Real Estate in Emerging Markets: A Global
Perspective and Focus on Nigeria
Firstly, its great to be back! I never stopped writing, but
my focus shifted in the past few months to other media but now I’m back (I
hope!)
I’ll be sharing a few thoughts on Real Estate. The facts
(and viewpoints) presented here are excerpts from a formal presentation I made
at a strategic forum in preceding weeks.
I should charge a substantial fee for this information, but
I’ve chosen to be magnanimous in the hope that you would also share valuable
insight with me when you’ve got one.
Why Real Estate?
It’s real (of course it is!)
It is transferable (unlike your job)
It’s in limited supply (even if you reclaim all red and blue
oceans)
It underscores all human activity (except you live
permanently in the air).
Emerging Markets…are nations with social or business
activity in the
process of rapid growth and industrialization. (The
nations in blue are broadly classified as emerging markets. Nigeria
Investing in Nigeria is plain straight blue ocean strategy if you ask me.
Investing in Nigeria is plain straight blue ocean strategy if you ask me.
The charts below are quite instructive. In one sentence, global economic power bases are shifting. Remember all business is done on land, so now’s the time to tactically take positions.
By 2050, Goldman forecasts that
G-20 Developing Nations…(which
includes Nigeria
ü Account
for 60% of World Population
ü 70%
of the world’s farmers
ü 26%
of the world’s Agric Exports
Wait a minute! They have 70% of the world’s farmers, but
only account for 26% of exports. I know the culprits! They are called subsidies
and mechanized farming. That’s why WTO (World Trade Organization) talks always
end in deadlock. There’s an opportunity there still. Real Estate (arable land)
will play a key role for Africa ’s new farmers.
Next Eleven (N-11)
This is another group of nations who consider themselves as
having…
ü
Potential largest economies in the 21st
Century
ü
Promising outlook for investments and trade
ü
Macroeconomic stability and Political
maturity
What are the Facts and Implications of this Economic Shift
in Emerging Markets?
ü
Rapid industrialization
ü
Rural-Urban migration
ü
Increased Internal Capacity
ü
Inflow of FDI (Foreign Direct Investments)
ü
Emergence of vibrant middle class
ü
Increase in local demand
ü
Increase in Remittances
ü
Expanded Manufacturing and Agric industries
ü
Foreign investment
ü
Innovative / robust financing
ü
Global partnerships
Focus on Nigeria
Here are a few stats for you to think about….and take
action!
Population
|
170m (World No 7)
|
Land Area
|
910,768 sq km
|
Natural Resources
|
Gas, Petroleum,
|
33.02%
|
|
Ethnic Diversity
|
> 250 groups
|
Population growth rate
|
2.553% (4m annually)
|
Urbanization
|
50% (at 3.5% per yr)
|
2011 GDP
|
$414.5 Billion (6.9% growth)
|
FDI in 2011;
Remittances
|
$75.6 Billion
$11billion in 2011
|
Population
|
17m in 2006 (24m forecast by 2015 – 3rd in the World)
|
Land Area
|
1000 sq km
|
Industry
|
> 2000
|
Investments
|
60% of Federation’s Industrial Investments
|
Population growth rate
|
600,000 per annum
|
Population Density
|
4193 persons per SqKm
|
Density of Built Up areas
|
1 person per 50 Sqm
|
Sample Valuations in
Let's start with Eko Atlantic
1sqm ranges from $865 to $1600
$1.6m (per 4-bed en-suite apartment)
|
|
V.I.
|
400m for 1500sqm at Saka Jojo
|
Lekki Phase 1
|
150m
|
Dolphin Estate
|
18m for 3-Bed Flat
|
Yaba
|
15m for a plot
|
Magboro
|
3m for ½ Plot (behind bedmate factory)
|
With these few thoughts of mine, I believe you would make
significant effort to strategically take well thought out positions.
If you are interested in my
governing Real Estate investments, kindly send an email to trinitechnologies@yahoo.com
governing Real Estate investments, kindly send an email to trinitechnologies@yahoo.com
To my Real Estate
Consultant/Agent friends, I leave you with a few Strategic Selling
Fundamentals:
ü
Know your product
ü
Portray your product
ü
Believe in your product
ü
Know the market
ü
Connect with your customers
ü
Close the sale
ü
Serve your customers
ü
Deliver your promise
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