Nigeria is a country with almost 200 million occupants, and also due to the economic and political issues, it has had a negative impact on the real estate market.
- Inexperience: Some people will claim that they don’t have the knowledge to invest in real estate and manage it effectively, especially Nigerians in the diaspora who want to invest in Nigeria’s properties.
- Naira Depreciation: The rate at which naira is depreciating has been a major setback for the real estate market. The cost of building on the increase adds salt to the injury. The government not regulating the prices of building material will make it worse and the increase of naira depreciation will continue to be a major setback.
- Poor Building Quality: Cases of collapsed buildings in the country have been due to poor building quality in which some contractors have been insensitive about. A recent example is the Ikoyi building collapse in which many lives were lost and injured. Most Nigerian contractors are majorly about the profit they will make from a project, not giving quality services. This has become a concern for most people and the only solution to this brouhaha is to ensure that adequate, qualified professionals with the right certification are given the projects to do.
Solution & Conclusion
The real estate sector has been a lucrative and productive industry that has helped economic growth over the years. It has generated wealth in Nigeria and it is Africa’s largest sector.
Government should ensure that citizens get the right enlightenment they need. Real estate experts should also put on campaigns and seminars out to people on everything that real estate is all about in order to subside the fear.
Furthermore, there should be a regulation on the cost of building materials in order to have affordable homes for the middle class to live in. Government and real estate experts should work together on how the dream of 700,000 housing will be provided for citizens in a year.
Lastly, naira depreciation has affected every aspect of Nigeria’s sector. Nigeria’s currency has no value and it is affecting not just the real estate industry, but every industry in the country. Naira depreciation should be worked on and ensure there is enough money circulation in the country.