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.
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.
ExxonMobil Guyana has announced plans to increase oil production from its Stabroek block by 18,000 barrels per day (bpd). The capacity of the Unity floating production, storage, and offloading (FPSO) vessel will increase from 252,000 bpd to 270,000 bpd, pending approval from local authorities. ExxonMobil Guyana currently produces 665,000 bpd, and future developments include the Hammerhead project, which aims to produce 120,000-180,000 bpd. The company’s investment is set to further strengthen Guyana’s economy as it grows into a major oil producer.
In political developments, President Irfaan Ali has announced several benefits ahead of Guyana’s upcoming elections. The new incentives include free college tuition and a one-time cash handout of nearly $1,000 per household, benefiting 264,000 families. The minimum wage will also increase from $350 to $500 starting next year, aimed at reducing the cost of living for Guyanese citizens.
Guyana’s economy, bolstered by its growing oil sector, saw a remarkable 60% GDP growth in 2022, the highest in the world, according to the IMF. To further utilize oil revenues, the government is launching various infrastructure projects, including hospitals, schools, and a $1.9 billion gas-to-energy initiative.
At the same time, the 115th COTED meeting on agriculture in CARICOM is tackling challenges like climate change and underdeveloped agricultural value chains, working towards the 25 by 2025 Food Security Initiative.
Dive into the world of Diaspora Watch and stay informed, engaged, and inspired.
FREE Digital View:
https://diasporawatch.com/diaspora-watch-20th-edition-october-14-20-2024-your-trusted-source-for-global-news-and-insights/
Print on Demand: https://www.magcloud.com/browse/issue/2918067?__r=1069759
SUBSCRIBE TO DIASPORA WATCH NOW ON THE BELOW LINK !!!
https://diasporawatch.com/subscribe-to-diaspora-watch-newspaper/
Hashtags:
#GuyanaOil #ExxonMobil #FreeTuition #GuyanaEconomy #COTED
CARICOM ministers gathered in St. Vincent during the 18th Caribbean Week of Agriculture (CWA) to address regional food security and sustainability. Key discussions included the “25 by 2025” initiative, blue economy development, and strategies to enhance intra-regional trade and agriculture. The ministers are also preparing for COP29, pushing for urgent climate action, and seeking financial commitments to protect Small Island Developing States (SIDS) from the impacts of climate change. Notable awards were presented to outstanding farmers for their contributions.
Dive into the world of Diaspora Watch and stay informed, engaged, and inspired.
FREE Digital View:
https://diasporawatch.com/diaspora-watch-20th-edition-october-14-20-2024-your-trusted-source-for-global-news-and-insights/
Print on Demand: https://www.magcloud.com/browse/issue/2918067?__r=1069759
SUBSCRIBE TO DIASPORA WATCH NOW ON THE BELOW LINK !!!
https://diasporawatch.com/subscribe-to-diaspora-watch-newspaper/
#CWA2024 #FoodSecurity #ClimateAction #COP29 #CARICOM #SustainableAgriculture
As Nigerians face mounting economic hardship from soaring petrol prices and inflation, leaders like President Tinubu, Senate President Akpabio, and Remi Tinubu make insensitive remarks that mock the suffering populace. President Tinubu claims his neoliberal reforms will benefit Nigerians in the future, while Akpabio dismisses citizens fleeing the country’s economic downturn as unpatriotic. With an already devastated middle class and rising poverty, these tone-deaf responses intensify frustrations.
Dive into the world of Diaspora Watch and stay informed, engaged, and inspired.
FREE Digital View:
https://diasporawatch.com/diaspora-watch-20th-edition-october-14-20-2024-your-trusted-source-for-global-news-and-insights/
Print on Demand: https://www.magcloud.com/browse/issue/2918067?__r=1069759
SUBSCRIBE TO DIASPORA WATCH NOW ON THE BELOW LINK !!!
https://diasporawatch.com/subscribe-to-diaspora-watch-newspaper/
#NigerianEconomy #NeoliberalPolicies #Tinubu #EconomicHardship #Nigeria #FuelPrices
From Front-Runner To Follower: Nigeria’s Economic Decline
ExxonMobil Boosts Guyana Oil Output, Guyana Offers Free Tuition Ahead of Elections
CARICOM Ministers Boost Food Security & Climate Action at Caribbean Week of Agriculture
-
Trending2 days agoDiaspora Watch 20th Edition (October 14-20, 2024): Your Trusted Source for Global News and Insights
-
Diaspora1 week agoGrenada Prime Minister Calls for Collective Effort at Grenadian Diaspora Town Hall
-
Diaspora7 days ago
Diaspora Watch 19th Edition (October 7-13, 2024): Your Trusted Source for Global News and Insights
-
Business6 days ago
Echoes Of Unfulfilled Promises In Nigeria’s Journey
-
News5 days ago
Nigeria Implements Groundbreaking Policy to Sell Crude Oil in Naira
-
Business1 day agoNigerian Banks’ Upgrade Chaos: A Call for Customer-Centric Solutions