16 Jul 2015 - Nigeria (Lagos)
I am in Lagos for this week, focusing particularly on the apartment and townhouse market around Ikoyi and Banana Island.
This market is based almost entirely on ex-pat demand, and demand is relatively low. Many of the big corporates here have made their own accommodation arrangements and are effectively not in the market anymore. Examples include:
- Total pre-leasing Eko Towers II next to their current HQ on VI
- BAT's new office/apartment building on Kingsway
- ExxonMobil's leasing of the Black Diamond Hotel
- Chevron's mixed use campus at Lekki
Prices for exceptional product have held up, but there is a lot of development that is not so good quality and some of this has been on the market for years.
At the top end, say an apartment of 200+ sq m in a building such as Ocean Parade, rents can be over USD 100,000 per year.
More generally for 3-beds the range is USD 60-80,000 per year, and for 2-beds USD 40-60,000 per year.
However, in the landmark (but dated) 1004 apartments on VI a 3-bed is around USD 20,000 per year.
I am staying in a new boutique hotel called the Fahrenheit which is opposite the Eko Hotel and close to the Eko Atlantic sales office. There is a nice breeze off the sea up on the rooftop bar, but it's noisy late into the night which is a disadvantage if you need sleep.
New PwC HQ at Landmark Towers, Kuramo Waters, VI Extension