Tribune Online
  • Home
  • #NigeriaElections2023
  • News
  • Columns
  • Editorial
  • Entertainment
  • Politics
  • Health
  • Sports
  • Opinions
No Result
View All Result
  • Home
  • #NigeriaElections2023
  • News
  • Columns
  • Editorial
  • Entertainment
  • Politics
  • Health
  • Sports
  • Opinions
No Result
View All Result
Tribune Online
No Result
View All Result

Expert predicts growth in Nigeria’s real estate investment beyond $13.65 billion in 2016

by Tribune Online
May 31, 2017
in Business
Reading Time: 4 mins read
A A
BUA, NSA, domestic investors

In view of the progress recorded in the real estate investment REIT’s in Africa in 2016, financial experts and real estate practitioners have all expressed the hope of an improved development in 2017, next year and beyond.

This optimism was expressed at the just concluded inauguration of Real Estate Investment Trust (REIT) in Sub–Saharan African conference, held in Lagos, last week.

The event that had as its theme: ‘Real Estate Investment in Sub-Saharan Africa: The Role of Capital Market,’ hosted by the Nigerian Stock Exchange, examined how Nigeria’s real estate sector will benefit from the impending prospects.

Addressing the participants,  Chief Executive Officer, the Nigerian Stock Exchange, Mr Oscar N. Onyema, citing Ernest & Young’s report of 2016, noted that global market capitalisation of REITs now stands at approximately $1.7 trillion, up from $734 billion in 2010, and that the United States of America’s REIT market has grown by almost 150 per cent, while the market capitalisation of non-USA REITs has more than doubled.

According to Onyema, the two fastest growing markets in the last five years have been Australia and Japan, both of which have now overtaken France and the United Kingdom, to be the second and third largest global REIT markets, respectively.

“Globally, 16 jurisdictions have introduced REIT or REIT-like legislation since 2006, although not all have fully functioning active participants.

Related News

CBN has spent N12.65bn on agriculture intervention since January —Emefiele

Smallholder farmers in North-East Nigeria to receive N6.9m insurance payout claims to supplement yield

FG, stakeholders advocate animal welfare to prevent losses

“It gladdens to know that Nigeria’s real estate sector has recorded steady and consistent growth over the last decade. PwC in its report titled, ‘Real Estate: Building the Future of Africa,’ predicted that Nigeria’s real estate investment will rise by about 49 per cent, from $9.16 billion to $13.65 billion in 2016, which had come to pass.

“The report attributes this to a growing middle class driving demand for residential property development and indirectly, retail, industrial and commercial real estate development.

“We believe that this growth can be accelerated by deploying capital market tools such as REITs, listing of real estate companies, and creation of real estate ETFs to unlock capital in the sector.

According to SEC’s CEO, since 2007, when the Securities and Exchange Commission (SEC) introduced the framework for the establishment of REITs, the Nigerian investing public has been given an opportunity to invest in a diversified portfolio of choice real estate assets.

“Whilst the Nigerian market may not be as developed as other emerging markets such as Mexico, South Africa and Singapore, this asset class has definitely come to stay.


“Today we have about N40 billion in REITs market cap listed on the NSE and a total of N96 billion in the construction/real estate sector of our equity market.

“In spite of the challenging economic head winds in Nigeria and other commodity based economics, the capital market (including the NSE) remains one of the main vehicles to promote sustainable economic development and wealth creation,” he said, noting that the  conference is in line with the Exchange’s strategic initiative to promote and create the enabling environment for sustainable development of Real Estate Investment Trusts (REITs) in Nigeria and sub-Saharan Africa.

To create a more transparent, liquid and accessible market structure in line with global best practices for REITs, Onyema stated that SEC recently notified the capital market ecosystem and other stakeholders of the proposed changes in the market regarding the reporting and valuation of Real Estate Investment Trusts (REITs); and other collective investment schemes listed on The NSE.

The proposed changes, which will be implemented over the next three quarters of 2017 are aimed at promoting transparency, disclosure, visibility and liquidity of listed REITs and Closed End Funds in our market.

The changes, he said, will also make it easier for existing and potential investors to access information required to make investment decisions thereby contributing to the growth of these products in the Nigerian market.

He also informed that REITs and Closed End Funds listed on the Exchange will be reclassified from the Main Board to a separate board specially created for the purpose under the Equities Market.

“Through our growth agenda, the NSE will continue to engage other regulators, market operators, investors and other stakeholders towards delivering a culture of service excellence, intimate knowledge of clients, innovative products and world class market infrastructure,” he concluded.



ShareTweetSendShareShare

Related News

Lagos
Business

Ridding Lagos of identified distressed buildings

March 28, 2023
Estate Building fmbn Housing bedroom Estate
Business

Experts to FG: Strengthen housing institution for better performance

March 28, 2023
Water Bill WaterAid
Business

WaterAid tasks Lagos govt on clean water, sanitation services

March 28, 2023

Discussion about this post

Most Read

  • From 100 level, I laboured not to get a B in any course  —Enoch Akinleye, best graduating student, Faculty of Life Sciences, UNILORIN
    From 100 level, I laboured not to get a B in any course —Enoch Akinleye, best graduating student, Faculty of Life Sciences, UNILORIN
  • Ekweremadu, Igbo curse and crime of passion
    Ekweremadu, Igbo curse and crime of passion
  • Fani-Kayode: 10 names on our visa ban watchlist — UK
    Fani-Kayode: 10 names on our visa ban watchlist — UK
  • PDP suspends National Chairman, Ayu
    PDP suspends National Chairman, Ayu
  • FACT CHECK: Is it true Peter Obi's lawyer, Dr Ikpeazu has never lost a case before?
    FACT CHECK: Is it true Peter Obi's lawyer, Dr Ikpeazu has never lost a case before?
  • Afenifere tackles Iwuanyanwu over comment on Yoruba leaders
    Afenifere tackles Iwuanyanwu over comment on Yoruba leaders
  • FG places security forces on red alert
    FG places security forces on red alert
  • Rumoured Obasanjo's Igbo lineage may be true — Fani-Kayode 
    Rumoured Obasanjo's Igbo lineage may be true — Fani-Kayode 
  • Pastor shuts down church after winning N100m sports bet
    Pastor shuts down church after winning N100m sports bet
  • Enough is enough, Tinubu tells aggrieved presidential candidates
    Enough is enough, Tinubu tells aggrieved presidential candidates

Subscribe to e-Paper

E-Vending, e paper, pdf, e-paper, Tribune

Frontpage Today

EDITORIAL

Editorial
Opinion
Letters

BUSINESS

Capital Market
Money Market
Economy

ENTERTAINMENT

Friday Treat
Entertainment
Razzmattaz

REGIONS

South West
Niger Delta
Arewa

RELIGION

Tribune Church
Church News
Muslim Sermon
Eye of Islam
Islamic News
COLUMNS

Anike's Diary
Aplomb
Ask The Doctor
Autoclinic With The Mechanic
Awo's Thought
Borderless
Crucial Moment
Empowered For Life
Festus Adebayo's Flickers
Financewise
Gibbers
Intimacy
Language & Style
Leaders' Forum
Leadership & Management
Lynx Eye
Monday Lines
Mum & Child
Natural Health
Notes from Atlanta with Farooq Kperogi
On The Lord's Day
PENtagon
Political Panorama
Veritatem With Obadiah Mailafia
Voice of Courage
Whatsapp Conversation
You and Eye
Your Life Counts

WOMEN

Xquisite
Xquisite Food
Xquisite Style
Wondrous World of Women

MORE

Business Coach
Education
Event Digest
Crime & Court
Do It Yourself
Ecoscope
Property & Environment
Energy
Maritime
Aviation
Brands & Marketing
Agriculture
Info Tech
Labour
Leadership & Management
Achievers
Arewa Live
Arts & Culture
Arts & Reviews
Campus Beat
Politics
Health News
  • About Us
  • Contact us
  • Disclaimer
  • Privacy
  • Tribune Advertisement Rates

© 2023 Tribune Online, an online publication of African Newspapers of Nigeria Plc. All Rights Reserved.

No Result
View All Result
  • Home
  • #NigeriaElections2023
  • News
  • Columns
  • Editorial
  • Entertainment
  • Politics
  • Health
  • Sports
  • Opinions

© 2023 Tribune Online, an online publication of African Newspapers of Nigeria Plc. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist