The real estate market in Nigeria has been growing at an exponential rate.
In fact:
In the year 2017, the Nigerian economy grew by 3.2%, which was far higher than the average 2% growth rate of other African countries.
This is expected to continue over the next 10 years as well with projections showing that Nigeria will be among the top 10 economies by 2030.
While this growth can be attributed to many factors such as real estate developments across the country, innovations, and increased demand for housing due to population growth, etc.
But one thing remains shocking.
There are more people looking at buying homes or landed property than ever before.
Therefore, causing the prices of properties to continue to rise exponentially as well.
For that reason, here are the ways the real estate market will change in 2023…
The evolution of industrial areas in the real estate market
The industrial areas are going to be the new residential areas.
More people will work in these places than anywhere else, and they will have a lot more amenities than residential areas.
They’ll be more developed, accessible—and even more modern.
No megacities by 2023
As Nigeria’s population continues to grow, the country will face an increasing demand for housing.
In 2023, Nigeria’s population is expected to reach 300 million people—a number that will likely require more than 3.2 million homes by then.
The majority of this growth will occur in urban areas and suburbs where property prices are higher and there are more jobs available.
The real estate market might slowdown again by 15% if a recession arises in Nigeria
If any recession arises again, there is going to be a downturn, which will affect the state of the economy and more importantly the real estate sector more than ever before.
The reason why is that many buyers choose to wait before buying a property because they feel that prices may go up in future years.
And that is not pretty the case anymore, now the currency exchange is high, and people felt the Naira currency is depreciating each day causing a lot of headaches to real estate developers and investors.
3D printing technology to replace brick and mortar
3D printing technology is a promising new way to build homes.
It can be used in remote areas, where brick-and-mortar construction is impossible to initiate.
The technology also allows for the creation of houses with poor infrastructure or access to materials—for example, it can be used to create structures that don’t require foundations or other building materials that may not be available locally.
Real estates apps to dominate the market
As the real estate market matures, buyers and sellers will increasingly use apps to find properties, negotiate prices, and sign contracts.
They’ll also be able to manage their properties after purchase.
Apps have become popular in many markets around the world because they allow buyers and tenants alike to make transactions from anywhere at any time of day or night.
This flexibility makes it easier for people with busy schedules—like daily workers—to interact with real estate agents or real estate companies without having to leave their homes or offices.
In Nigeria however, this kind of convenience is still lacking and this kind of innovation is not saturated yet.
Even though most property owners don’t have access to mobile devices like smartphones or tablets, we shouldn’t forget that the real estate market is shifting in favor of millennials.
And real estate brands must do everything possible to get in front of them and persuade them to buy.
More investment in real estate by corporations.
Corporations will invest more in real estate.
The government has been pushing for a capital markets development plan(CMDP) that will allow investors to buy shares of corporations and firms through the stock market.
This will mean that more investment money will be available for real estate development projects, which can only be good news for Nigeria’s economy as a whole.
African real estate boom predicted to continue
The African real estate market is a growing one.
The continent’s population is on the rise, and with it comes an increase in consumer spending.
Africa has one of the youngest populations in the world, with half of them being under 30 years old.
This means that there will be more demand for housing that caters to this age group, which means higher returns for developers and investors.
Plus, Africa as a whole is projected to continue growing at a faster pace than any other region on Earth over the next five years—as well as outpacing other emerging markets like India and China over this period.
This means opportunities abound if you’re planning on investing in property.
Recession will hit Nigeria in 2023
A recession is a period of reduced economic activity.
The economy typically experiences a slowdown in the growth rate, and more people become unemployed.
In Nigeria’s case, we’re expecting an economic slowdown as well as a fall in real estate prices due to high inflation rates and low property taxes.
Lower property rates on home loans starting in 2023
The property market is expected to change in Nigeria in 2023 as the country’s economy improves.
The Nigerian economy is expected to grow at a rate of 3% per year, which will help reduce unemployment and increase wages.
This will lead to higher demand for real estate because people want a safe place to live and invest in property as an investment vehicle.
As more people move out of their homes and into apartments or houses, there will be fewer units available on the market for sale or rent than before the crisis began so you may have trouble finding something that meets your needs if you’re looking for a home without much money for down payment or takeout costs attached(which are common when buying).
Investment in smart homes predicted to grow by 200% by 2023
Smart homes are the future, and they’re not just for the rich.
As more people have access to high-speed internet and the ability to control their homes remotely, smart home technology will become increasingly popular across Nigeria.
In addition to being able to remotely control your lights and appliances, smart homes also come with many other benefits.
They’re more energy efficient than traditional homes; they’re more secure due to increased security features like alarm systems or wireless cameras; they’re more convenient because you can schedule tasks throughout the day(such as having an energy-efficient washing machine run while you sleep), there’s greater connectivity in terms of Wi-Fi availability.
And even if it doesn’t work on a particular day due to poor signal strength from your provider’s backbone network(which might happen), this doesn’t mean that there won’t be any connectivity available elsewhere in its vicinity where another tower exists nearby offering better coverage
Increase by 50% in sales of commercial and residential real estate in Lagos between 2021-2023.
The Nigerian real estate market is expected to increase by 50% in sales of commercial and residential real estate in Lagos between 2021-2023.
This will be achieved through an increase in demand for property, rising wealth levels, and increased purchasing power among Nigerians.
The most populous city in Nigeria, Lagos has been called “the commercial capital of Africa” with over 24 million inhabitants(about three times more than London).
It also has a thriving tourism sector thanks to its rich cultural heritage and vibrant nightlife scene.
With the new Lekki International airport, Lekki seaport, and Lekki free trade zone…
It’s no doubt Lagos is the next “Dubai of Africa”.
Conclusion
There’s no doubt that there is a lot of demand for houses, especially in Lagos and other major cities.
The real estate market will not crash or slow down just because of the recession or slowdown in the economy, but it will definitely be affected by both factors.
In conclusion, the real estate market in Nigeria will be transformed by 2023.
The changes we’ve seen so far have been exciting and promising for buyers, but there is still room for improvement.
With the new innovation in technology, we can expect to see an increase in sales of commercial and residential real estate demand.