Nigeria CRE Location Pricing and Investment Attractiveness
In commercial real estate transaction, no question is more important than: "How much does it cost? And how profitable is the investment."
The profitability of commercial real estate investment depends on the location and investment attractiveness, together with the quality of right to streams of income, value preservation and capital appreciation. The risk taking and decision making become more meaningful if there is deep understanding of pricing location factors (geographical and socio-economic environments).
A good location is largely influenced by factors like infrastructure, nature and type of real estate, well-developed industries, vibrant real estate market, distribution networks, quality and qualified workforce, transport access, asset operation performance and market fundamentals, investment attractiveness, amongst others.
Since real estate is heterogeneous in nature and domiciled in an imperfect market, investment in such environments requires unfettered access to right information about location pricing and investment attractiveness, and the decision to invest in the real estate market should be accompanied with not just an investigation about the financials, but with location-by-location pricing and investment attractiveness data.
The analysis of commercial real estate transactions (historical and recently sold) data and market value are essential guides in making the right decision in a market like ours.
Are you thinking of
investing in the commercial real estate market in Nigeria? Talk to us at akinABRAHAM & ASSOCIATES +2348068774629, aabraham@akaa-ng.com.
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