NIGERIA RETAIL REAL ESTATE PRICE INDICATORS - H1:2021

NIGERIA RETAIL PRICE INDICATORS - H1:2021

Nigeria retail (high street and strip malls) ended on a good note in 2021; with occupier and investment market witnessing strong growth and price appreciation.

According to research https://lnkd.in/dUC-F_7G from akinABRAHAM & ASSOCIATES, average price per square metre for high street and strip malls in Lagos increased 26.67% in December 2021 to an average of $2,256 compared to December 2020.

The positive growth and appreciation cut across locations and markets, signaling a massive comeback in developments, redevelopment and change in use activities.

The early year market report is showing a strong recovery and growth opportunities in the market as a result of:

1. Demands for logistics and warehouse from special needs, online shopping, distribution centers are fueling growth and appreciation within major cities and suburbs.

2. Roll out and Branch expansion drive to reach more customers and draw in more incomes top the agenda list of both essential and non-essential retailers.

3. Retailers' decision to buy rather than lease has been considered a smart move on the part of retailers to build up and increase their real estate holdings.

4. Renew interests in retail properties JV Development options are creating a favourable environment for business and development opportunities.

5. Major Infrastructure upgrade (especially in Lagos, Abuja, Port Harcourt, Ogun, Kano, etc.) is creating opportunities to link up suburban markets to gateway cities.

6. While the core and secondary retail markets are struggling with being bought and sold easily, high street and strip malls are gaining momentum in both investment and occupier market - through hybrid leasing and sales strategies.

7. Strip and street shopping centres remain a prime destination for grocery stores, shopping, clothing and footwear, health and personal care, and a key community centre for lifestyle related shopping and entertainment.

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