Property investments have heightened with the increase in economic development around the country. And thanks to the increasing population, there are still property gaps yet to be filled.
However, certain concerns are beleaguering real estate investments in Nigeria, an entity still considered a developing country. These problems range from untamed inflation to political uncertainties.
What then is the outlook of real estate investment in Nigeria despite these challenges? This is extensively discussed below.
Nigeria Remains A Fertile Ground For Real Estate Investments – Property Gaps Yet Unfilled
Nigeria is a middle-income country with over 200 billion citizens. Not only is the country the most populous black nation, but it also has the biggest economy with an estimated gross domestic product (GDP) figure at $514.076 billion (2021). Real Estate investment is one of the easiest means its citizens get to partake in this wide economy.
The population has increased the need for improved properties. Personal preferences which are inclined to technological advances are yet to be met. Due to changes in traditional living conditions, youths look onto developers for residential buildings that meet their likings; citizens prefer apartments with modern adaptation to modern security frameworks.
Locations near university sites are the markets with an insistent need for safe housing units. Students prefer safe and secured housing options near their institutions or at least a major business district. This is however yet to be actualized.
There are also gaps left unbridged in the office and retail property markets. Demands for luxurious office buildings have motivated developers toward developing state-of-the-art structures in business districts.
The challenge of securing rights to properties in busily astir locations is certainly a restraint. However, there are other strategic business locations with no presence of property investments.
The Influence Of Bureaucracy And Technological Deprivation
The real estate industry in Nigeria might be flourishing due to the increased need for properties. However, the future looks cold considering the bureaucratic challenges prominent of which is the restrained participation of foreigners in the industry. Foreigners’ participation in real estate in Nigeria is discussed under a separate subsection below.
Limiting their participation, locals are faced with difficulty in getting the necessary documents and documentations to start property investment. The financial capability to fulfill the required registration might not be available for most people.
Aside from the challenges of government approval, technology is yet to be fully utilized in the real estate industry. Unlike similar industries internationally which are powered by technology during purchase, management, and leasing, the Nigerian real estate market is outweighed by drawbacks hampering an effective use of technology.
One such drawback is the poor supply of electricity. The few regions in the country where power supply is fairly available have the active presence of real estate investments. Given the global inclusion of technology in the property sector, the growth of the real estate industry in Nigeria hinges on overcoming barriers to technological strides.
And once these challenges are overwhelmed, then will the future of real estate in Nigeria become more promising to accommodate many.
Foreigners Participation In Nigeria’s Real Estate Industry
Citizens have the right to invest in a country, and so are foreigners. However, there are restrictions to the business participation of foreign individuals and firms by some countries. One such country is Nigeria.
