The recent report from Northcourt laid forth the outlook for real estate in Nigeria in 2020. The report details key sectors and economic indicators that will help define and shape Nigeria’s real estate scene in the coming year.
The outlook has some bright spots but will most certainly depend on economic/fiscal policies as well as prudent management of debt by the federal government.
TL;DR (Too Long Didn’t Read)
We will summarize the report but feel free to download and read the entire report here.
Currency Fluctuations — this should not be a problem if the focus is on local partnerships and investors as opposed to relying on foreign investors.
Reduction in oil prices will affect disposable income and there is consensus that an increase in VAT may not be the best way to generate revenue.
Land Administration must continue to modernize and digitize, to help swell the systematic land titling of property. Several states like Edo and Anambra have implemented new technology to help expand this process and other states are lining up to do the same- this will be critical to advance the sector.
Modular Residential Construction — this seems to be a trend that is gaining steam and will most likely overtake traditional construction practices. Modular systems save cost, time and improve efficiencies and will speed up residential developments in the near future.
Diasporans seeking to purchase property in Nigeria will have more options to work with local financial institutions to help make buying property easier by offering loans and quarterly payments.
Retail- could be a bright spot since the proximity to densely populated areas can lead to gains in this sector. Entertainment ventures and family options will continue to spike as Nigerians demand such items.
Co-working spaces are rising to meet the demand from urban dwellers as well as the need for multi-level parking facilities to handle automobiles in the CBD.
Infrastructure will be critical to growth and advancement in this sector. Lagos suffers from massive overcrowding, traffic jams, poor road networks, and bridge access — this must evolve to move the country closer towards modernity.
Student Housing– This is a key opportunity for public and private partnerships to build and develop student housing to meet the demand. Most universities are overcrowded and need an immediate injection of units.
Healthcare — another massive opportunity. There is a drastic need for emergency clinics, birthing centers and primary care facilities to meet the constant demand for quality and affordable healthcare- this needs to be addressed by savvy and investor-friendly legislation to spark growth.
In summary — the sector could see some major growth in key opportunity areas if there is support from the government with fiscal and developmental policies.
Let’s pray that it happens.