The Counterintuitive Opportunity: Investing in Commercial Real Estate During an Economic Downturn – Dr. Adeleke Ifeoluwa Yomade’s Perspective

While it may seem counterintuitive to invest in commercial real estate during an economic downturn, history has shown that some of the best investment opportunities arise when the market is in a slump. In Nigeria, as in other parts of the world, commercial real estate has consistently demonstrated its resilience, making it a prime sector for opportunistic investors looking to capitalize on lower prices and favorable market conditions.

Economic downturns typically lead to reduced demand in certain sectors, but for commercial real estate, it can be the opposite. As businesses adjust to new market realities, the demand for flexible, adaptable commercial spaces often increases. This is particularly true in Nigeria’s fast-growing urban centers, where businesses continue to evolve despite economic challenges.

One of the key advantages of investing during a downturn is the potential to acquire properties at lower prices. Sellers who are eager to offload assets may offer discounts, giving savvy investors the chance to buy prime properties below market value. As the economy eventually recovers, these properties tend to appreciate, providing substantial returns on investment.

Moreover, commercial real estate offers long-term stability. Even during difficult economic periods, businesses still require physical spaces to operate, whether for offices, retail, or logistics. This ensures that rental income remains steady, offering a buffer against the volatility of other asset classes.

In conclusion, while an economic downturn may cause hesitation among some investors, it presents a unique opportunity for those willing to take calculated risks. Commercial real estate in Nigeria offers a counterintuitive yet potentially lucrative option for investors looking to secure long-term gains and capitalize on the eventual economic upswing.

New commercial projects are coming up from 02 international while 02 mall Jahi is still selling.