The Nigerian real estate market has experienced massive changes and growth over the past years. With a population of over 200 million people, Nigeria’s housing market and landed properties market embodies many opportunities and growth potentials for real estate investors and homebuyers.
The housing market in Nigeria has seen significant growth in the past decade, with a surge in demand for affordable and decent homes. Experts believe that the housing market in Nigeria will continue to grow in 2023, with certain trends set to dominate the market. This article will discuss the various housing trends expected in Nigeria in 2023.
- Smart Homes: As defined by investopedia, a smart home refers to a convenient home setup where appliances and devices can be automatically controlled remotely from anywhere with an internet connection using a mobile or other networked device. With the advent of technology, smart homes are becoming increasingly popular in Nigeria. Smart homes are designed to use technology to automate tasks such as lighting, heating, and security, making life easier for homeowners. In 2023, we expect to see more smart homes being built in Nigeria. As more people become aware of the benefits of smart homes, developers will be compelled to include smart home technology in their designs to meet consumer demand.
- Affordable Housing: According to wikipedia, affordable housing is housing which is deemed affordable to those with a household income at or below the median as rated by the national government or a local government by a recognized housing affordability index. Affordable housing has been a major challenge in Nigeria. However, in 2023, the housing sector is expected to focus on providing affordable homes for Nigerians. Builders are expected to use cost-effective construction materials to develop affordable homes that meet the needs of prospective homeowners. This trend will enable more Nigerians to become homeowners, providing them with an opportunity to own a home without breaking the bank.
- Eco-Friendly Homes: An eco-friendly house is a house which has respects for the environment, it is made from non-toxic materials, and is energy-efficient in both construction and use. However, new technologies and construction methods mean that the concept of an “eco-friendly home” is constantly evolving.
More Nigerians are becoming environmentally conscious, and this has extended to the housing sector. In 2023, we expect to see more developers incorporating eco-friendly features, such as solar power and rainwater harvesting, into their designs. These features not only help the environment but also lower homeowners’ energy bills, making homes more sustainable.
- Luxury Housing: Although there’s been a growing demand for affordable housing and landed properties in Nigeria, many real estate investors prefer investing in luxury properties and houses. Most investors see owning a luxury home as a status symbol and a sign of financial success coupled with the fact that luxury homes offer a level of comfort and security that is not available in most affordable homes and are located in desirable areas like Lekki, Maitama, Ikoyi Etc, with close proximity to desirable landmarks like good schools, shopping centers, and other amenities. Look for example, the high-end communities in Lagos and Abuja with distinct features such as gated access, 24-hour security, and other upscale features. Virtual Tours and Digital Marketing
- Virtual Tours and Digital Marketing: The COVID-19 pandemic has accelerated the use of digital marketing and virtual tours. In 2023, we expect to see more developers and real estate agents leveraging digital channels to market their properties. Digital platforms such as social media, email, and online listings enable marketers to reach a wider audience and showcase properties with virtual tours, enabling potential buyers to view properties without physically being present.
- Flexible Spaces: In 2023, there’s been an emergence of more homes designed with flexible spaces. Flexible spaces are rooms that can be easily converted to serve different purposes as needed. These spaces could be used as a home office, gym, or studio, among others. Flexibility is crucial as homeowners’ needs change and evolve, and it enables them to maximize the use of their space and reduce the need to move.
- Access to Financing: The success of the housing sector in Nigeria largely depends on access to financing. In 2023, we expect to see more government intervention in the housing sector to make financing more accessible to Nigerians. Government intervention could include the provision of tax incentives for developers, government-guaranteed loans, or the establishment of a mortgage refinancing company.
In conclusion, the housing sector in Nigeria is expected to evolve significantly in 2023, with the above trends dominating the market. The integration of technology, affordability, sustainability, flexibility, and accessibility to financing, especially mortgage will define the future of the Nigerian housing market. Developers and real estate agents need to be aware of these trends to meet the needs of prospective homeowners adequately by staying up to date.