcome it. Plus, find out why Nigerian celebrities are caught up in Lamborghini fever!
As always, Diaspora Watch is your premier source for compelling stories, analysis, and perspectives that matter to Africans everywhere.
So, grab your copy now and stay informed, inspired, and connected to the global African community!
Diaspora Diva – Aisha Bowe
Diaspora Watch – Vol. 40
UK Invests £180 Million In Solar Panels For Schools And Hospitals
Diaspora Watch 20th Edition (October 14-20, 2024): Your Trusted Source for Global News and Insights
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