Investment opportunities in Real Estate
Real estate development across all sub sectors.
Providing risk capital and bank financing for real estate.
Affordable low income residential property development.
Providing related construction services.
3.5.1. Residential properties Investment in private residential estates and luxury residential apartments is growing by the day. The gap in residential homes is estimated to be in a deficit of about 17 million housing units as at 2013. This presents a huge opportunity for private investments in the sector as well as public private partnerships to drive low income residential properties.
3.5.2. Commercial office properties Real estate developers and well funded conglomerates dominate the supply of commercial properties. Investments in grade-A commercial properties is growing in Nigeria’s major cities of Lagos, Abuja and Port Harcourt. There are also opportunities in the mixed-use space.
3.5.3. Industrial properties Industrial estates are established by the government. Activities in most of the industrial estates will increase with investment in power which is expected to trigger more activity.
3.5.4. Commercial retail and hospitality properties Retail mall development has picked up in the last 5 years largely driven by the demographics and urbanisation rate. There are multiple shopping malls and hotels being developed across the country dominated by a mix of local sponsors, private equity firms and supported by local and foreign banks.
3.5.5. Mortgage finance The Nigeria Mortgage Refinance Company (NMRC) was established (with ownership by mortgage and commercial banks, Development Finance Institutions and Government Sponsored Institutions) to bridge the costs of funding residential mortgages and to promote availability and affordability. The National Housing Fund (NHF) creates access to mortgage finance. Employers are mandated to deduct 2.5% of employees’ basic salary and remit to the Federal Mortgage Bank of Nigeria (FMBN). An individual needs to have contributed to the NHF for a minimum of six months to access a housing loan from the FMBN.