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Real estate is a sustainable investment

Real estate is a sustainable investment
Photo by Pickawood- Ask Nigeria

Experts predict greater attainments for the real estate sector in 2023.

Mr. Kunle Awolaja, former West African Chapter Chairman of the African Real Estate Society (AFRES), speaking on challenges, required reforms, outlook and opportunities in the real estate industry in 2023 asserted that the real estate market was not so moved by post COVID-19 pandemic. Since 2020, there have been massive development as investors dive into the real estate business as one of the most sustainable means of investment. Real estate investment is the best method of accumulating wealth through long-term investments.

In the next 20 years, analysts predict the value of global investable real estate to grow by an annual average of 5.2 percent exceeding $85 trillion. The underlying reason for owning real estate remains positive notwithstanding macroeconomic shocks and political forebodings. The highest growth of the industry, according to statistics, was in the second quarter of 2021 where it attained 3.85 percent growth. In the third quarter of 2021, regardless of the harsh economy and high cost of building materials, there was an expansion of the sector by 10 percent. Even with these facts, experts look forward to greater attainments for the sector in 2023.

Expensive residences and naira depreciation affects the industry.

Nigeria, recognized as Giant of Africa has since the past two decades secured its place as the country with the highest real estate investment in Africa owing to its increasing population of over 200 million people. Regardless of these achievements, there are various economic and political issues affecting Nigeria and most African countries which have negatively impacted its real estate sector. One of these critical issues is expensive residences which due to the growing rise in the cost of most home projects in Nigeria poses a great challenge to the real estate market of the country.

Besides the overpriced rates of most Nigerian cities, there is an issue with Environmental, Social and Governance (ESG) – a regulated standard used for evaluation of the environmental and climate effects of housing units. Most apartments in Nigeria suffer pollution, prominence of waste in public areas, absence of trash bins for appropriate waste disposal and others. Naira depreciation has also been of major concern for every sector of the Nigerian economy, real estate inclusive. The depreciation makes real estate investors purchase construction materials at higher prices.

Some Nigerian investors lack necessary educational credentials.

Growing rural-to-urban migration is another major issue challenging the real estate industry. The large number of people from rural areas migrating as renters to urban areas has significantly affected property regulations in Nigeria. Due to this development, many real estate managers and agents use the opportunity of this influx to increase house rental costs. There was also a complain of Ineffective Property Protection Laws as there are no effective implementation of Estate Laws in the country, some times leading to deprivation of legally purchased lands by investors.

These laws are prevalently overruled in developed areas of the country by a group of land grabbers known as Omo-Onile. The fellow of the Nigerian Institution of Estate Surveyors and Valuers further stated that poor quality of buildings have led to many cases of collapsed buildings in many parts of the country. This is an indication that the building materials purchased by some contractors for construction are substandard. Many Nigerian contractors even lack the required educational credentials and professional experience.

Potential investors would be driven away by challenges in the sector.

In his statements, Awolaja foresees reforms in aspects of registration and issuance of permits to professionals in the real estate field across the nation; receiving and investigation of petitions and complaints lodged against registered real estate experts; nationwide registration of real estate transactions; data assembling of transactions in real estate; documentation of tenancy transactions beyond five years and establishment of real estate polices in accordance with global best practices. He added that a lack of attention to issues affecting the real estate sector could be a stumbling block to potential investors.


Related Link

Chambers: Website

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Admin
1
6 days ago

Real estate is a sustainable investmentExperts predict greater attainments for the real estate sector in 2023. – Express your point of view.

Abusi
Member
8
5 days ago

This is very true. Investing in real estate is a very viable enterprises. The return of invest is well enough to encourage us to invest in real estate. It should also be when managed and controlled.

Member
8
5 days ago

Despite macroeconomic shocks and political gloom, the fundamental justification for buying real estate remains good. In addition to most Nigerian cities’ exorbitant prices, there is a problem with the environment, social issues, and governance.

Member
8
5 days ago

A failure to pay adequate attention to the challenges that are influencing the real estate business could provide an obstacle for prospective investors.

Member
8
5 days ago

Investing in real estate is, by far, the most effective strategy for amassing money through the use of long-term investments.

Member
8
5 days ago

There has been a significant amount of growth as a result of investors entering the real estate market because it is considered to be one of the most sustainable forms of investment.

Member
8
5 days ago

Real estate investment is a very lucrative business. However, potential investors may run into trouble if they don’t pay attention to concerns affecting the real estate business.

Member
8
5 days ago

The value of investable real estate around the world is expected to increase, and given these projections, we ought to put our money there.

Member
8
5 days ago

Due to the country’s rapidly growing population, Nigeria, known as the Giant of Africa, has overtaken other African nations to become the continent’s leader in terms of the amount of money invested in real estate over the past two decades.

Member
8
5 days ago

There was also a complaint about ineffective laws protecting property, which is understandable given that the country does not have any estate laws that are effectively implemented.

Member
8
5 days ago

Structures collapsing across the country are a result of poor construction quality, which suggests that some contractors are using low-quality materials.

Member
8
5 days ago

The underlying rationale for investing in real estate is sound, even in the face of macroeconomic shocks and political gloom. There are concerns with the environment, social issues, and governance in most cities in Nigeria, on top of the already astronomical prices.

Member
8
5 days ago

Nigeria, the Giant of Africa, has led Africa in real estate investment over the past two decades due to its fast rising population.

Member
8
5 days ago

Investing in real estate is a good business and is a business that will grow well if is manage well in other to afford obstacle they might face in the business

Member
8
5 days ago

As a commercial venture, investing in real estate can generate substantial income. However, if prospective investors don’t pay attention to issues influencing the real estate industry, they could get into difficulty.

Member
9
5 days ago

Real estate is a sustainable investment. Real estate business is a profitable business that someone can invest on

Member
8
5 days ago

Real estate investing is a fantastic business that will prosper if it is managed effectively. This will allow investors to overcome any obstacles they may encounter.

Member
8
5 days ago

As reported, I’m not surprise investors diving into real estate. it is considered to be one of the most sustainable forms of investment.

Member
8
5 days ago

There are great prospect in real estate. This is the right time to invest it. As predicted by experts that there will be greater attainments in real estate in the year 2023

Member
8
5 days ago

Real Estate sector is an area that real investors should look at and invest if they want to make profits in this year 2023.Also confirmed by the experts.

Member
9
5 days ago

Real estate is a sustainable business with good growth and imghsi can be seen from.its expansion and greater attainment from its investment because it’s a real lucrative business.

Member
9
5 days ago

According to the world economy statistics,real estate investment is one of the investment that someone can make and go home to sleep without any bad thought if will yield or not but in Nigeria it has turn sour for many people because they were duped.

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