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The real estate industry is a booming one, despite the hurdles posed by the pandemic. However, the industry’s market has been deeply affected by the pandemic due to the falling economic growth of Nigeria and the world at large. Studies have shown that even the post-pandemic years will still see the real estate industry highly impacted by the pandemic. It will have a huge effect on housing prices, buyer behaviour, and real estate in general. In the article, I put down several opinions of predictions by various surveys done by leading economists and business leaders within and outside Nigeria.
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  1. Less Rush To Buy Residential Real Estate.
As the year begins with so much spending done during the Yuletide of 2021, the progress of house sales will be below. People will be focused on kickstarting business operations which might last up to March. Existing metropolitan areas to newly developing areas might not be the point of focus for the first quarter of the year.
  1. The Workforce Will Encounter Homebuying Challenges. 
Presently affordable housing is facing a crisis due to housing shortage and increasing barriers to entry with higher credit scores, deposits and income requirements. In most developing housing estate areas of Lagos and Abuja, buying lands or homes will be increasingly difficult in 2022 due to new policies of buyers’ capacity to immediately develop lands. This might affect various workforces around Nigeria who are interested in becoming homeowners.
  1. The Market Will Appreciate Significantly.
Landed properties in their usual characteristics will appreciate significantly this year. Three factors will drive its appreciation – scarcity, utility, and demand. On the aspect of scarcity, Nigeria struggles with housing shortages. Moreover, the need for affordable housing is the heart of this scarcity. Second, the case of utility is a result of an increase in remote workers who are increasingly in need of multipurpose space that can serve as home, office and gym. Demand: Millennials are Nigeria’s largest generation, in their prime home-buying years. 
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  1. There Will Be Infrequent Exhibitions And Offers.
Unlike common commodities like clothes, watches, shoes, people are not obsessed with buying more homes, if they have one already. In many ways, the real estate industry will not engage in aggressive sales due to the global economic crisis. Although business will run as usual, sales will be in drips. On the other hand, real estate agencies should be more focused on renting comfy office spaces as more businesses will be opened this year.
  1. Housing Prices Will Become Increasingly High.
2022 is the year of economic recovery globally from the pandemic and as such, will affect the industry. Homes sold at N2 million might go for 3 to 4 million Naira. The hyperinflation effects of the economy will make housing prices increasingly high. These days, builders are building homes average Nigerians cannot afford. As the price of cement hits N5,000, realtors will find it necessary to inflate the price of houses.
  1. The Market Is Shifting Into A More Balanced State.
Before the middle of this year, the market will experience a balance as many people will recover from several economic shocks and financial lows. By then, the inventories might seem to be picking up, and buyers who have been suffering from fatigue will have more options and more buying leverage than we have seen in the past. Forecasters are predicting a shift to a more balanced market in the middle of the year. 
  1. The Use Of Technology Will Drive Value Of Assets.
There will be greater incorporation of technology in the real estate business process. More developers and realtors will use technology to drive the value of their assets. The use of technology will be central to making the industry an attractive and sellable business to prospective homeowners. 
  1. Rentals Will Be Progressive.
Those engaged in rentals will experience a measure of increase as they will be meeting the housing crisis plaguing the country. The need for a better hybrid space for home and work will lead to more demand for affordable and comfortable houses. Featured image:Forbes
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This article was first published on 1st February 2022

nnaemeka-emmanuel

Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

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