“For instance, the completion of Centrepoint (Famfa Towers) and Trinity Towers, located in Ikoyi and Victoria Island, respectively, have together added 30,000 sqm of new office space to the Lagos office market. Consequently, tenants remain firmly in the driving seat when it comes to lease negotiations. Monthly prime office rents have held steady for the third quarter in a row at c.US$ 50 psm,” it noted.

It added that disruptive economic policies, and currency demonetisation in 2023 contributed to weakened growth in retail real estate development in Nigeria.

The report stated that the continuous rise in inflation in the country, which climbed to a 15-year high of 33.2 per cent in March, had curbed consumer spending and retail footfall.

“Over the past 12 months, some prominent retailers, such as South Africa’s Mr Price and Shoprite, have exited the market, citing macroeconomic volatility, the depreciation of the naira, and weakened consumer purchasing power.

“In the wake of their departure, retail developers have turned their attention to expanding small-scale neighbourhood malls to drive growth and footfall,” it indicated.

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