Investors in Nigeria’s property market are set to make major gains as the country’s office market becomes more environmentally aware and transparent.
According to Frank Okosun, Partner at real estate firm, Knight Frank Nigeria, “the new trend in Nigeria’s commercial real estate market is to be green and transparent.”
Knight Frank Nigeria has discovered that developers, investors and practitioners are more willing than ever before to share transaction details and operate more transparently.
In fact, most prime office developments that have been delivered in recent years or expected to come on stream are going green. Just ten years ago it would be like needle in a haystack to obtain a transaction rent or sale price, lease terms or even just basic details of transacting parties.
“Today, much of this is publicised freely on websites and in industry reports,” Okosun explained in a recent address.
“The rationale is clear, the more transparent a market is, the more investors and developers will understand its dynamics and the more likely they are to invest and develop in the space,” he added.
The Global Real Estate Transparency Index, an industry report which has been published biannually since 2010, ranks countries by the level of transparency of its real estate markets. Countries such as Australia, Canada, the UK, and the US have led the charts as the most transparent markets while African and Asian countries – except South Africa, currently 21st – have lagged behind. Nigeria debuted at 96 out of 97 countries in 2012, improved to 86 in 2014 before jumping up the rankings to 67 in 2018.
“To put this in perspective, in only six years Nigeria has moved about 30 spots from being the second most opaque country measured to the 67th most transparent of 195 countries in the world. Similarly progressive is the focus on energy efficiency in recent real estate developments. A case in point is the Nestoil Tower, which includes almost 10,000 square meters of office space and adjoining residential apartments,” said Okosun.
The project was delivered in 2017 and attained the Leadership in Energy and Environmental Design (LEED) Silver certification for energy efficiency.
LEED is an internationally-recognized green building certification system. The unique form and design of the building are quickly earning it an iconic status on the Lagos landscape, especially at night with its eye-catching lighting.
Okosun notes that several other projects have also attained energy efficiency certifications such as Heritage Place and Cornerstone Tower.
“This is very much welcomed consciousness for energy management and environmental friendliness will go a long way to influencing more desirable commercial real estate spaces, reducing occupation costs while being friendly to the environment in years to come,” he concluded.