REAL ESTATE NEWS UPDATE | Week 1, August

Nigeria ranked 83rd in global real estate transparency index

Global Transparency Index

Photo Credit: Jones Lang LaSalle

A newly released biannual Global Real Estate Transparency Index (GRETI) 2016 by property consultancy firm Jones Lang LaSalle (JLL), Nigeria ranks 83rd out of 109 markets covered.Nigeria’s real estate transparency score was 3.8 in 2016, a marked improvement in transparency. The scores in the Index range between one and five, with one representing the highest level of transparency and five being the least transparent.

The index reveals, which countries provide the most favourable operating environments for investors, developers and corporate occupiers. Covering 109 markets worldwide, it quantifies transparency based on 139 variables relating to transaction processes, regulatory & legal frameworks, and corporate governance. Globally, transparency scores have advanced by an average of 2.4per cent (2014-2016), matching broadly the improvements made between 2010-2012 (at 2.9per cent) and 2012-2014 (at 3.4per cent). The United Kingdom, Australia, Canada and the United States hold the top positions.

With growing interest in Sub-Saharan Africa (SSA) from corporate and international real estate investors, GRETI 2016 has further extended its footprint across the region to provide coverage of 15 countries, with Rwanda, Tanzania and Ivory Coast joining the 12 countries surveyed in GRETI 2014.

Culled from The Guardian

UAC Nigeria Records PBT Growth

UAC Nigeria

Photo Credit:Google                                      

The United African Company has released a report according to the data released by the Nigerian Stock Exchange earlier this year. In the report, it was confirmed that for the second quarter of 2016 (Q2), sales of N19.3bn went down by a marginal value of -3.5% year -to-year (y/y), while Profit before tax (PBT) rose up by 11.7% y/y leading to a profit margin of N2.2billion.

The Property sales, also contributed to the overall PBT performance as the value went up by 162% q/q to N600m.The management stated that for Q1, the sales projects against actual sales didn’t meet up to expectations as UACN Property Development Company (UPDC) management were said to be strategizing on how  to enhance the property sales performance.
The management also expressed concern over rising Operating Expenditure (OPEX) costs which was observed to be 30% y/y during the quarter in view and was in  tandem with estimated Q2 projections which was  an averaged value of N254milliion.

Culled from proshareng

Amaka Osarieme Nwaokolo Plans To Fix  Housing ShortageIn Nigeria

 

A Young Nigerian Entrepreneur, Amaka Osarieme Nwokolo

Photo Credit:Google                                       

Nigeria, with a population 173 million, is short an estimated 17 million houses, about 95 percent of the Nigerian population cannot afford to rent or own a home, according to Nigerian entrepreneur Amaka Osarieme Nwaokolo. Her startup, Blue Tower House Services, aims to meet the demand for affordable housing in Abuja Nigeria, through innovative building technology.Nwaokolo says she can reduce the cost of building and in the process, lower rental rates. She plans to introduce flexible monthly payment plans.Her ideas and efforts landed her a spot in U.S. President Barack Obama’s coveted Young African Leaders Initiative.

A one-bedroom apartment outside the Abuja city center rents for an average of $250 a month, according to research and data site Numbeo. Blue Tower House rental rates will start at about $85 a month, Nwaokolo said.

Amaka Nwaokolo spoke to AFKinsider about her experiences in the Young African Leaders Initiative, and how they helped her grow her business and solve local problems in Nigeria.

Culled from AFKInsider

Law against land touts most welcome

Land Touts in Lagos State

Photo Credit:Google                                                

Recently, the Lagos State House of Assembly passed a Bill which criminalises the activities of land touts and grabbers popularly known as “Omo Onile’s” or “Ajagungbale’s”, an action which has  been hailed in many quarters. The reason for this is not far-fetched. These hoodlums have been making life unbearable for landowners and property developers in Lagos State.

The reality of the menace of Omo Onile to property owners in Lagos is evident in the disputes over land as well as warning notices such as: ‘This Land (or House) Is Not For Sale, Buyers Beware’ that have become common sights in most parts of the state.

Among the outstanding features of the Bill are the prohibition of forceful land take over, entry by force, illegal occupation of property, use of land agents, illegal use of law enforcement agents, encroaching with weapons, sales of property without authority and professional misconducts by licensed property practitioners. Those found culpable risk between five- and 21-year jail terms.

Culled from Vanguard

Real estate operators decry MPR hike on property industry

Monetary Policy

Photo Credit:Google

Some operators in the real estate industry on Friday said the increase in Monetary Policy Rate by the Central Bank of Nigeria would have adverse impact on the industry.NAN recalls that CBN on July 26 announced an increase in MPR by 200 base point from 12 per cent to 14 per cent.

Olayemi Shonubi, a former Chairman of the Nigerian Institute of Quantity Surveyors, Lagos State Branch, said the increment would pose a lot of burden on developers and mortgage institutions.

 “And this implies that the nation’s mortgage system, which has not been strong and effective, will get weaker because investors will be completely discouraged from using the scheme “ – Shonubi said:

Chucks Omeife, the past President of the Nigerian Institute of Building, also said the development would result to breach of loan/mortgage agreement contracts.

Culled from today.ng

Real Estate Vacancy Factor Index (VFIX) Up to 72% in June 2016

The Vacancy Factor Index (VFIX) for Q2 2016, came in at 72% for the month of June. This is an indicator of the state of the real estate markets in the upper class neighborhoods of Lekki, Victoria Island and Ikoyi.

The report shows a marginal increase in the vacancy factor – from 171 to 172 – in June 2016. This implies a 72% rise in the number of vacant properties based on the housing stock as at January 2015.

Lekki-Epe Expressway Lagos

Photo Credit:Google                                                 

Vacancy rates were the highest in Lekki suburb. It also has the largest number of residential developments. Ironically, in spite of the high vacancy, it has the lowest level of uncompleted projects.Admiralty way, a major commercial street in Lekki, has the largest number of vacant properties.

Victoria Island, the proxy central business district, has the lowest level of vacancy. The low vacancy still persists, as the impact of Eko-Atlantic city that increases the level of supply is not yet felt in the market.

Ikoyi is an elitist suburb area famed for its overpriced properties – mainly new apartment blocks compared to stand-alone houses.Banana Island is being extended with a potential significant impact on aggregate supply and values. This move will increase the supply of housing in Ikoyi in the long run.

The residential VFIX increased by 6.6% from 177 in March to 189 in June 2016. Commercial VFIX on the other hand has remained flat at 148.

Culled from proshareng

Ikeja Local Government Plans To Construct $50m Shopping Mall

Alade Mall, Ikeja

Photo Credit:Google

The Ikeja Local Government has finalized plans to construct a shopping mall . The mega mall expected to cost $50M, will be constructed at the location where the old Alade market was formerly located. For this reason, the old Alade market has been dismantled and the location fenced to ward off land-grabbers and to show a sign of intent that the location is actually meant for construction purposes.

According to Masters Reality International Concepts Limited who are the developers, the four storey ultra-modern shopping mall also known as Alade mall, has been designed to contain 530 cars, and sits upon 1.5 hectares of land. It is expected that the Alade mall project will offer business spaces with sizes ranging from 11 square meters to 500 square meters so that it can harbour different sizes of business enterprises.The developer intends to attract some anchor tenants with the 500square meters size shops.

The project is supervised by Chief Folashade Tinubu-Ojo, President, Association of Commodity Market Women and Men, The Lagos state Government, and Ikeja Local Government Area.

Culled from The Nation

Fashola Reveals Plan For Housing Sector In Nigeria

Minister of Housing,Works and Power,Babatunde Fashola

Photo Credit:Google                                                         

Minister of Power, Works and Housing and former Governor of Lagos state, Mr. Babatunde Fashola SAN has revealed plans by the Federal Government to make affordable housing a dream come true for Nigerians in fulfilment of the campaign promises made by President Muhammadu Buhari.

According to the Minister, the housing plans will be made possible in partnership with the private sector.Sharing details about the plans In terms of design, The minster explained that that government began with was 480 different designs, with various sizes of windows and doors, different sizes of tiles, and finally reduced it to 12 with additional plans to bring it finally to six in a bid to fulfil the set objectives set by the Buhari administration.

According to the minister, it is also believed that the construction phase of the project will drive industrialization and create employment opportunities.

Culled from HelmetNews

Eris Property Group Unveils Sogenal Tower Design

Sogenal Towers, Alfred Rewane (Kingsway road), Ikoyi

Photo Credit:Google                                             

Eris property and Sogenal group has concluded plans to being the construction of a 14-storey office building in Lagos. The project with an area size of 11,560m2 is expected to be completed in the second quarter of 2018.

The project is jointly funded by Momentum Africa Real Estate Fund and some private investors.Designed by James Cubitt Architects, Boogertman and partners Architects, the building will reflect style, infrastructure lifestyle revolution and space usage.The Sogenal, located at the high brow Ikoyi area of Lagos, is on the ever busy commercial Alfred Rewane road also called (Kingsway road). It will then be in the midst of two other building, the Heritage Place and the Temple tower thereby adding beauty and urban influence to the Ikoyi business area.

“Through this project, we have designed a building of enduring legacy that will add value to the urban design of Lagos” Said Otunba Funso Lawal, Chairman of the Sogenal Group.

Culled from estateintel

Lagos State Plans To Demolish Buildings Under High Tension Cables

High Tension Cables in Lagos

Photo Credit:Google

The Lagos State Ministry of Physical Planning And Urban Development has issued a seven day ultimatum to owners of properties erected under high tension cables in the State. In a statement signed by the State Commissioner of Physical and Urban Planning, Ministry expressed its action plan to implement the Urban and Regional Planning and Development law of 2010.

According to the Commissioner, the law prohibits buildings under the center-line of overhead electric cables, and in accordance with the urban plan, the State has specified distances to be kept between a property and electric tension cables. To ensure strict compliance to the rule of law, the State Government has also called upon security agencies in the State to ensure that applicable laws are strictly enforced by demolishing all properties in the Right-Of-Way of utilities and services within the State.

The standard distance for buildings from the centre-line of overhead wires and horizontal distance between such buildings is 6 metres in the case of 11kV wires and 9metres distance for 33Kv wires.

Culled from Guardian

 

 

 

 

 

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