Amidst Economic Challenges, Real Estate Remains a Window of Opportunities
ESV Nkechi Imobhio
Globally, both the developed and developing economies of the world are experiencing turbulent macroeconomic weathers, and this has negatively impacted economic activities, including real estate services. But on the contrary, real estate remains the safest and best form of investments in the midst of so many domestic and global economic challenges.
In Nigeria for instance, the economy is at crossroads. The economy has gone from bad to worse, and from all indications, it is not going to get better anytime soon. A quick look at the Nigerian macroeconomic indicators shows that all macroeconomic figures are in the reds. Nigeria is having its worst economic condition ever, the inconsistent and unfriendly macroeconomic policies have plunged Nigeria and Nigerians in a helpless economic condition. Only recently, annual inflation rate accelerated from for a consecutive six months to 22.79% in June, 2023, the highest since September, 2005. In a recent statement issued by the Central Bank of Nigeria (CBN), the interest rate was put at 18.75%, and at this rate, only few business concerns can approach the banks for credit facilities.
In the midst of the Nigerian economic woes, investment analysts across industries have argued that investments in the real estate sector is the way forward for those who are willing to commit their money in the Nigerian economy. They argued that the Nigerian real estate sector is a safety net for so many dwindling investments. Most entrepreneurs in Nigeria are converting their wealth to real estate for safety reasons. To these analysts, it is time for Nigerians to carefully focus on their individual economies and not really the Nigerian economy.
With the high inflation rate in Nigeria today, most properties still have their economic values fully retained, and even going for higher prices especially for properties in highbrow areas. Location, nature of property, and timing are however some of the factors that can affect the rate of a property both in inflationary and non-inflationary periods. As prices are increasing, the value of properties is going up which makes it a viable and reliable investment opportunity for any one that wants to dive into real estate. As reliable assets, properties with the right documents can be used as collateral for loans even in most challenging economic situations.
Bottom-line is that, if you are considering an economically viable investment in the Nigerian economy today, real estate investment is the right investment decision to make. The current inflationary period could present a real time opportunity to invest in a long-term asset that is lucrative now, tomorrow, and even forever.
To achieve your goals of investing in the real estate ecosystem in a period like this in Nigeria, the right professionals must be well consulted to ensure that the right things are done in your bid for property acquisitions. The challenging economic situation has forced many non-professionals into the industry. And no doubt, these quacks are predators to so many individuals who want to acquire properties without doing the right things.
ESV Nkechi Imobhio is a registered Estate Surveyor and Valuer. She is a seasoned professional in the real estate industry, and serves as the Principal Partner of Nkechi Imobhio & Company. She sent this piece from Asaba, Delta State.
