The demolition of the Landmark Beach front located in Lagos is causing some of businesses to consider downscaling their investment plans in Nigeria or relocate to other jurisdictions, a new report has stated. Titled: “Nigeria Real Estate Market Review H1 2024” published by the Northcourt, the report stated that high inflation rates were increasing construction costs, posing challenge to project viability and reducing the development of new real estate projects.

The report said: “The Paul Onwuanibe-led Landmark Group received notification from the government that the Landmark Beach resort was slated for removal due to its proximity to the proposed Lagos-Calabar 700km coastal highway.“The Landmark centre, estimated at $200 million contributes much in tax revenue – with some estimates at $1.5 million.

“The demolition of the Landmark Beach front raised concerns among investors. Some considered downscaling their investment plans, others have reallocated investments to other jurisdictions on the African continent. ”The report also stated that the demolition of the Landmark’s property has caused Nigeria’s reputation for policy inconsistency and inadequate stakeholder consultation.

“Landmark still advocates for a reconsideration of the highway route to minimise adverse effects on local businesses and the environment. Analysts reiterate the importance of sustainable urban development in the planning and establishment of eco-friendly urban settlements,” it added.According to the report, high inflation rates (officially 33.95 per in May) have led to a decline in consumer purchasing power, directly influencing the real estate market.

“Inflation has increased construction costs, challenging project viability and reducing new developments,” it stressed. The report stated that construction costs spiked by over 78 per cent YoY, while rents are on the rise across low income areas, reinvigorating the calls for affordable housing.

According to the report, Nigeria’s real estate market has been impacted by steep and unfavourable movements in foreign exchange rates and inflation, posing challenges for developers and investors. “This has hindered developers’ ability to import construction materials and equipment. Project timelines have been delayed, and construction costs have surged,” it stated.

It, however, underscored government’s intervention to the end that construction costs are lowered, tax rebates for construction companies, and support for the local production of building materials. Commenting on the report, the Chief Executive Officer of Northcourt, Mr. Ayo Ibaru, noted that the real estate sector contributed 5.20 per cent to Nigeria’s Gross Domestic Product (GDP) in Q1 2024, lower than the 5.31 per cent it contributed in Q1 2023.

Ibaru said: “Poor economic performance has contributed to unfavourable business conditions and has led to a decline in Foreign Direct Investment (FDI) in Nigeria, limiting the availability of capital for real estate and construction projects. There have also been political gaffes,” stressing that “population growth continues to drive the demand for residential real estate, particularly in mid-market areas. ”He added: “The growing demand for affordable housing and sustainable building practices has led to a continual mismatch between supply and demand. ”He, however, projected that the real estate market in Nigeria could grow by 7.24 per cent and might reach a total estimated value of $2.14 trillion by the end of 2024.

According to him: “residential real estate holds the largest share, with an estimated market volume of $1.77 trillion by EoY 2024.”

Even though that it has been reported by The Economist that 70 per cent of the buildings required by 2040 are yet to be constructed, the Northcourt’s report noted that the Nigerian real estate sector is faced with challenges such as obtaining long term financing on friendly terms.

It added: “There are ownership complications stemming from the application of the Land Use Act of 1978. This is yet to be reviewed. This makes financing difficult.

“Limited mortgage availability due to high rates and lack of collateral means only a minute percentage of the population can access mortgages.

“Cooperative societies seem to be making some progress in raising fund for housing – if only for their members. Little drops of water take quite a while to become an ocean. Large-scale housing developments are largely between planning and early execution stages.”

Islie:



https://www.thisdaylive.com/index.php/2024/08/26/report-demolition-of-landmark-beach-forcing-investors-to-relocate-to-other-jurisdictions-in-africa/

Nlfpmod

DeLaRue:


The 'beach' is the land immediately adjourning the ocean. That belongs to the Federal government.

Landmark building is what Landmark owns, and that was not destroyed in any way.

If you build a swimming pool on the beach that belongs to federal government and the federal government needs its land to build a public infrastructure, what do you expect the federal government to do.

kettykings:


The federal government is very very lucky that landmark is owned by a Nigerian and not a Chinese otherwise very key government properties overseas would have been used to compensate landmark.

DeLaRue:


The 'beach' is the land immediately adjourning the ocean. That belongs to the Federal government.

Landmark building is what Landmark owns, and that was not destroyed in any way.

If you build a swimming pool on the beach that belongs to federal government (like Landmark did) and the federal government needs its land to build a public infrastructure, what do you expect the federal government to do.

The claim in this article that federal government destroyed Landmark's business is clearly untrue. The Landmark building and business is still there.

If the government destroyed Landmark's lawful business, the man would have gone to court. But he hasn't because he can't because he will lose.

mrvitalis:

The land mtn data cable are on are not federal government land abi?

The truth is most of you APC guys from Tinubu to the road side supporter don't understand basic developmental economics at all

Reason you guys keep wondering why the economy keep tanking yet every sensible person know its APC actions

You can't protect a 200 million dollars building by diverting the road or starting it 2 km forward

But u can do that for mere MTN data cables that can be easily moved... Make it make sense

LifestyleTonite:


200 million dollars? Are you dreaming?

Mind you, the so-called 200 million dollars building is still standing today. So I wonder which one you claim was demolished.

What was demolished was the swimming pool built by Landmark on the beach which is a land owned by the Federal Government.

Be informed that neither Landmark building nor MTN cables were moved.

mrvitalis:

Landmark selling point was the beach... He won't build that thing there is there was no beach you killed the beach so what do you expect?

Is it that you are pretending or you don't know jack about business?

mrvitalis:

Landmark selling point was the beach... He won't build that thing there is there was no beach you killed the beach so what do you expect?

Is it that you are pretending or you don't know jack about business?

Jogs1900:
Our beach is not for sale.. Landmark should go and sit down.

LifestyleTonite:


So because a man who built his swimming pool on my land is making money, I should look the other way and let him continue even when I need my land. This your claim is only exhibited by someone with fraudulent mind. Same way we should leave a fake drink manufacturer simply because he's making profit to the detriment of unsuspecting people.

Landmark ought to be sued for building on federal government property without permission.

Mynd44:

When he bought the Land, he didn't buy the beach.

Landmark used to be an event centre before he started illegally developing on government land. He knows what he is doing.

When Landmark started business, the back was fined off and there was no access to the beach so what are you about?

mrvitalis:

He bought it for the beach
The original route of that road was behind the landmark and the beach

Mynd44:

The only place behind the beach is the ocean.

And how do you buy land from the logos state government and expect it to include the beach. Do you know what you are saying?

mrvitalis:

That depends on your angle of observation oga

It's basic logic

Mynd44:

Explain the image I attached. You can clearly see that the original people with license there is Eli Atlantic city.

He illegally built what he built and he knows it

Please see the image and explain where his access to the beach was

mrvitalis:

When was eko Atlantic designed, n when did he buy the land

mrvitalis:

But u did it for MTN

LifestyleTonite:


What value does swimming pool bring to the nation compared to MTN?

Dump your emotions and embrace facts.

Mynd44:


Eko Atlantic: Planned in 2003

Landmark event centre: bought a piece of land in 2007. No beach included

mrvitalis:

You obviously don't know jack about business

Permanent pool n space that welcome 30,000 weekly... Creates over 2000 jobs is wearing u are comparing to MTN wire that can be moved

LifestyleTonite:


Where is the source to back up your figures? You probably pulled them from tin air to make Landmark seem like a big player.

Do you know the amount of businesses that will be disrupted during the period the MTN cables will be relocated? That signifies value, not a value that only benefits one-man.