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Why real estate market is yet to recover, by facility managers

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From residential to commercial, office space and retail mall, there are signs that real estate market is still struggling to recover from the lull, New Telegraph has learnt.

 

This is evident in low demand for properties, existing vacancy rates, rent service charge defaults and low construction activities in the sector – almost six months after Nigeria came out of one and half years recession.

 

Group Managing Director, Alpha Mead, Mr. Femi Akintunde, an engineer, sais despite the fact that the market characteristics have been gradually fading away owing to improving macroeconomic indices, real estate market is still struggling to recover from the lull.

 

He noted that real estate market was one of the worst hit sectors during the 15 months’ period of economic recession, which lasted from first quarter 2016 to second quarter of 2017.

 

“The sector saw its growth dim as the market was defined by low demand, widening vacancy rates, increasing case of rent service charge defaults and slowdown in construction activities,” he said.

 

Speaking during the pre-event press briefing of 2018, Nigerian Facilities Management (FM) Roundtable, Akintunde said that for real estate markets to receive a new lease of life in post- recession Nigeria, it would be determined by the roles FM would play in enabling positive experiences for its stakeholders.

 

Commenting on current situation in the real estate sector, the Alpha Mead boss stated that report from the International Real Estate Partners (IREP), Nigeria, a strategic business units of Alpha Mead, had shown that rents in commercial properties such as Grade ‘A’ office space could lightly fall below the current average of $700 (N252,000) per square metre (psqm) as the market anticipates arrival of 37,000 square metre in Victoria Island and Ikoyi, Lagos. He pointed out that demand for Grade ‘A’ office space has not been growing at the same pace, adding that report had shown that rise in neighbourhood retail stores have been decreasing footfalls at the modern retail centres.

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  1. Pingback: Why real estate market is yet to recover, by facility managers — New Telegraph - Naijaray Headline

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