THE real estate market across Nigeria is facing significant challenges, with property prices skyrocketing and sales slowing down in many parts of the country, Executive Director of the Housing Development Advocacy Network (HDAN), Mr. Festus Adebayo, has said. Adebayo pointed out this while highlighting the dramatic impact of inflation on the real estate sector.
He explained that the steep rise in property prices was partly due to inflation and the high cost of building materials, exacerbated by the devaluation of the Naira and the rising costs associated with importing construction materials. This inflationary pressure, he pointed out has also led to increased challenges for estate developers, who now face difficulties in securing buyers, despite resorting to extensive advertising efforts. In light of these challenges, Adebayo emphasised that it has become tough for real estate sales nationwide, with similar trends observed in other major cities like Lagos and Port Harcourt.
According to him, developers have come under pressure to innovate in their construction methods, funding models, and financing options for buyers to sustain their businesses in this difficult economic environment. “For the Nigerian economy’s real estate sector, 2024 has not been a favorable year. This is clearly reflected in the sector’s performance during the first half of the year.
According to recent figures from the National Bureau of Statistics (NBS), despite contributing a substantial N11 tril.