The opportunities created amid the COVID-19 pandemic has raised optimism that the residential, construction, and industrial segments of real estate market are to drive the sector’s growth, while yielding good returns for developers, investors and landlords, according to Nigeria Real Estate Report 2021.
The increase in demand for warehousing amid a surge in e-commerce transaction in Nigeria is expected to fuel the growth of industrial subsector. Also, the executionn of projects that were put on hold amid COVID-19 lockdown and the rebuilding of recently vandalised properties during the ENDSARS protest is expected to boost expansion of construction sector and thus, drive the growth of the overall real estate market in 2021.
“By and large, the outlook for residential real estate looks very good in 2021. This is across all zones of the nation. Again, this will hold either for sale or lease. The market will see a boom, as investors seek alternative investment outlets for investible funds with the collapse of money market instruments. Residential property values; residential and sale, will defy expectation this year as it is projected to easily attain 10-20 per cent increase in value across board.
Following increasing security awareness, the demand for more secure estates and gated communities will influence the choice of tenants/homebuyers in choosing a location. This will become more important in residential property development and could shore up values of such properties in the estates by as much as 5-8 per cent.
Source: News Formal (newsformal.com)