Despite Economic Headwinds, Real Estate Investments Continue to Surge
ESV Lucky Blessing Emi
More than ever and irrespective of the investment analysis used, Nigeria’s real estate sector remains the economic asset of choice when it comes to investing in the Nigerian fragile economy. Despite the empirical fact that virtually all macroeconomic indicators are in the reds, the real estate sector holds strong potential for investors of all categories. In the absence of money market instruments like shares in Nigeria today, the real estate space provides a safe haven for investors.
All over Nigeria, especially in major cities like Lagos, Abuja, Port-Harcourt, Kaduna, Kano, Asaba, Benin-City, and Abeokuta, the demand for residential and commercial real estate is on the increase. Investors, real estate professionals and property owners in this line of the real estate ecosystem can attest to the fact that their collective activities in this regard are profitable. In cities like Lagos, Port-Harcourt, and Abuja, increases in demand for warehousing as accessioned by a sudden surge in e-commerce transactions is fast changing the narrative of the industry. The development and management of warehouses by real estate professionals remains one of the most lucrative transactions in the industry. Warehouses are sought after commercial facilities by high profile and blue-chip enterprises, and many of them are multinational corporations doing business in Nigeria. Obviously, there are economic challenges that are inherent in building and managing warehouses but the gains outweigh the challenges for investors who dare to part with their money.
The construction of various projects and smart estates by both institutional, corporate, and individuals is another investment opportunity for investors to cash in and turn their economic fortunes around and drive the growth of the overall real estate market. Before, during, and after COVID, the real estate sector has remained economically viable for investors.
Real estate outlook will continue to look brighter, and will also remain a moment for development and shared prosperity. One sure way to make this important industry thrive is through strong partnership between the government, private sector, and multilateral institutions. With strong partnerships, the government, investors and the various market units cum consumers will benefit maximally. As the purchasing powers of the real estate consumers continue to slide, massive investment by the government through partnership will help in regulating the escalating prices of housing in the Nigerian economy.
With the new government in place, it is expected that the Nigerian economy will witness positive changes. And accordingly, businesses, including the real estate sector are expected to breathe in some fresh air. Investments in residential real estate, commercial real estate, construction real estate, industrial real estate, hospitality real estate and retail real estate are all expected to witness growth since the new government is a government with clear-cut business interest.
The government and all stakeholders in the Nigerian built environment have pivotal roles to play in entrenching the needed business environment for the real estate sector’s continuous growth and development.
ESV Lucky Blessing Emi, is a registered Estate Surveyor and Valuer. He is the Principal Consultant of Lucky Emi Consulting, a leading Nigerian firm of estate surveyors and Valuers.
