According to a half year report on the performance of the real estate market by Business Day, Nigeria’s biggest malls are sitting half empty, as they are still suffering from the impact of the country’s first recession. Rising unemployment and inflation rates have shown in significant decline in footfalls in the big malls, leading to high vacancy rates.
If you’re into retail, you should find this report useful:
- Big malls in the three major cities of the country, including; Lagos, Abuja and Port Harcourt, were the hardest hit by the economic recession.
- Novare Lekki Mall, a 22,000 square metre retail facility has a 57 percent vacancy rate as at June 2017, slightly reduced from the 63 percent figure recorded in December 2016.
- This is followed closely by Jabbi Lake Mall in Abuja, whose vacancy rate by the first half of this year was estimated at 56 percent.
- Vacancy rates in Port Harcourt malls averaged almost 10 percent, as the three malls in the city, namely Big Treat, Genesis Centre and Port Harcourt Mall, recorded 14 percent, 6 percent and 8 percent vacancy rates respectively.
- In Lagos, however, while Apapa Mall, Circle Mall and Silverbird Mall have also taken hits, with vacancy rates at 35 percent, 27 percent and 31 percent respectively, The Palms has continued its no vacancy rate, with a client-friendly pricing.
- Data shows that financial transaction volumes fell in July, with Point of sale transactions dropping by 3.60 percent, while transactions by cheque fell 9.97 percent and transfers by NEFT fell 3.96 percent for the month.
- Household Final Consumption Expenditure, which consists of expenditure, including imputed expenditure, incurred by resident households on individual consumption goods and services has been falling since 2015.
- According to the latest GDP by expenditure report for Q3, 2016, released in June by the National Bureau of Statistics, in the third quarter of 2016, real year on year growth in household consumption deteriorated, from a (revised) decline of -0.7%, to a decline of -2.0%.
The report further revealed that retail market in Nigeria has witnessed a revolution driven by the economic boom which raised the purchasing power of the average Nigerian, along with a change in the shopping culture of the emerging middle class who express aspirational lifestyles in their taste for fashion and quality goods. The economic recession has however changed the narrative in such a way that, according to Femi Akintunde, “people now go to malls for window-shopping and sight-seeing; you now see people eating pop-corn with soft drinks, walking about the mall without buying anything extra”.
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