All things being equal, there is a forecast indicating that the diaspora market will contribute significantly to the growth of the real estate sector in 2024.
According to the Executive Director, Housing Development Advocacy Network (HDAN), Festus Adebayo, the issue of the high cost of building materials and inflation in Nigeria’s economy would make the diaspora the biggest target for the real estate market in 2024.
Talking about the factors that would drive the property market this year, he emphasized that the diaspora market would really boost demand, leading to a more robust real estate market.
To fast-track the process, Adebayo said that many events to attract investors into Nigeria’s real estate market in 2024 have been outlined to hold in the United Kingdom, United States of America, Canada and in the rest of the world.
Still on the factors driving property market locally, he said the arrival of politicians, technocrats, and their aides in FCT has led to an increased demand for rental accommodation.
With the commencement of a new administration, he said that contracts would be awarded, adding that funds would be released for existing contracts. “This means that businessmen and contractors will have enough funds from the proceeds of their various businesses and contracts to purchase a property.
“However, the surge in property values is proving to be a challenge for many Nigerians who cannot afford the high-end prices. This surge in property prices is due to estate developers, landlords, and property agents who are cashing in on the high demand for housing,” Adebayo said.
“This is an encouraging indicator for the housing market since economic growth usually leads to rising incomes and an increased demand for homes. However, it is essential to recognize that if there were a downturn or recession in the economy then it could significantly dampen demand for houses. Thus, achieving stability becomes pivotal as it can either bolster or hinder the performance of housing markets in 2024,” he said.
He noted that the delicate balance between supply and demand would continuously drive trends within the real estate industry as well as holding significance towards future developments, urging stakeholders to expect a similar scenario in forthcoming years.
This, he said would center around limited availability pertaining land resources alongside ascending construction costs compounded by an ageing population, which is less likely sell their properties resulting to scarcity.
Based on the current blueprint being laid by the current administration, Adebayo said the industry was set to witness tremendous development.
He said “The new Minister of Housing has started on a good note. He has constantly assured us of government’s support towards the development of the sector and I can predict that we will witness improvements in the performance of the sector.
“The minister will in the first month of January begin work on the various policies initiated to move the sector forward. I am aware that four committees will be inaugurated and they will address various areas that will contribute to real estate development in Nigeria.
“A major ingredient that has been lacking in recent times is solid government’s support in the area of mortgage development, raising funds from capital market, access to land, among others. “This will be tackled headlong by the new ministry of Housing and Urban Development.”
Adebayo also commended the partnership between the new leadership of the ministry and the Nigerian stock Exchange, hailing it as a collaboration that will unlock the potentials of the stock market.
He also called the attention of the ministry to data gathering having signed MoU with the Nigerian Population Commission (NPC)
He also called on state governments to invest in the housing sector in their respective states to contribute in repositioning the sector.
He also urged the leadership of the FCT Minister, NyesomWike, to invest in the infrastructure of the city and end so many cases of land grabbing.
This effort, he said would create an enabling environment for the private sector to thrive.
“With our requests, we can predict an improved real estate sector in 2024,” Adebayo said.
