Despite the reassuring GDP figures from the just released Q3 2017 report there are still palpable fears in the real estate sector of the economy. According to Industry experts, the sector is yet to come out of recession.
The real estate market is often the worst hit in times of recession and also takes a longer time to pick up unlike other sectors.
Findings reveal that despite several innovative options that had been made available to buyers, developers were still unable to sell off or lease properties.
According to the National General Secretary, Real Estate Developers Association of Nigeria, Mr. Akintoye Adeoye, said investors, especially those in the residential sub-sector, had yet to feel the impact of a rebound in the economy.
“As developers, we haven’t felt any change in the economy. It is still the same as it was about one year ago when the recession was biting hard. Many houses are still vacant despite the fact that developers are becoming very innovative with offers to investors.“We have come up with offers some of which allow subscribers to pay between 20 and 30 per cent deposit, move into the houses and spread the balance over four to six-year period. But despite this very generous offer, many subscribers are not forthcoming, because they are unable to come up with the deposits even on houses as cheap as N9m.”
The Principal Partner, Kola Akomolede and Co., a firm of estate surveyors and valuers, Chief Kola Akomolede, said it might take up to the third or fourth quarter of 2018 for investment in the real estate industry to return to normal, adding that this was also subject to a continued improvement in the economy.
“Investment in real estate takes time to respond to economic issues. Like economists will say, demand and supply are inelastic. So, it will take time for the market to react to the economy’s exit from recession.
He however advised that this was the best time to invest in real estate as well as construction activities.
“Whoever has the capacity to build should go ahead with construction because when the market begins to boom again, they will look back and realize they made the right decision. Same goes for those who can afford it and wish to buy houses; there is no better time than now to do that,” he added.
Reacting to this development a Lagos-based financial expert Mr. Rewane Bismack noted that It will take a minimum of 18 months for Nigeria to get out of recession, and signs of recovery will start showing in 2017
With the best policies.“Nigeria will start showing symptoms of wellness by 2018, Nigeria will be well again.” He assured.