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Are Properties in Nigeria Cheaper During the Recession?

When there is a fall in GDP in two successive quarters, it is usually referred to as a recession. It is a temporary economic decline through which trade and industrial activity are reduced.

The Nigerian economy has suffered a great retrogression this last quarter. This is as a result of the fall in prices of crude oil, the devaluation of the local currency and some unfavourable government policies.

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Today’s National Mirror titled, “Mitigating recession through sustainable housing investments” posed housing as the solution to the recession in Nigeria. According to the Governor of the Central bank of Nigeria, CBN, Mr Godwin Emefiele, he says: “If the housing sector can contribute over 80 percent to GDP in the United States of America, USA, it can also improve the nation’s economy significantly. If you look at the housing market in Nigeria and in Africa, compared to the more developed economies, you will find that the housing markets in Africa are indeed largely underdeveloped.

Explaining further, the CBN Governor said the housing sector in the U.S. represented the highest financial assets in the world, as it is the highest contributor to its combined capital market, adding that it represents a higher subsection of the country’s economy.

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Already, the Federal Government noted that Chinese companies had sealed a $250 million deal with Nigerian government to develop an ultra modern 27-storey high-rise complex as well as $2.5 billion agreement for the development of Lagos Metro Rail Transit Red Line project.

Housing in Nigeria has developed over the years. Yet, there has not been adequate development. Comparing the state of the national economy and the percentage that real estate contributes to the GDP. Housing, as we know is one of the basic amenities that humans need. So, unlike investing in secondary products investing in housing will be a big solution to the recession.

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Now, back to the question. Houses in Nigeria are cheaper during the recession. Because most house owners are ready to sell their properties at affordable rates to generate funds. Thus, investing in housing is not limited to high-income earners, but it’s also opened to middle-class Nigerians.

So if you are considering a good business to invest your funds in this season, try out housing. Visit our website www.tolet.com.ng today to purchase affordable properties.

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