Happy New Year from Real Estate Revolution Plus. Here are a few updates in the Nigerian Real Estate space.
1. Govt’s Performance Was Dismal – Ajayi
There is so much talk, talk, talk about housing, but the real critical issues keep on being postponed. And what are these critical issues as far as I am concerned?
Number one is the issue of accessibility to land. You know getting a C of O is still a nightmare in almost all the states of Nigeria. And when you don’t have a title, you can’t borrow. When you don’t have a title, you can’t raise finance. And therefore, the issue of this government consent and all these rigmarole which has been on the front burner for long; I served on the Committee of Housing and Urban Development in 2001, it has being raised since then and its still being raised all over, they still keep on postponing it.
2. Technology to drive investment in residential real estate in 2019
Property technology will drive investments in real estate, especially the residential sub-sector, this year, a new report has said.
In its 2019 Nigeria Real Estate Market Outlook, Northcourt, a real estate investment and research company, said the industry would see more supply across the various sub-sectors but with varying levels of demand.
According to the report, the developments will be driven by new technologies, and both the government and private developers will be more innovative in products delivery.
The report added, “The residential market will see more partnerships involving Proptech firms and the introduction of data-driven products and services. Well put together property startups are raising funds from local and foreign investors who are not averse to potential risks-vis-a vis the high yields obtainable.
“The Federal government, coming to terms with the impact of housing will begin delivery from adopting a number of models.”
It stated that landlords would also be more open to nil increases and slight reductions in rent renewals as tenants wait till after the elections to make major property decisions.
“2019 will see a boom for the savvy real estate investor,” the report added.
3. Default on loans rises as glut hits property market
Financing real estate development is seen as one of the most difficult things to do in Nigeria. Over the last few years, it has been made worse due to the downturn in the economy.
According to stakeholders, the real estate industry has not really recovered from the impacts of the recession.
Findings show that developers have had to take the heat as empty houses dot the landscape of major cities in the country, tying down funds while many Nigerians are homeless.
It is estimated that Nigeria has about 17 million housing deficit, a figure that has been in dispute because some stakeholders think it may be up to about 20 million considering the growing population.