94% of Africa's real estate markets are classified as low transparency or opaque, according to JLL's most recent Global Real Estate Transparency Index. Measured against indices like market performance, regulatory and legal risks, transaction and processes etc, the relative lack of data has far reaching consequences on Africa’s real estate markets. One of which is low institutional investment interest driven by higher risk perceptions.
On one hand, opaque markets attract less foreign investment, because investors cannot underwrite risk they cannot assess or price objectively. On the other hand, without reliable market data, local institutional players misread demand, pricing and positioning, which ultimately lead to misallocation of capital. Today, African real estate institutions including developers, project sponsors and real estate services companies are leveraging our insight to objectively assess new projects, find off-market deals, partners and ultimately inform strategic decisions.
We track real estate market data, to help our clients and partners de-risk decisions across these four services.
Bespoke Market Reports
Our bespoke market reports help investors, developers and project promoters objectively assess demand before committing capital into any venture. Depending on the type or scale of the project, our research typically helps project promoters stress-test project assumptions against micro and sector specific market data. This includes market sizing, city level market analysis and financial feasibility study to inform the viability of project ideas. We also conduct surveys and focused group sessions designed to uncover end user preferences and specific market gaps so projects are designed and delivered to meet those needs.
Here are some of the ways we help our clients and partners:
- Market and sector analysis
- Feasibility and financial models
- Survey and focus group research
- Off-takers and investors
Read case studies of some of the clients we have worked with.
Deal Pipeline Intelligence
Real estate, construction service providers including design and build firms are leveraging our local market insight to find off-market deals and build an intelligent deal flow engine. We track market activities including construction and occupier activities to provide our clients intel on off-the market deals and opportunities including dataset of conceptual, under-construction and completed projects. We also provide our partners with deal intel on confirmed lease expiries and relocation activity which allows service providers and developers to position ahead of demand.
Some of the ways we help our clients and partners:
- Project tracking including conceptual, ongoing and completed projects
- Joint venture deals and off-market acquisitions and other opportunities
- Sales deal pipeline development and decision-maker access
Read case studies of some of the clients we have worked with.
Off-takers and partners
We help our clients reduce execution risk by leveraging our local network of real estate operators, service providers, financiers and regulators to bring their projects to live. Our network spans key African markets, with capital partners representing 45% of network composition and operators a further 30%. Our institutional partners leverage this network to execute and deliver on their local projects. Some of the ways we help our clients and partners:
- Capital partner identification
- Service provider and asset manager access
- Public sector facilitation
- Joint venture partner sourcing
Read case studies of some of the clients we have worked with.
If you are working on a real estate project or initiative within the African market, reach out to our team at advisory@fortrenandcompany.com or find out more at www.fortrenandcompany.com.
With just 3,577square meters in land mass, Lagos is home to over 17 million residents, making it one of the most densely populated cities in the world. One of the most pronounced effects of clear overpopulation in overcrowded cities like Lagos is the increase in informal settlements, land grabbing, and illegal construction. Internal data from the Lagos State government shows that more than 349 buildings have been erected illegally and do not comply with the planning laws set out by the state. In response, the Lagos State Building Control Agency (LASBCA) and the Ministry of Physical Planning and Urban Development have intensified enforcement of planning laws to ensure that buildings within Lagos State are designed, constructed, and maintained to a high standard of safety. Their enforcement efforts have led to numerous building demolitions and are primarily targeted at three recurring violations across the state, which we will be discussing below.
- Lack of building development permit:
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Failure to obtain required development permits remains one of the most common triggers for demolition across Lagos. Under Section 27(1) of the Lagos State Urban and Regional Planning and Development Law, no building is allowed to be erected across the state, except when necessary permits and approvals have been duly sought and obtained. “No person shall carry out any development in Lagos State without obtaining a permit from the relevant planning authority.” Non-compliance with section 27(1) of the Lagos State Urban and Regional Planning and Development Law authorises the state government to demolish any building that has not sought and obtained the necessary approvals. Despite this clear guideline, unauthorised construction continues to proliferate in the state. In a recent enforcement action, 13 illegal buildingswere demolished in Lagos for non-compliance, highlighting the Government’s resolve to clamp down on developments that violate planning regulations. Several factors may explain why some developers bypass the approval process, including a lack of awareness of regulatory requirements, the perceived complexity or delay in obtaining permits, and, in some cases, a calculated risk to evade official fees or oversight. While these issues don’t justify non-compliance, they underscore the need for continued public education, transparency, and reform of the permitting process.
- Encroachment on Drainage Channels and Setbacks:
Building on drainage channels and designated setbacks stands out as one of the leading causes of demolition across Lagos. This issue not only breaches planning regulations but has also contributed to environmental and public safety risks.The Lagos State Building Control Agency(LASBCA) mandates a minimum setback of nine (9) meters for residential buildings in high-density, flood-prone zonessuch as Victoria Island, Apapa, and the Lekki Peninsula Schemes I and II. Despite these regulations, many developers have reclaimed and erected structures directly on waterways, obstructing water flow and increasing the risk of flooding. Recently, the Lagos state government marked 39 buildingsfor demolition in the Eti-Osa Local Government Area (mostly along the Ikota corridor) for obstructing drainage channels and encroaching.Similar actions have been taken in other areas like Amuwo Odofin. These demolitions have left many homeowners devastated. In response, affected owners have petitioned the government through their community associations, while others seek court injunctions to challenge the demolition or delay it pending clarification of their land status. Urban experts, however, emphasise the need for property buyers to secure proper planning permits from the Lagos StatePhysical Planning Permit Authority(LASPPPA) before embarking on any building or development project within the state.In many cases, properties built on canals, drainage channels, or government-designated right-of-way have little to no legal standing, making it difficult for affected owners to obtain compensation or favourable rulings in court. This is because such developments typically contravene established planning laws and are considered public safety hazards. We love your feedback. Let us know what you think about this article or your experience renting in Africa by sending an email toadvisory@fortrenandcompany.com. You can also join the conversation here onLinkedIn.
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