Enugu: Next Frontier for Real Estate Growth in Nigeria.
Enugu, Nigeria located at 6.4402 [latitude] and 7.4943 [longitude] has a population of approximately 6 million and a landmass of 12,727 square kilometers having served as the capital of the former Eastern Region and Old Anambra State presently has a total of 17 local government areas. Ethnically and linguistically, Enugu State is lgbo. English is also widely spoken as the second language. The state naturally divides into two cultural zones based on local dialectical and choreographic patterns. These are the Enugu and Nsukka Zones. The state has three important urban centres: Enugu, Nsukka and OjiRiver. Enugu is a modern city which covers an area of 85 sq. km with a population of about over 750,000 people.
Enugu has been known to be a developing coalmining, commercial, financial and industrial centre, with a booming economy and vast investment opportunities. The Central Bank of Nigeria has a branch in the town. It also has an airport and good communication facilities with modem telephone, telegraph, fax and postal services. The intracity road network is adequately diffused and there are many highways and a railway leading out to other states. As a town, Enugu has had a chequered political history. Starting from 1917 when it was officially declared a second class township; its political hinterland grew very fast and vast.
In terms of investment opportunities, Enugu is known for industrial and commercial development. It has a fully developed industrial infrastructure. The Emene industrial Estate remains the primate industrial site and there is concerted effort to establish industrial Estate in all the local government areas of the state. Enugu also has a good airport within the Emene industrial Area. There is adequate satellite telecommunications and excellent network of the federal and state highways. Presently, there are about 52 industries operating in the state, three of which are large scale and the rest belong to the small and medium scale category. ANAMMCO, the manufacturers of assorted and quality automobile products is one of the big three industries in Enugu state. There is also the project development Agency (PRADA) that fabricates and manufactures-wide range of components and industrial product.
With the increase of infrastructure and agreeable government policies investors have been able to invest in opportunities for which local raw materials are available. These include Battery manufacturing, Pharmaceuticals, Industrials Starch and adhesive, pottery and ceramics. Others are coal-based industries, commercialization of research findings and manufacturing of automobile parts for the motor manufacturing industry, food processing and fruit juice processing.
All these ushered in the new age of rapid real estate development in the state. In 2011 the city's land and real estate market took off with the infusion of a budget of N66.4 billion into the state with a sum of N26.3 billion which is 39.6% of the budget size dedicated to aggressive infrastructural development programme which improved and tripled the real estate market in less than three years. A review of the effect of this noted that the rental rates in Enugu have more than doubled and in some cases, the value of land has tripled.
According to research, local estate agents confirm that the annual rent for a standard three-bedroom flat in the city's New Haven enclave - a medium-to-high density area mapped out in the 1960s - is around 500,000 naira has gone up 150 percent since 2011.
What makes Enugu a frontier for real estate development? More to the point, why should we be looking at this second rate city? The answer is relative. Despite the megacity hype, in the coming decades the vast majority of urban Africans will live not in sprawling urban centres like Lagos but in small and midsize cities like Enugu. According to the UN projects that by 2050, seven out of 10 people will live in urban environments and that roughly two thirds of this global urban growth will happen in Africa.
Factors that have and will influence the real estate market positively include improved agricultural practice which makes land more available for development and also provides a means of earning income.
Improving security; According to Knowmag.org, Enugu was declared the safest place in Nigeria. With the infusion of brand new squad cars equipped with high-end communication equipment to the State police by the Government, the Nigerian police in Enugu are doing a marvelous job in keeping the crime rate at a minimal. This in the long run will guarantee safety of lives and properties.
Improving Infrastructure; The roads within Enugu and the highways that surround it are in tremendously good condition. The current road maintenance program put in place by the government ensures that not only are new roads constructed, but the existing ones regularly undergo rehabilitation. For instance, the new Enugu-Nsukka expressway along Nike Road makes the trip to Nsukka shorter. This development will help improve business for investors.
Government Policies: With flexible government policies, the Enugu State Government has made it easy for investors to feel welcomed. These include everything from tax rates to land acquisition thus opening up the real estate market more.
Lastly is accessibility: One thing that endears prospective investors in real estate to a particular geographic location is access to other points of business-be it raw material sources, distribution points or other partner establishments and easy access to cities major cities like Lagos, Abuja, Port Harcourt, Abakaliki, Akwa, Onitsha, Umuahia just to name a few. Also, with the recent commissioning of the Akanu Ibiam International Airport, access to major international cities is only a ticket away. With the continued improvement of the state, we might yet find ourselves looking to Enugu for investment and development.
Read more articles on http://www.lamudi.com.ng/journal
Enugu has been known to be a developing coalmining, commercial, financial and industrial centre, with a booming economy and vast investment opportunities. The Central Bank of Nigeria has a branch in the town. It also has an airport and good communication facilities with modem telephone, telegraph, fax and postal services. The intracity road network is adequately diffused and there are many highways and a railway leading out to other states. As a town, Enugu has had a chequered political history. Starting from 1917 when it was officially declared a second class township; its political hinterland grew very fast and vast.
In terms of investment opportunities, Enugu is known for industrial and commercial development. It has a fully developed industrial infrastructure. The Emene industrial Estate remains the primate industrial site and there is concerted effort to establish industrial Estate in all the local government areas of the state. Enugu also has a good airport within the Emene industrial Area. There is adequate satellite telecommunications and excellent network of the federal and state highways. Presently, there are about 52 industries operating in the state, three of which are large scale and the rest belong to the small and medium scale category. ANAMMCO, the manufacturers of assorted and quality automobile products is one of the big three industries in Enugu state. There is also the project development Agency (PRADA) that fabricates and manufactures-wide range of components and industrial product.
With the increase of infrastructure and agreeable government policies investors have been able to invest in opportunities for which local raw materials are available. These include Battery manufacturing, Pharmaceuticals, Industrials Starch and adhesive, pottery and ceramics. Others are coal-based industries, commercialization of research findings and manufacturing of automobile parts for the motor manufacturing industry, food processing and fruit juice processing.
All these ushered in the new age of rapid real estate development in the state. In 2011 the city's land and real estate market took off with the infusion of a budget of N66.4 billion into the state with a sum of N26.3 billion which is 39.6% of the budget size dedicated to aggressive infrastructural development programme which improved and tripled the real estate market in less than three years. A review of the effect of this noted that the rental rates in Enugu have more than doubled and in some cases, the value of land has tripled.
According to research, local estate agents confirm that the annual rent for a standard three-bedroom flat in the city's New Haven enclave - a medium-to-high density area mapped out in the 1960s - is around 500,000 naira has gone up 150 percent since 2011.
What makes Enugu a frontier for real estate development? More to the point, why should we be looking at this second rate city? The answer is relative. Despite the megacity hype, in the coming decades the vast majority of urban Africans will live not in sprawling urban centres like Lagos but in small and midsize cities like Enugu. According to the UN projects that by 2050, seven out of 10 people will live in urban environments and that roughly two thirds of this global urban growth will happen in Africa.
Factors that have and will influence the real estate market positively include improved agricultural practice which makes land more available for development and also provides a means of earning income.
Improving security; According to Knowmag.org, Enugu was declared the safest place in Nigeria. With the infusion of brand new squad cars equipped with high-end communication equipment to the State police by the Government, the Nigerian police in Enugu are doing a marvelous job in keeping the crime rate at a minimal. This in the long run will guarantee safety of lives and properties.
Improving Infrastructure; The roads within Enugu and the highways that surround it are in tremendously good condition. The current road maintenance program put in place by the government ensures that not only are new roads constructed, but the existing ones regularly undergo rehabilitation. For instance, the new Enugu-Nsukka expressway along Nike Road makes the trip to Nsukka shorter. This development will help improve business for investors.
Government Policies: With flexible government policies, the Enugu State Government has made it easy for investors to feel welcomed. These include everything from tax rates to land acquisition thus opening up the real estate market more.
Lastly is accessibility: One thing that endears prospective investors in real estate to a particular geographic location is access to other points of business-be it raw material sources, distribution points or other partner establishments and easy access to cities major cities like Lagos, Abuja, Port Harcourt, Abakaliki, Akwa, Onitsha, Umuahia just to name a few. Also, with the recent commissioning of the Akanu Ibiam International Airport, access to major international cities is only a ticket away. With the continued improvement of the state, we might yet find ourselves looking to Enugu for investment and development.
Read more articles on http://www.lamudi.com.ng/journal
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