Some foreign investors are showing confidence in the Nigerian economy as they scramble for the Ikoyi skyline with the development of six new prime grade office towers to be delivered in the next 24 months.
Nigeria, an economy dependent mainly on oil exports, has taken a hit from the more than 50 per cent fall in global crude prices, a situation that has led to cautious attitude from investors intending to invest in Africa’s largest economy.
However, high end real estate developers, mostly foreign investors, are showing confidence in the economy with the development of six new prime grade office towers standing on a minimum of 13 floors.
The towers are estimated to cost $50 mil- lion, industry analysts say the investment does not only reaffirm the developers confidence on the Nigerian property market in particular and the economy generally, but could also turn out to be rewarding ventures given their delivery time.
Analysts have predicted that the country’s present economic woes would be over in the next 18 months with the likely rebound of oil prices which coincides with the delivery of these projects even as market watchers are optimistic that these ‘A’ grade office projects will be crucial in providing office space for returning investors and new entrants alike.
“There is nothing strange or particularly wonderful about what is happening in Ikoyi; what that simply tells you is that Kingsway Road is today the most desirable, most sought after office space address in Lagos”, Obi Nwogugu, Head, African Capital Alliance Prop- erty Investment Company said in an interview.