Industry Trend Analysis - China-led Prefab Construction Brightens Residential Outlook - FEB 2017
BMI View: The introduction of prefabricated building techniques promises to give a boost to residential construction in Nigeria as effici encies improve affordability and allow developers to tap significant demand for new low-cost housing. Chinese expertise and financing will be critical for proliferation of the technology in Nigeria and other emerging markets.
The commissioning of a new factory for prefabricated homebuilding components will help boost residential construction in Nigeria, in particular when coupled with government plans for large scale civil/social housing developments. CTSR Group, the Nigeria-based partner of China's Broad Homes Industrial International Co., is set to launch a pilot program via a new factory in Abuja for the use of pre-cast concrete components and other materials for residential construction in Nigeria.
We have previously highlighted the efficiency gains achievable from the introduction off-site and prefabrication methods into the construction process, and believe this development will offer Nigeria's residential building segment a chance to increase output at a time when the industry is suffering from the broader macroeconomic headwinds facing the country ( see ' Megatrends Will Catalyse Surge In Modular Construction ' , October 26 2016). While we note that that much of the value added will now fall under manufacturing, the erection of the pre-fabricated structures will provide support for the residential construction sector, as will the ancillary infrastructure for new developments.
|Pre-Fabrication Could Increase Output|
|Nigeria - Residential & Non-residential Building Industry Value, NGNbn And Real Growth % y-o-y|
|Source: National Sources, BMI|