Lagos, Nigeria - Nigeria's property market has been rated the most expensive in sub-Saharan Africa, particularly in the office space segment of the market, according to a report prepared by a private firm, Broll Property Services.
The Private BusinessDay newspaper Tuesday quoted the firm as saying compared to Ghana’s US$37 monthly payment for a square metre in a Grade A office space and US$26 apiece in Mauritius and Madagascar for the same period, a square metre in Grade A office space in the commercial city of Lagos or the southern city of Port Harcourt goes for as high as US$70 a month, making it 100% higher.
The report said despite the availability of prime properties in major cities like Lagos and Abuja, the needs of some international tenants seeking befitting office spaces are yet to be met.
This has led to an increase in the rents of the available spaces as demand for same outstrips supply.
“Despite the springing up of several A-grade structures in recent times such as Maersk House, Churchgate II Towers, Eko Towers, FF Towers, and Mansard Place all located on Victoria Island axis of Lagos, rentals for these developments have remained relatively high with yearly rents ranging between US$600 and US$850 per square metre,” the report said.
It said that in Rwanda and Namibia, the rents are us$20 and us$18 per square metre respectively, while it is between US$15 and US$19 in Kenya within the same period.
In Malawi, rent per square metre ranges between US$13 and US$6 monthly, while Zimbabwe’s paltry US$11 per square metre has been attributed to poor economic climate as most office spaces in major cities remain vacant.
Meanwhile, the report has projected that the global office market will witness a steady growth in 2014, as companies globally demand for a conducive workplace that improves productivity and workplace satisfaction which are rare in old office stock.
Market observers believe the growth will also be visible in Nigeria’s commercial space, with the delivery of major projects such as the Kanti Towers in Victoria Island, while work has intensified on the 15-floor Civic Centre Towers also in Victoria Island, Lagos.