Nigeria has began construction of a new shopping mall in Abuja. The US$68m mall project is expected to open during the third quarter of 2017.
The mall will be erected on an approximately 25, 000m2. The project has been developed by Novare Real Estate Africa.The project will be executed in phases and the first phase will lie on a 15, 278m2.
According to Alhaji Mohammed Bello, the Nigerian Minister of Federal Capital Territory (FCT), his administration will give all the support that is needed to make projects like Novare Gateway successful as they serve citizens, through creating employment opportunities and generate multiplier economic activities.
However, the Novare Gateway mall project has joined forces with the Abuja Chamber of Commerce to execute the project by leveraging on local information, local content and local expertise.
Jan van Zyl, the property development head for Novare Real Estate Africa described the project as the modern infrastructure and facilities perfectly designed and situated to meet the needs of the growing Abuja community.
The latest PWC African Retail report reveals that, Abuja is set to experience a growth rate of 171% in terms of its population size up to 2030 – one of the highest figures on the continent. The centre is located on the main 10-lane highway between Abuja’s Nnamdi Azikiwe International Airport and the central business district. When the mall opens, Shoprite will be anchoring the mall.
However, the Novare Real Estate Africa portfolio includes other malls in Abuja such as the Novare Apo mall on a 867m2 located approximately 18 km away from Novare Gateway to the south-east of Abuja. In the north, the 12,508m2 Novare Central, a mixed use centre consisting of retail space while grade- A offices, are still in progress. In Lagos, the 22, 000m2 Novare Lekki mall, which is expected to commence trading in the middle of 2016.
Meanwhile, Nigeria’s property market appears to have defiled all known predictions. Prior to 2016, experts in the industry had earlier predicted that the year will provide investors the opportunity to acquire property at the best low prices.
Nonetheless, with the emergence of a new administration, the industry is expecting to witness large volume of activities, even as experts predicted high returns on investments in this fiscal year. Apparently, the industry appears to be witnessing low returns on investments as the sector is in serious lull. For the last 10 months, the nation’s real estate market is dwindling, after the inauguration of this administration.
According to the market experts, there is hope for the sector to experience proliferation of markets as several properties will be up for grab, thus making properties prices to crash, as much cash will be available for few properties. On the other side investors say there is no money to buy property, lamenting of low cash flow.