Emerging markets to watch in 2016: Value of Nigerian market expected to rise 20% to $13.65bn

For real estate market in the emerging economies, 2015 was as tough and challenging as it was exciting and interesting depending on jurisdictions and their economic circumstances. However, in spite of the challenges which came as a result of fluctuating oil prices, currency stability, and changing investment laws, it is hoped that this new year holds prospects for the markets.

Close watchers are taking a look at the markets and Nigeria’s leading online real estate marketplace, Lamudi Nigeria, presents a few of the emerging markets to watch in the new year.

Launched in 2013, Lamudi is a global property portal focusing exclusively on emerging markets. The fast-growing online platform is currently available in 34 countries in Asia, the Middle East, Africa and Latin America, with more than 800,000 real estate listings across its global network.

Lagos, Nigeria

The online platform quotes Pricewaterhousecoopers (PwC) as saying that the Nigerian real estate sector is expected to be valued at $13.65 billion in 2016, compared to the value of $9.16 billion in 2014. The report further states that the real estate sector is the largest in the economy that accounts for 7.6 percent of the country’s GDP of $509.9 billion.

With a growing population, Nigeria launched a secondary mortgage institution known as  the Nigerian Mortgage Refinance Corporation (NMRC) in 2014 aiming to provide affordable mortgages for Nigerians. It is expected that beginning from this new year (2016), Lagos, Abuja and Port Harcourt are to develop over 10 skyscrapers valued at over N500 billion.

Nairobi, Kenya

Kenya has made a name for itself in the startup and technology sectors. Nairobi has become a hub for global and local corporations looking to enter these booming industries and take advantage of the opportunities East Africa has to offer. As a result, the commercial and residential real estate markets are booming. Industry professionals expect this to continue in 2016. While international entrepreneurs are settling in Kenya’s capital, population growth is also expected to boost the city’s real estate market in 2016, and  as more Kenyans enter the job market and disposable income increases, it is expected that more money is to be spent on housing.

Mandalay, Myanmar

Tourism is booming in Myanmar. At the end of 2015, the Ministry of Hotel and Tourism announced plans to attract 7.5 million tourists to the country by 2020, with a seven-year master plan. As a result, Myanmar’s second city – Mandalay – is improving its infrastructure and welcoming the construction of both small, independent and high-end hotels. Housing in the city is much cheaper than in Yangon. However, residential and commercial real estate is in short supply. As the number of tourists to the city increases, it is expected to undergo significant development to improve the real estate options available to visitors.

Riyadh, Saudi Arabia

This year will see the construction of a $320 million mall in Riyadh. The project will include office space, retail units, restaurants, a boutique hotel as well as recreational areas. The Riyadh Walk will cover 137,000 square meters of Saudi Arabia’s capital city and is considered to be a step forward in upgrading the country’s commercial mixed-use projects. Construction is expected to boost Riyadh’s commercial real estate sector, and lead to the development of more residential, commercial and industrial properties.

Kandy, Sri Lanka

The removal of land lease tax in Sri Lanka is expected to encourage non-nationals to invest in the country’s growth and development outside Colombo. As Sri Lanka’s first ‘Smart City,’ Kandy is expected to welcome an increased number of international corporations, entrepreneurs, and startups, eager to invest in the city’s growth.

Consequently, the property sector is forecast to grow from strength to strength over the next 12 months. Furthermore, the continued development of the Colombo-Kandy Expressway is expected to transform the city into a hub of activity, which will likely result in a surge of real estate activity.

Casablanca, Morocco

In 2015, Morocco ranked eighth in Cushman & Wakefield’s list of top emerging markets in the world. According to the report, the country was among the top 10 with the lowest risk to invest and open a business in real estate. Casablanca, considered the country’s economic capital, is experiencing stable rents, increased supply, and the development of large-scale commercial and office projects. The city shows great potential for both tourism and business, with the amount of office space expected to double in the next four years.

CHUKA UROKO