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Increase Demand For Prime Office Space Increases Rents By 17%

There are revealation that increased demand for prime office space from international investors comprising mostly insurance companies and property fund managers seeking entry into Nigeria’s commercial real estate market has increased rents in exclusive locations such as Ikoyi by about 17 percent in the past six months.

According to the Q2 2014 office space market report by Broll Nigeria, similar to the previous quarter, demand has also been driven by growth within the oil & gas and technology sectors as companies previously in incubator and host spaces now look set to expand into their own modern and comfy offices.

An earlier report by Broll shows Nigeria as the most expensive office space market in Sub-Saharan Africa with an average monthly rent of $70 per square metre against Ghana’s $37, Rwanda and Namibia’s $20 and $18 respectively and Mauritius and Madagascar’s $26 apiece.

According to the new report, Ikoyi, which had been exclusively residential, has seen a rise in multiple mixed use and commercial developments projecting the neighbourhood as a future up-market mixed use hub, as yearly rents for the few available spaces have increased to about $1,000 per square metre, representing 17 percent rise from $850/sqm in Q4 2013.

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