Despite the encouraging and evolving trends, the Nigeria property market is experiencing and the rapid urbanization of various cities in the country, the Nigeria real estate industry is still burdened by several issues that are hindering its growth. Some of the issues affecting the Nigeria property market and suffocating it from achieving it’s true potential include:
- High Costs of Property Development
Building a house in Nigeria, especially in some urban cities like; Lagos, Abuja or Port Harcourt can be very high. Some of the reasons for this include; high costs of building materials, high skilled labour costs, costs associated with poor roads among others. About 75% of dwellings in Nigeria’s urban areas are built of concrete, cement prices in Nigeria are rising by the minute than in other neighboring countries and compared to world market prices, there is the issue of lack of adequate infrastructure and more. All these things put together, make it hard to invest in the real estate sector of the economy.
- Limited Source of Funding
Real estate is usually capital intensive and Nigeria possesses all the key factors for a lot of real estate investment; a growing middle-class population, growth in consumption, rapid urbanization and a young demographic compared to more mature economies yet, financing remains a problem both for property developers and prospective homeowners. Whether you are thinking of investment property financing or securing real estate loans for financing a personal home purchase, you would still have to deal with the issue of insufficient funding down the line. Although the government, some private firms as well as mortgage institutions are trying to curb this, we are still a long way from home.
We will conclude this topic under discussion over the next two blog publications. Thank you for reading and stay connected to our website. For all enquiries about acquiring a property, do not hesitate to contact us at South and Sttes Properties Limited.