- Housing Market May Take Time to Stabilise
Following the current economic recession and its attendant effects on the real estate sector, experts have said that it may take time for the housing market to stabilise despite predictions that the economy will pick up this year.
A lecturer and member of faculty, Lagos Business School, Dr. Doyin Salami, said at the International Real Estate Federation’s Annual Award and Business Dinner 2017, that real estate depended directly on economic activities to grow.
He said, “It may probably take another two years for the housing market to become productive looking at the present economy and the rate at which already built houses up for sale or rent are not occupied.
“The housing sector needs to look on how to capture more information and data to help those who want to invest to have a holistic approach on the sector; it is a major challenge that the professionals in the sector needs to solve. During inflation, the sector also suffers because it becomes difficult for suppliers to get commodities at reasonable prices, which create another fundamental issue.
“The National Bureau of Statistics released a new estimate that Nigeria is now 190 million people; and looking at where Nigeria and some couple of countries will be in 2100, Nigeria will be the third most populous country in the world and that means commercial real estate, industrial real estate and residential real estate needs to be built.”
He said the sector had been in decline and had contracted consecutively for five quarters.
The Lagos State Commissioner for Housing, Gbolahan Lawal, said professionals in the real estate sector as well as the government should make building the sector a priority.
Lawal said the Lagos State Government planned to invest more in the sector, adding, “We have decided to inject private capital into housing delivery in Lagos State.”
The President, FIABCI-Nigeria, Joseph Akhigbe, stated that real estate had been adversely affected by the prevailing economic situation.
“I am sure that in this brief period since the economy took a downturn, we have all witnessed the good, the bad and the ugly of the devaluation of the Nigerian currency, rising inflation, excess supply of property as a result of the economic downturn and surprising stable prices despite the sharp fall in the demand for property,” he said.
FIABCI Nigeria also honoured individuals and institutions it recognised as drivers of growth in the sector at the event.
According to Akhigbe, it is an annual event through which the association provides insights on real estate and contributes to the national economic space.