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Harsh economy situation affecting Nigerian Real Estate Market

As the effects of COVID-19 are felt around the world, real estate companies are being impacted in different ways, largely dependent on region and asset class. In the near-term, real estate executives are concerned with preserving value and liquidity, attracting investors, including complying with governmental agency requirements. Experts in the real estate have further expressed worry that the sector which recorded growth towards the end of 2019 has receded due to uncertainty in the country.

Mr Nwafor Chibuzo Franklin, the founder Frank Realtor Limited, a real state agency based in Abuja Nigeria, have appeal to the government to support the real estate business owners especially in this period of economic downturn. According to him, the major issue that continues to affect housing in Nigeria include constraints related to the high cost of securing and registering secure land title, inadequate access to finance, slow administrative procedures and of course the high cost of land.

President Given these challenges, Franklin said, a sustainable action plan is required to reduce the housing gap in the country, noting that some efforts have been made, but there is a need to bring it all together.

“The harsh economic situation in Nigeria is really affecting the real estate business. The reality could also be seen from the number of property listed for sales without positive outcomes. As a result, trillions of naira, which could have been used to boost the economy are stuck in the sector which has been considered one of the good things that happened in Nigeria before the recession. Accessing some of the documents for procuring lands are becoming a burden. Government operatives in charge are not doing enough to ease this pressure which has had a negative impact on real estate business. Complaints have been registered but more efforts are needed to get the government attention to help resolve this issue”.

He said. He added that in line with the government order to stay at home to limit the spread of COVID-19, his company have built an online platform where investors can easily explore and take part in some of the company’s business offers.

“Following the order from the federal government to limit social gathering, my company have built an alternative solution that helps investors easily go through our portfolio online and pick any of their choices ”.

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