Real estate development activities in Lagos, the country’s commercial hub, plunged by 14 per cent in 2022 as a result of heightened election uncertainty, currency challenges and inflation, an Intel report said.
The report titled “Lagos Real Estate Development Pipeline Report” disclosed that despite its volatility, the real estate market has remained resilient with bright spots emerging across a majority of the sectors reviewed.
The report which highlighted the number of uncompleted projects under the office, residential, hospitality, retail and healthcare sectors in Lagos State stated that rapid infrastructure development ongoing in the state has ushered in new opportunities for developers and investors.
According to the report, the office sector recorded a decline in the development pipeline to 16 per cent of total stock from the 25 per cent recorded in 2021.
The report adds that the pipeline of residential developments estimated at 25,000+ units would not be sufficient to meet demand, creating an exciting opportunity for developers, particularly in the mid-low-end segment.
Commenting on the report, the Insights Lead, Estate Intel, Tilda Mwai, noted that the enactment of new policies such as forex convergence could affect the confidence of institutional investors in the new government.
She said, “Despite the volatility in the macroeconomic environment, the real estate market has remained resilient with bright spots emerging across sectors such as residential and healthcare. Rapid infrastructure development too has also ushered in new opportunities for developers and investors in Lagos and its neighbouring states such as Ogun State.