The Nigerian real estate industry is gradually recovering from recession and holds prospects to exit contraction in 2020, a survey by industry sources shows.
After exiting 12 consecutive quarter of recession, slow economic growth hit Nigerian real estate industry, lack of liquidity and dampened purchasing power and thus ended the year on a negative but stabilizing mode.
On the factors that are likely to shape Nigeria’s property industry in 2020 Runsewe, MD, Dutum Limited said that state governments are exploring partnerships towards increasing the housing stock in their respective states.
Homeownership level is only 25 percent in Nigeria whose population is estimated at 200 million. While Lagos remains the commercial nerve centre of Nigeria and the most vibrant property market in the country.
Industry sources see emerging markets such as the Sangotedo residential market as a hub in Lagos that is yielding a good return on investment.
However, commercial property market in Lagos is performing well. Average prices of grade A office ranges from $450psm and $700psm in Victoria Island and Old Ikoyi, Adejumoke Akure, Partner, Estate Links said.
The completion of the Apapa road is expected by industry sources to improve traffic within the axis and ultimately increase demand for industrial properties in Apapa.
3 percent in the second half of 2019 places pressure on real estate infrastructure and it would require that new dwellings provided to accommodate the growing population and businesses.
This makes real estate known to have an edge against inflation, it has the potential to protect against the decrease in purchasing power due to inflation. Runsewe said.
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