Nigeria’s real estate sector remained resilient and recorded average performance in 2022 despite the challenges in the economy.
This was stated in UbosiEleh 2023’s seventh edition report titled ‘UbosiEleh report overviews real estate in 2022’.
“The UbosiEleh 2023 Report, now in its seventh edition, posits that Nigeria’s economy, the largest in Africa showed resilience and renewed hope while real estate in particular, recorded average performance on the score card,” it stated.
According to the report, with inflation rising to an all high at 21.09 per cent and the country gearing up for the general elections in early 2023, real estate activities were adversely affected.
The residential sector of real estate market experienced slower short term transactions because of rising cost despite the fact that it enjoys enormous incentives, it said.
In the commercial estate sector, owning to the difficulties in the market for commercial office space, the report said developers chose to build for mixed use projects.
However, the hospitality subsector of commercial real estate had a significant upturn after being negatively impacted for two years by the COVID-19 pandemic, it said.
It stated that, “One noticeable trend was the renewed emphasis on the development of one and two bedrooms flats which is the preferred accommodation for the millennials due to their smaller size and lower budgets.
“UbosiEleh survey also indicated that the rental values for selected rental accommodation types and commercial real estate across the states of the federation for 2022 was either the same as in the previous year or had slightly varied increase. The report opined that real estate performed better than expected in many instances and that was why the expected slump did not happen.”
It added, “The outlook of the report for real estate in 2023, now in the seventh month is nonetheless promising, emphasised with the comment that real estate remains the assets class of choice in Nigeria, the various challenges notwithstanding.
“It indicated that economic activities generally and by extension, real estate would pick up when the new government had taken over the reins of power.”