Nigeria’s youth are the country’s real estate’s best hope. but not in the manner you imagine. A more vibrant, young working population is emerging as a result of growing concerns over Nigeria’s explosive population rise. Young people are getting more agile and taking on more risks by starting their own firms, from digital companies to hipster restaurants. Young professionals are choosing shared living and working spaces over traditional, pricey office and residential arrangements because of their flexibility and cost benefits. Since mobile technology has given consumers more control, the real estate sector is being compelled to innovate and reinvent its value proposition. This article will delve into the future of Real Estate in Nigeria and the trends to watch out for.
The residential, office, retail, and hospitality real estate submarkets all continue to have a substantial supply-demand disparity. University students and young professionals have few and frequently risky housing options, and there are still few secure, reasonably priced office premises close to the key business centres. In spite of high vacancy rates and declining prices, developers continue to prioritize the delivery of luxury apartments and Grade A offices, making it challenging to close this gap.
The old ways of doing so are too far out of the reach of many people, and the system needs to change. Real estate investments offer citizens the chance to engage directly in the economy. A go-it-alone ethos, difficult title registration procedures, and a lack of accessible financing options are just a few of the issues that have served to restrict participation. Nigeria’s government has to aggressively promote policies that encourage public and private financial institutions to offer creative, cost-effective financing solutions, freeing dormant capital, and reopening access to the industry in order to revitalize this sector and strengthen the economy.
Nigerians still rely on developers to satisfy their unique demands, likes, and preferences. Our youth are adapting their lifestyles, careers, and shopping habits in response to rising costs and technological advancements. It is clear that a redefining of what value means is necessary for the industry’s future as Nigeria’s real estate market recovers and stabilizes. To do this, new strategies must be created and seamlessly implemented in order to meet the rising demand for flexibility while ensuring sustainable returns on investment.
Future Trends of Real Estate In Nigeria
A new trend that cannot be overlooked is the demand for alternative real estate alternatives for a new peer-to-peer-based economy, including student housing, co-living, co-working, and even crowdfunding. The players who can adjust and remain adaptable enough to meet these needs will be the ones who survive the impending paradigm shift. The UACN Property Development Company (UPDC) is embracing innovation wholeheartedly. With its planned recapitalization, the company is reaffirming its belief in and support for the Nigerian real estate sector. With a solid track record of successfully completing landmark developments, UPDC has already established itself as one of Nigeria’s leading indigenous real estate companies. Leveraging the recapitalization, which will put us in a sustainable financial position, UPDC aims to build on this track record. Without a considerable amount of short-term debt, we will have more operating flexibility, which will allow us to tap into new financial sources and improve our market position.
It will take teamwork to revitalize the sector. Nigeria in particular and the rest of the world currently confront a pressing population crisis. It is a matter of national importance to respond appropriately to the present and future real estate infrastructure needs of roughly 200 million people, as doing so will determine and immediately affect the benefits we get from a rising youthful population. The Nigerian story is optimistic, but as we pen it, we must reflect on the errors of the past and make sure we are prepared to avoid them by providing facilities and services that are fundamentally, physically, and financially suitable for the Nigeria of the future.
The patterns and modifications that take place in the real estate market are referred to as real estate trends. These patterns can affect property values, the kinds of homes that are in demand, and the areas where buyers and investors prefer to invest. A wide range of variables, such as monetary conditions, demographic shifts, and governmental regulations, can affect real estate trends. Common real estate trends include the increase or decrease in property values, the popularity of specific areas or towns, and the advent of new construction techniques or architectural designs. Making informed decisions regarding the real estate market can be facilitated by an understanding of real estate trends by buyers, sellers, and investors.
It’s crucial to review what real estate is before we discuss these patterns in more detail.
Real Estate: what is it?
Land, buildings, and any other constructions that are affixed to it permanently are all considered real estate in Nigeria. It also refers to any natural resources that are present on or beneath the land, such as water and minerals. Real estate is a commodity that people may purchase, sell, and possess. They can use it for a variety of things, including living, working, and having fun. Depending on its intended use, real estate can be divided into a variety of categories, including residential, commercial, and industrial. In contrast to commercial real estate, which comprises structures and properties utilized for businesses like offices, shops, and hotels, the residential real estate contains houses and apartments where people actually live. Properties utilized for manufacturing and other industrial processes are included in the category of industrial real estate.
The market for luxury real estate has advanced significantly and is expected to grow substantially in 2023. The luxury real estate market caters to a certain customer and displays unique patterns that differentiate it from the rest of the sector. Among them are: 1. Home quality
The future trend in housing quality is difficult to anticipate since it will be influenced by a number of variables, including prevailing economic conditions, technology developments, and shifting customer tastes. However, it’s possible that the demand for houses with smart home technologies and high energy efficiency will continue to rise. It’s possible that more and more people will search for homes that are constructed with energy-saving features and materials and that are outfitted with smart technology as concerns about the environment and energy expenses continue to rise. In addition, it’s possible that new technologies and building materials may be developed that will help to raise the calibre and longevity of dwellings. It’s also feasible that a stronger emphasis will be placed on creating homes that are more flexible and adaptable so that they can better accommodate homeowners’ changing needs over time.
Living in gated communities with top-notch amenities has grown in popularity. A few examples include rooftop yoga decks, outdoor gyms, jogging tracks, multipurpose games courts, amphitheatre-style sit-outs, swimming pools with kid-specific wading pools, steam rooms, biodiversity zones, mini-theatres, banquet lawns, and rooftop barbecue areas. Homes that guarantee a comfortable living and overall welfare are in high demand.
More and more individuals are searching for homes with energy-saving features and materials as environmental and energy-cost concerns have increased. This can include items like insulation, solar panels, and energy-saving appliances. The increasing acceptance of smart home technologies is a further trend that has been seen. Smart thermostats, security systems, and other sorts of technology that can make people’s lives simpler and more convenient are already commonplace in houses.
Access to Infrastructure
Homebuyers typically avoid lengthy commutes and want to reside close to excellent infrastructure, such as major roads, malls, business districts, airports, and train stations, in order to save time and increase convenience.
Sustainable Architecture and Closeness to Nature
As individuals become increasingly aware of climatic changes, sustainable design concepts are becoming more popular. For new construction to be as sustainable as practical, it requires both meticulous planning and an openness to embracing and experimenting with the most recent technology.
See The Future of Real Estate in Nigeria – Properties By Switchlanes Investment Limited
Conclusion – The Future of Real Estate in Nigeria
Due to the aforementioned factors as well as a number of other factors, the luxury industry has seen phenomenal growth over the last couple of years with no signs of a slowing in demand. The results of the future of Real Estate in Nigeria show that in the following months, sales volumes may likely surpass all previous highs, and the atmosphere is still upbeat.
You can also read more on Business Day on the Path to a Sustainable Economic Future in Real Estate