The Real Estate Market in Nigeria; during and post Covid-19
Residential Real Estate:
Residential real estate has maintained its resilience through the COVID 19 pandemic. The need for shelter has and will always be in demand as the housing shortfall in the nation remains eminent.
Demand for developed and underdeveloped land within the suburbs like Ibeju Lekki, Arepo, Simawa, Mowe, Agbara and Ikorodu has recorded no evident change in demand compared with the 4th quarter of 2019.
Commercial Real Estate:
The commercial real estate sector relies on cash flow and is hugely affected by low occupancy rates in the hotel sector to the closure of commercial spaces due to social distancing and stay at home order.
The road ahead in Nigerian Real Estate market:
In spite of the devastating impact of the coronavirus on the global economy, Risk-averse investors seeking high returns on their investment still see the real estate market as viable.
The net asset value (NAV) of real estate funds climbed to N45 billion as of April 24, 2020, representing a 2 percent increase when compared to the N44.15 billion.
There are various opportunities which are likely to arise within the post-recession housing sector. There would be more affordable housing projects with medium-term payments.
For investors, returns will be stronger in certain developing cities and suburbs than in primary markets, thereby driving interest toward less-established markets.
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