It is no longer news that inflation is currently ravaging Nigeria, affecting all economic sectors of the nation, including the Nigerian real estate sector. With this, experts insist that there is no better time to invest in real estate than now.
The experts, who spoke with Nairametrics in separate interviews explained that every investment in the sector can only appreciate, as it cannot depreciate.
They insist that though inflation is currently ravaging the economy, the money invested in the sector will not depreciate but appreciate.
What they are saying about the sector
Ayobami Kareem, Chief Executive Officer of Whiterose Properties, said, “The Inflation ‘cancer’ currently ravaging the country is, no doubt, negatively affecting all the economic sectors of the country, the real estate sector inclusive.
“However, there is still no better time to invest in real estate than now. This is because any investment in real estate can only appreciate, as real estate never depreciates.
“Hence, inflation can actually be a blessing in disguise for real estate investors due to the speedy rate of appreciation of real estate this period, thereby guaranteeing a bountiful return on investment for investors within the shortest possible time.”
Chief Executive Officer, Octo5 Holdings Limited, Jide Odusolu, explained that investors can take advantage of foreign exchange fluctuations to invest with a long-term focus on assets around the Lagos and Abuja axes.
He said, “We believe that this is the time to invest, especially in Lagos and Abuja markets. For those with access to FX earnings, we believe that it is a bet worth considering for the long-term.
“The volatility in the foreign exchange regime means that with smaller dollar sums, you can buy significant assets below value, especially in the middle market sector with massive unmet demand.
“Real estate investment remains good protection against the high inflation rate and has proven to be resistant to erosion of value. Our philosophy is summed up by the conviction that a smart investment made at the right time will always appreciate in value.
“The realities of the Naira devaluation on everyday Nigerians continue to bite. However, many households and businesses have seen a huge spike in the costs of goods and services, which has taken a toll on disposable income which many Nigerians can save or invest.
“We believe that this is the time to invest, especially in Lagos and Abuja markets. For those with access to FX earnings, we believe that it is a bet worth considering for the long-term.”
What you should know
- Nairametrics had reported that Nigeria’s inflation rose to its highest level in 11 months, rising from 16.82% recorded in April 2022 to 17.71%. This is according to the recently released Consumer Price Index report, released by the National Bureau of Statistics (NBS).
- The consumer price index, which measures the rate of inflation rose by 17.71% year-on-year in May 2022, which is 0.89% points higher than the 16.82% recorded in the previous month (April 2022). On a month-on-month basis, the headline index increased by 1.78% in May 2022, compared to the 1.76% increase recorded in the previous month.
- Similarly, the urban inflation rate increased to 18.24% (year-on-year); this is a 0.27% decline compared to 18.51% recorded in May 2021. On the other hand, the rural inflation rate increased to 17.21% in May 2022 (year-on-year) basis; this is a 0.15% decline compared to 17.36% recorded in the corresponding month of 2021.
