Monthly Newsletter - Issue 1, January 2017
Welcome to the Landmark Africa’s monthly bulletin, the first edition of the year.Looking ahead in 2017, many of the economic challenges and uncertainty that Nigeria experienced in 2016 have been carried over. The country was plunged into a recession which saw rising inflation and unemployment, while oil prices and revenue plunged. However, Nigeria is not alone when accessing the challenges and uncertainty that lies ahead in the coming year.
Many world economies are withessing a period of political and economic turbulence. The theme of this year’s World Economic Forum gathering in Davos, Switzerland was “Responsive and Responsible leadership”, both from a business and political perspective. In the context of Nigeria, this brings to the forefront the role of business in the broader economic environment. Leadership requires governments to listen to the needs of businesses and the wider populations. Restoring trust where it has been eroded in key institutions is critical, as well as putting in place policies that are motivated by the common good and shared values that will support business growth.
NEWS ROUNDUP
How landmark projects impact Dubai real estate value
The influence that an iconic project can have on its locale is often quite dramatic. Apart from becoming a magnet for activity and development, trophy properties or iconic projects have the ability to change the value of nearby real estate. In Dubai, dozens of iconic projects in the past years have kept the city in a constant flux, with its ‘city centre’ shifting from Deira in the 1980s, to Bur Dubai, to Dubai Marina and now Downtown Dubai.
Africa needs more financing institutions
Lusaka - Former Zambian president Rupiah Banda has called for more Development Financing Institutions (DFI's) to be established on the African continent in order to boost industry and infrastructure.
South African investment firm makes first U.S. acquisition in Dallas-Fort Worth
South African-based real estate firm Blazing Meadows Investments LLC has made its foray into U.S. real estate investment by snapping up a Fort Worth shopping center.
Lagos living: Solving Nigeria's megacity housing crisis
Affordable housing is a considerable challenge for urban areas with large populations, and this is particularly prevalent in the Nigeria's city of Lagos. More than 500,000 people move to the city every year, and across Nigeria, there is already a housing deficit of more than 17 million units.
Mega housing project gets $19m in Tanzania
Tanzania is championing to improve the livelihood of civil servants including teachers following the disbursement of Tsh.44 billion (approximately $19.7 million) to Watumishi Housing Company (WHC).
Nigeria Losing Out As Real Estate Capital Flows Shift From Sub-Saharan Africa To Europe
Currency volatility and lack of liquidity were the two main factors hindering real estate capital flows into sub-Saharan Africa in 2016, according to a report by real estate advisory firm JLL. They’re some of the reasons why real estate capital flows have been shifting from sub-Saharan African to Eastern and Southern Europe.
African real estate market still standing after tough 2016
African real estate has had a tough year navigating difficult economic conditions. Most investors on the continent remain private equity groups as opposed to long term investors or Real Estate Investment Trust ( Reit) investors.
9 Things To Expect In African Real Estate Markets In 2017
Shopping is changing in Africa. Formal retail developers are learning from the failures of malls in developed markets like the U.S., and applying new models to old ideas. African micro enterprises and small businesses will have a greater demand for shared space and flexible office space in the future.
‘Dubai of Africa’ suffers from construction slump
LAGOS: With frozen cranes, deserted construction sites and empty buildings, Lagos is suffering a hangover from a construction binge as Nigeria wrestles to overcome a damaging recession. Look no further than Eko Atlantic, billed as the largest real estate project in Africa, where frenetic construction has slowed to a snail’s pace.
How recession shaped real estate in 2016
The year 2016 has come and gone but the year cannot go without remarkable impressions it created for both operators and investors in the real property sector. It is certain, the Nigeria economy tanked and plummeted with no sector given a reprieve, however, no other sector of the economy was more affected than the real estate sector particularly in the major urban centers such as Lagos, Abuja and Port-Harcourt.
INFOGRAPHIC SNAPSHOTS
The Nigerian power sector presents significant investment opportunities, however it has continued to underperform despite the Power Sector Reform, which saw the unbundling of power generation and distribution from the state-owned Power Handling Company of Nigeria (PHCN).
Despite this, power failures have persisted in the country and overall production capacity has fallen short of the requirments of the country. The resulting effect has been that GDP growth has been stymied while the existing infrastructure is in need of significant repair and upgrading.
Cost of power cuts as a % of GDP
INSIGHTS FROM THE REAL ESTATE DESK
Mixed-use developments have quickly become a favourite for property developers. They provide an environment where people can live, work and play within close proximity, without having to travel great distances. This increasingly epitomises modern living patterns in many city centres. Rapid urbanisation has seen rising populations in major cities, especially in Africa. The growing urban population has increased congestion on the roads, however road expansions and the pace of infrastructure upgrades have not kept up with the increased population demands. As a result, there has been an increased desire to reduce commuting times and to live in close proximity of the place of work. Security concerns have also made mixed-use developments a preferred type of residential accommodation.
Another key benefit of mixed-use developments is the spreading of risk for investors. They are able to earn an income from diversified income streams, reducing their dependence on one sector of the real estate market. There are different economic and market dynamics that affect the residential and commercial real estate sector, however where each sector is able to work in close synergy, there is a significant benefit for the end user.
" Mixed-use developments enable property owners to diversify their risk as well as offering them multiple revenue streams through the flexible and efficient use of space" - Joe Orji, Development Manager, Landmark Group
CURRENT PROJECTS
UPCOMING EVENTS SCHEDULE
AfricaBuild Lagos 2017
Date: 14-16 February 2017
Venue: Landmark Event Centre, Lagos
MIPIM
Date: 14 -17 March 2017
Venue: Palais de Festivals, Cannes, France
East Africa Property Investment Summit
Date: 5 – 6 April 2017
Venue: Radisson Blu, Nairobi
Housing for Africa Conference and Expo
Date: 23 May 2017
Venue: Gallagher Convention Centre, Johannesburg
Africa Construction Summit 2017
Date: 30 - 31 May 2017
Venue: (TBC) Munich Germany
For more information:
GRI Africa Summit 2017
Date: 30 – 31 May 2017
Venue: TBC
COBRA 2017
Date: 29 – 31 August 2017
Venue: London
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