Property development overview
The Federal Capital Territory (FCT) Abuja will continue to be one of Nigeria’s property hotspots in 2020, thanks to several major construction projects.
As the political and governmental heart of the country, It is one of the most prominent capital cities in Africa. Being one of the two primary international business gateways into Nigeria, along with Lagos, the metropolis also has a global reach.
These two factors have contributed to Abuja receiving significant local and foreign investment over the years: often in the form of joint ventures. Together with a strong demand for a variety of property, this investment has allowed it to develop a burgeoning real estate industry.
Other things the city has going for it include good infrastructure, adequate security, encouraging business environment and a large number of high net worth individuals. A variety of residential, commercial, industrial, retail and mixed use developments are currently in progress. These developments will positively impact Abuja’s economic growth for 2020.
In 2018 & 2019 the capital witnessed the construction of a number of transport related infrastructure projects including the opening of the first phase of the light railway project and the completion of a new international terminal at the Nnamdi Azikiwe International Airport. 2018 also saw the opening of the $54 million Novare Central shopping mall in the Wuse district.
Ongoing construction projects
The $18.5 billion ‘Centenary City’ project, aims to build a new smart city in the FCT. It is to be built from scratch on land located a few km from the Nnamdi Azikiwe Airport. The Kuje area is also nearby.
The master plan calls for a urban centre, a central business district, museums, art galleries, hotels, commercial space and residential districts.
Centenary City aims to offer a magnificent cosmopolitan lifestyle to its residents and act as a hub for the FCT as a whole. The project is a private sector driven PPP initiative. The entire area has been designated a free zone: being exempt from various local and federal taxes.
The chief residential project namely: ‘The Grove’ has been launched. It spans an area of 91,000sqm consisting of over 200 units of 5 bedroom houses. Front Range a UAE based developer and the Centenary City PLC are co-developers of the Grove project.
World Trade Center
The ‘World Trade Center’ (WTC) Abuja is being developed by the Churchgate Group and aims to define the capital’s skyline. The master plan calls for a complex of high-rise buildings to be built in the Central Area district of the FCT. Upon completion it will become one of the largest mixed use developments in West Africa.
Towers one and two have both been completed. Tower one, at 110 metres, serves as the tallest residential building in Nigeria. Tower one offers 120 luxury apartments spread over 24 floors. The second tower, at 120 metres high, is the tallest commercial building in Abuja. Tower two offers 33,000sqm of total office space to let. The remaining towers are at different stages of completion.
As part of the overall project both a world class shopping centre called ‘Capital Mall’ and a luxury 5-star hotel have been planned. The WTC is located very close to the recently commissioned metro station which links directly to the international airport. The project is mainly privately funded.
Abuja City Centre
The ‘Abuja City Centre’ project is a public private partnership between the FCT Administration and a consortium of developers that seeks to develop prime land in the Central Area district. The city centre has been provisioned for since the Abuja master plan.
The project is a mixed used development involving constructing residential apartments, commercial offices, a shopping mall, a national park and all the commercial buildings to be found in any modern metropolis including parking lots.
The project aims to develop 24/7 commercial & residential activities in the heart of the city. It is expected that conclusion of the project will allow Abuja to better compete with other global capitals such as Dubai, Singapore, New York and London. Total investment is estimated at $4 billion dollars.
Outlook for real estate development in Abuja
Real estate plays a vital role in the city’s economy. It is: an enabler of business & economic activities, a major avenue for employment and is an attractive asset for investors. Accordingly further real estate development means further economic growth for Nigeria’s capital.
It is already ranked as one of the best cities to do business in Nigeria and is a favoured destination for foreign investment into the country. Efforts are being made, by the FCT administration, to better the business environment. This will help both foreign and local investors to further invest in Abuja’s real estate sector.
Upgrades to the city’s infrastructure and the expansion of various private public partnerships (PPP) also aim to fast track investment into this rapidly growing metropolis.
If you need real estate in Abuja or have any related questions, Villa Afrika can help. Simply get in touch: +234 708 500 8039.
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