‘2015 Real Estate Market Low On Yields’ – Munachi

Managing Director of MCO Real Estate, Mr. Munachi Okoye has appraised the nation’s real estate market in this outgoing year, disclosing that it witnessed low yields with only a few big transactions taking place.

Okoye said that the fundamentals of the Nigerian economy have not changed and this would positively impact on real estate space going forward.

He explained: “Nigeria still has the huge demographic base of consumers coupled with the growing economy and a positive gross domestic product, GDP. “There are a lot of opportunities waiting to be plugged; we are still seeing very good returns.

There is a very strong demand for residential market,” Okoye added. The industry expert also noted that land prices had remained stable in 2015 with little transaction activity, noting that part of the optimism in the real estate space was informed by a pipeline of projects coming in 2016.

He clarified: “A number of international investors had stepped backwards due to political and perceived currency risk which did not necessary mean there was no interest. Africa is one of the last markets left that is not developed’’, he stated.

“We believe so, expect so and hope so that the hospitality market will pick next year. The hospitality has been through a challenging cycle due to Boko Haram, Ebola and political change”, the MCO boss added