A strong supply pipeline of Residential and Commercial properties across major Nigerian cities could stir a market boom for Facility Management (FM) professionals and companies operating in Nigeria’s Real Estate space.
The FM industry which thrives on the success of the Real Estate sector have seen its significant growth in recent time slowdown, as the property market continues to struggle to rebound despite the country exiting a 15 month old economic recession in Q2, 2017.
In addition to the sluggish nature of the property market, organizations have remained cautious to increase their outsourcing spend on business support services, while Corporate tenants are reluctant to expand their Real asset portfolio as the country nears election year – hence, the current squeeze in the FM market.
However, with a host of residential and commercial projects set for delivery latest by Q4, 2019, Analysts predict light at the end of the tunnel for service providers in the FM industry.
A recent news report by New Telegraph revealed that a total of nine shopping malls located in different parts of the country are currently in the pipeline and should all be ready for delivery by Q4 2019. The upcoming malls are; Benin mall in Edo state; Capital and Novare malls in Abuja; Silver Valley mall in Port Harcourt; Royal Gardens, Twins Lake, Victoria Plaza, Westfield and Lennox malls all in Lagos.
A close look at the residential market shows a similar trend as developers continue in their effort to meet the delivery deadline of major projects. Some of the major estates expected for delivery latest by Q4 2019 are; Kuramo Beach Residence – a 16 floor residential project housing 140 residential apartments next to the prestigious Eko Hotel, Victoria Island.
The market is also anticipating the delivery of arguably Nigeria’s tallest residential tower – No. 4 Bourdillion. Other residential estates in the pipeline are; The Belmonte Prive, Ikoyi, The Sphere, Victoria Island and Bromley Court, Abuja.
On the commercial front, Estate Intel – an online Real Estate research and News publication platform listed the quadruplet of Kingsway Tower, 12-floor Cornerstone Headquarters Office development, 18-floor Dangote Industries Limited Headquarter and 19-floor Famfa Oil Tower as the most prominent commercial buildings set to hit the Lagos Office space market in the near future.
Market watchers are optimistic that the delivery of these projects will berth a new dawn for FMs who have had to contend with high vacancy rate, delay in payment of service charge and client’s request to review contract cost and scope downwards in recent time, despite the country exiting recession.
“Given the increasing prominence of our role in the Real Estate scene, it is expected that the delivery of these projects will stir some activity in the Property market which should dovetail into the FM sub-sector” Engr. Femi Akintunde said while responding to questions on the above subject.
Akintunde however, explained that despite the slow pace of business activity in the Real Estate sector, FMs have continued play a vital role in ensuring the functionality and sustainability of Real Estate assets through innovative approach such as technology – which delivers superior service to clients.
Analysts say the laggard nature of the Real Estate sector is responsible for its slow recovery pace even after the country exited recession over 18months ago.