By Cynthia Alo
Real estate investments may be facing challenges in return on investment as potential investors, especially Nigerians in diaspora, are said to be diverting to holding foreign currency assets in Nigeria.
This was disclosed by Keji Giwa, the founder of Digital Landlords and ShortletHomes, who noted that Nigerians in Diaspora are not just high-income earners, but significantly contributing a whopping five per cent to Nigeria’s Gross Domestic Product, GDP.
He said: “While the diaspora market clearly presents a huge opportunity to fund the Nigerian real estate, there is little attraction for investors to want to invest today out of the funds remitted to Nigeria each year from the diaspora market.
“The bad news is that investments into real estate have started to dwindle as more people start to realise it is better to invest in dollars or pounds rather than in naira.”
Commenting on how to fix the current issues, he said: “Developers hold the key to making real estate in Nigeria attractive to Nigerians in diaspora. Nigeria is fast becoming the destination hub for indigenous tourist every easter, summer and what is now called dirty December. Property developers should focus on recreational real investment to attract tourism and recreational activities. This will boost the recreational short let market which can generate as 30 per cent Return On Investment for investors.”