The year 2015 was interesting for real estate in the emerging markets. While there were a number of challenges due to fluctuating oil prices, currency stability, and changing investment laws, last year brought exciting prospects for the real estate sector.
However, the question is: what does this year has in stock for developing countries and their real estate markets? For the Nigerian market, Lamudi Nigeria, the largest real estate platform in the country, stated that the year 2016 is expected to be a booming one for the real estate sector in the country.
According to PwC report, 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, where it accounts for 7.6 percent of the country’s GDP of $509.9 billion. With a growing population, the federal government launched the Nigerian Mortgage Refinance Corporation (NMRC) in 2014, aimed at providing affordable mortgages for Nigerians. Between 2015 and 2016, Lagos, Abuja and Port Harcourt are expected to build over 10 skyscrapers valued at over N500 billion.
Kenya has made a name for itself in the start-up and technology sectors. Nairobi has become a hub for global and local corporations hoping to explore the booming industries and take advantage of the opportunities East Africa has to offer. Industry experts hope this would 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 this year, as more Kenyans enter the job market and disposable income increases, more money is expected to be spent on housing.
By 2025, Quezon City of the Philipines is another emerging market 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. The online real estate platform’s data also reveals the city has the most affordable office space to rent, with an average price of Php503.79 (USD 10.73) per square meter per month.
By Pita Ochai