There is heat on the nation’s real estate, especially in the residential market.
Despite rising demand for residential real estate, there are still not enough homes on the market, making some properties desirable and expensive for potential purchasers. Mortgage rates and funding costs continue to be high despite the weak state of the economy as a whole. A substantial portion of the labour force has upped their costs due to inflation and the rising cost of living, which is harming investors and forcing them to push back project completion dates.
Depreciation of the naira, limited access to public land for mass housing, high building material and financing costs, a growing number of people wishing homeownership, a lack of options for those with low incomes, and an unfavorable business climate are some of the issues affecting the market. The listings and associated offers of residential real estate transactions and trades in the marketplace, according to estate surveyor and valuer Mr. Sam Eboigbe, have recently grown more intriguing.
Commercial real estate sectors loose while residential real estate gain.
What the commercial real estate sector would see as setbacks, according to Eboigbe, the former chairman of the Nigerian Institutions of Estate Surveyors and Valuers (NIESV) faculty of estate agency and marketing, is, however, viewed as the many wins for the residential real estate market. They have recently seen offices reduce their workforces and put some commercial space back on the market. He claims that the widespread adoption of the “work from home” attitude has had a favorable impact on the market’s high volume of transactions.
Since some developers wanted to capitalize on the market and introduced items that couldn’t compete with the expectations and standards present in the market area, it is not uncommon to see listings without healthy bids. You are urged to create expansive designs and elegantly polished products that will stand out in the market arena for quick deal completion. With the exception of the unbelievable exchange rate where the naira was being exchanged at N850 to a dollar going by the black market, he claimed that new elements that could affect the market may not have changed much.
The pandemic negatively affected the real estate sector.
Eboigbe pointed out that Nigerian elections have historically been conducted in a capital-insensitive manner and said that candidates and sponsors will raise significant sums of money via the sales of property portfolios. According to him, this would increase the number of listings in residential real estate portfolios that show the current situations. According to Mr. Demola Adetola, a fellow of the NIESV, residential real estate is currently moving south after seeing exponential expansion over the previous few years. It has gradually decreased as a result of falling remittances from the diaspora, falling foreign direct investment, and weak corporate demand. As shown by large inventories of vacant rental properties and a decline in the number of qualified tenants, they have caused market contractions.
The epidemic had a bad impact on the real estate industry, according to Adetola. It caused a decline in real estate sales and development. Due to the difficulty in obtaining foreign cash and the devaluation of the naira, access to financing and the price of building supplies have increased during the past few months. Nevertheless, he thinks the residential real estate industry is likely to keep growing in the future, albeit at a slower rate, despite the wide range of urgent concerns. Dr. Yemi Adelakun, a real estate developer and managing director of Nigeria Integrated Social Housing (NISH) Affordable Housing Limited, claimed that given the off takers’ purchasing power, the residential real estate market in the upper- and middle-income bracket is healthy. New homes are being built and houses are being sold. The dollar to naira exchange rate is being used by Nigerians living abroad to purchase real estate there.
The real estate market is struggling in two major areas.
Dr. MKO Balogun, an expert with Excellence in Design for Greater Efficiencies (EDGE), said the real estate market is hurting right now on both sides – the rise in construction costs and the subscribers’ inability to finance their acquisition. Before the government implemented the dollar collection to promote remittances, real estate experienced negative growth for more than 36 months and contributed nearly nothing to the GDP. The early excitement about the market’s rise with the increased delivery of one and two-bedroom flats has been muted by higher prices. Balogun continued, “Investment will continue to view residential as a strong alternative. Inventory is slow but not dropping.”
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The proliferation of funds in the real estate coupled with the incessant demands of shelter are of the factors that are affecting the system. There is also not enough control from the government to drive the real estate
Why won’t real estate suffer the heat their is no Finance in the country the exhorbitant prices of building materials has skyrocket and also the rentage of houses is unquantifiable so the problem cut across for all and sundry.
There will be heat on real estate market because there is no enough finance in our country to make thing normal and material are all high and cost so there will be problem with it
Despite increased demand for housing, there is a shortage of available houses, making some of them highly sought after and pricey.
Many workers have increased their rates to reflect the higher cost of living, which is having a negative impact on investors and pushing them to delay project deadlines.
Mortgage rates and funding costs continue to be high despite the weak state of the economy as a whole. because everything is this country has been affected by the bad government of Nigeria. They no get plan for the country
All the price hike in every sector is attributed to the inflation in our country currently as monetary funds are scarce and not circulating amidst high cost of goods and materials.
There are still not enough houses available for sale, despite the fact that there is a growing demand for residential real estate. This causes certain properties to be desirable, which in turn drives up their prices.
Even though the economy as a whole is in a state of weakness, mortgage rates and funding costs continue to be high, and this will have an impact on a significant number of people.
In response to inflation and growing living expenses, a large percentage of the labor force has increased their rates, hurting investors and pushing them to delay project completion dates.
The weakening of the naira, the restricted availability of public land for mass housing, the high cost of building materials and financing, and the rising number of people who want to own their own homes are all contributing factors.
the business climate are some of the factors that are influencing market prices. The listings and accompanying offers of residential real estate transactions and trades in the marketplace are currently more exciting than they were before.
The inflation that hit the world and our dearest Nigeria is really affecting real estate business. Building materials is on the rise and just like what was written about subscriber can continue with funding. The economy is really harsh on everyone.
The country’s banking system is in shambles, the cost of construction materials has skyrocketed, and residential rents have become unmanageable.
In spite of the overall state of the economy being in a state of weakness, mortgage rates and funding costs continue to be high. because every aspect of this country has been altered as a result of the poor leadership in Nigeria, this being the case.
As the writer rightly put it, the two major factor affecting the real estate market is the cost of building materials and subscriber not willing to continue with payment. All these are the results of inflation bedeviling the nation. God go help us
The real estate sector will continue to have much problem because no regulation from the government guiding there operations and the stakeholders that involve will continue to take the advantage to perpetrator their evil act.
Despite the fact that there is a growing demand for residential real estate. There are still not enough houses available for sale.This causes certain properties to be desirable, which in turn drives up their prices.
Depreciation of the naira, restricted access to public land for mass housing, high building material and financing costs, a rise in the number of people seeking homeownership, a lack of options for those with low incomes, and an unfavorable business environment are some of the issues affecting the market.
A sizable portion of the work force has raised rates in reaction to inflation and rising living costs, harming investors and forcing them to push back project completion dates.