It’s buyer’s market as rising towers struggle with demand drought
In spite of the negatives that define everything about the ravaging economic recession in Nigeria today, there are some positives and one of them is the ownership of the real estate market by the few buyers still standing, willing and ready to do transaction.
Currently, the Lagos skyline is being contested for by top 10 rising towers, mainly commercial office space, going up 13 to 15 floors with gross buildable areas (GBA) ranging from a minimum of 7,500 square metres to 19,500 square metres where construction is either on-going or completed.
The bigger challenge for owners and promoters of these towers is the scramble for tenants/occupiers as the market is suffering from severe demand drought which has given the buyer or prospective tenants some benefits and opportunities to choose from the very best and get value for money.
“Yes, we have seen some competition in the market and that has, increasingly, brought some efficiency into construction; build quality is the in-thing and a lot is being done to ensure product differentiation”, a developer, who did not want to be named, told BusinessDay, stressing that more money is now being put back into the buyer’s pocket even as he enjoys enhanced asset quality and value.
In recent time, the high profile status of Ikoyi as the most sought-after residential address in Lagos has been taken to a new level by up-market real estate investors who, in the last 24-36 months, have been in what seems to be a scramble for the skyline of this coveted area with multi-level mixed use projects.
Before now, any discussion on or around Ikoyi in terms of real estate centred on its residential buildings with their Victorian architecture, but changing business dynamics and rising demand for Grade A commercial office space in secure, serene and decent environment by international businesses have changed all that, creating a new commercial real estate destination not seen before in Lagos.
“There is nothing strange or particularly wonderful about what is happening in Ikoyi; what that simply tells you is that Kingsway is today the most desirable, most sought after office space address in Lagos”, says Obi Nwogugu, Head, African Capital Alliance Property Investment Company, adding, “we have seen some interesting developments on Ozumba Mbadiwe Street in Victoria Island but Kingsway is today the preferred destination”.
Victoria Island, arguably, the Central Business District (CBD) in Lagos, has a number of high rise projects such as The Civic Towers, Waves which is about 15 floors , The Wings which holds promise for 14 floors for office space among others. Eko Atlantic City is coming with its residential and commercial towers.
In Ikoyi, at various stages of construction are Kingsway Towers by Glover Road, a commercial office space development that will rise 15 floors on 15,000 square metres, and just close to it is the BAT Rising Sun opposite Ikoyi Club. This is a mixed use development that sits on 19 square metres, holding promise for 13 floors out of which four will be used for office space.
Already completed by Lugard and Kingsway Avenue junction is the Heritage Place, another commercial office development that will rise 14 floors on 15,600 square metres. Eight of the 14 floors will be for office space and the rest for parking.
Heritage Place, touted as Nigeria’s first Green building, is certified by Leadership in Energy and Environmental Design (LEED). Its design is aimed to achieve, at least, 20 percent more energy savings than a comparable building anywhere in the world.
The Sogenal Towers located beside the Mercedes Place is a mixed use development occupying 7,500 square metres and will rise 15 floors that will be leased or rented out as commercial office spaces.
CHUKA UROKO