One of the issues highlighted is the impact of inflationary rates and the exchange rate-related challenges on the real estate sector’s major players and those who sought to invest in the sector over time. Another is the growing adoption of technology across real estate and construction in the continent, as well as increased access to funding for Prop-tech companies in 2022, and how it will impact the sub-sector in 2023.
The Lead researcher on this report, Martin Uche stated that the real estate sub-sectors such as the land market, in locations like Lagos and FCT, Abuja proved resilient in 2022, with record-level investment in newly emerging areas of these cities indicating growth. He further states “the Ibeju-Lekki/Epe corridor in Lagos, Lugbe in Abuja, and Moniya in Ibadan particularly saw a spike in investment activity. This upsurge in investment was driven by Millennials and Gen-Zs looking for a more stable asset class with a lower entry price point to invest in, following the fall in Crypto-currency”. He said that in other parts of Nigeria, investment in land remained stable, and he expects this to be sustained in the short to mid-term.
Speaking on the performance of the residential market in the past year, the report stated that the inflation rate, alongside the Monetary Policy Rate which was at 22% and 17% at the time of the report impacted the demand and supply side of the real estate market as these increases discouraged renters from taking new leases but rather retained the living spaces, affecting demand. The increasing cost of borrowing, on the other hand, affected supply in the course of the year, particularly among developers who depend on debt financing to execute projects.
The report also shared strong optimism about the opportunities within the Nigerian real estate market. Based on the pricing data that BuyLetLives’ report tracked across Nigeria, the price of properties in Lagos, FCT Abuja, Enugu, Kano, Rivers, and Oyo have surged over the last 12 months.
Other highlights captured within the report were the dwindling performance of short-let apartments across Nigeria’s key cities in 2022 as a result of increasing electricity tariffs and diesel prices, making it difficult for many short-let operators to run profitably. For more information
To get the full report, click the link below to download BuyLetLives’ Nigeria Property Price Index Report.
