The Nigeria Real Estate Sector has come a long way from a decade ago. The ever growing population and the need for a decent living environment has catapult this sector to an all time high aided by the evolution of information technology that now enable people to be in the comfort of their room and purchase properties without the hassle of going from one site or the other as video conferencing, virtual meeting now enables transactions even in the real estate sector in Nigeria.
The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.
Nigerians from all sphere of life have come to the realisation that investing in something that only appreciates as the years go by is not an opportunity one would want to miss.
The Interesting thing to note is that this revolution have been spearheaded by young adults who have find ways to add value to the Sector even amidst the harsh economic reality in the country.
The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.
Residential Real Estate
The residential real estate seems to be getting the biggest attention in Nigeria as many people individuals strive to invest in properties at various locations in the country, the Nigeria population is growing at an alarming rate and this growing population are seeking for apartments and houses to lease.
Locations like Lagos and Abuja, Rivers State have seen the highest rise in residential property development in Nigeria as apartments in these location can go for as high as a # 1 million naira per annum in suburbs area and as a # 5-10 million naira in opulent locations like Lekki, Maitama, Asokoro, Banana Island and so on.
Recently, popular musician David Adeleke popular known as Davido recently acquired a land worth # 4 billion naira in the new Eko Atlantic area which he said would be used to build a residential home for his family; this is one of many untold story of property transactions worth billions of naira going on a daily basis.
Commercial Real Estate
Commercial real estate are properties used exclusively for business-related purposes or to provide a workspace rather than a living space. Most often, commercial real estate is leased to tenants to conduct income-generating activities.
Another area of the Nigeria Real Estate Sector gaining much waves is the commercial real estate, many business rent office space in different location all over Nigeria especially startups and business that don't have the necessary resources to acquire land in an areas key to their customer base.
Government agencies also leases commercial properties in different locations all over the country; this in turn has helped in catapulting the commercial estate sector in Nigeria.
Commercial real estate properties typically have longer lease terms than rental residential properties, with retail and office spaces having the longest leases averaging 5-10 years, compared to typical residential apartments or homes that may be leased for six months to a year.
By The Numbers
According to statistics.com the value of the World Real Estate market is projected to reach US$2.26tn in 2024.
Residential Real Estate dominates the market with a projected market volume of US$1.93tn in 2024.
The value is expected to show an annual growth rate (CAGR 2024-2028) of 7.52%, resulting in a market volume of US$3.02tn by 2028.
According to market research by IBISWorld, total revenues for the oil and gas drilling sector came to approximately $4.3 trillion in 2023. The real estate sector is growing year on year and unlike the energy sector the prices of properties rarely crash and this has helped in securing investment in the sector.
In Nigeria you can now get a land for as low as #500,000.00 in states like Oyo, Kwara, Delta, Kogi, Ogun State; while in location like Lagos, Abuja, Port-Harcourt lands sells from # 1,000,000.00 and above; some of the property firms have gone the extra mile to create avenue that enable people to pay this money in installments for a particular period of time.
Expert Opinion
Okoko Wisdom PassionOrbit Africa Properties LTDwww.wisdomokoko.comFacebook: Orbit Africa Properties LTDX: Orbit_africaInstagram: Orbit.africaLinkedIn: Orbit Africa Properties
The real estate industry in Nigeria has undergone a significant revolution in recent years, driven by various factors such as technological advancements, changing consumer preferences, and government policies.
One of the key drivers of this revolution is technology. The rise of internet connectivity has eliminated the need for physical visits to multiple properties, saving time and effort for both buyers and sellers.
Another aspect of the revolution in Nigeria's real estate industry is changing consumer preferences. The younger generation is increasingly seeking modern amenities, such as smart homes with integrated technology systems. Developers are responding to this demand by incorporating these features into new construction projects.
Government policies have also played a role in transforming the real estate industry. The introduction of the Real Estate Investment Trust (REIT) framework by the Securities and Exchange Commission (SEC) has increased liquidity in the market and provided opportunities for small-scale investors to participate in large-scale projects.
However, despite these positive changes, challenges still exist within Nigeria's real estate industry. Issues such as inadequate infrastructure, lack of proper land documentation systems, corruption continue to hinder its full potential.
In conclusion, the revolution in Nigeria's real estate industry driven by technology advancements, changing consumer preferences, and government policies has brought about significant changes in how properties are bought, sold, and managed.
Conclusion
While we can't say the real estate sector is on the same level with the energy sector (crude oil), it is important to know that the estate sector is ever growing and with market volume projected to hit US$3.02tn by 2028 investing in real estate now might just be the wisest choice one can make for his/her future.
Real Estate over the years proven to be a way of rising from financial struggles and path to wealth and success with dedication and determination
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