By Lukmon Oloyede.
According to PwC, 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 which was released recently further states that the real estate sector is the largest in the economy, where the sector accounts for 7.6 percent of the country’s GDP of $509.9 billion.
With a growing population, the Nigerian government has launched the Nigerian Mortgage Refinance Corporation (NMRC) in 2014 aiming to provide affordable mortgages for Nigerians. Between 2015 and 2016, Lagos, Abuja and Port Harcourt are expected to erect over 10 skyscrapers valued at over N500 billion. The report indicated that Lagos is fastest rising city in emerging market.
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Surprisingly, Nairobi, Kenya’s capital is rated second. 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.
By 2025, Quezon City in Philippines is expected to have a population of almost four million. Metro Manila’s largest and most populous city had the greatest volume of online search traffic between January and June 2015, according to Lamudi’s onsite data. Search volume for the city grew, on average, 22 percent per month during the same period. Quezon City is rated third.
The growing tourism in Myanmar has led to the growth of real estate in the state. At the end of 2015, the Ministry of Hotel and Tourism in the country 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 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.
While in Saudi Arabia, this year will see the construction of a $320 million mall in Riyadh. The project will include office space, retail units, restaurants, and 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. Hence, Riyadh of Saudi Arabia maintains fifth position.
Other cities in sixth and seventh position respectively are Kandy, Sri Lanka and Casablanca, Morocco.
By Lukmon Oloyede.