Nigeria’s recession has been official for two months and most experts agree that it’s the worst one we’ve had in a decade. “I doubt whether there is any need to say that Nigeria in the past 15 months has gone through probably its most challenging period in recent history,” Vice President, Professor Yemi Osinbajo lamented while speaking at the 2016 presidential policy dialogue session organized by the Lagos Chamber of Commerce.
The good news is, it can only get better from here on and the government has started to make the right financial policies as well as adjustments so that we’re all better for it in no time. The recession coincides with the bust of the housing bubble in Nigeria, especially in the major cities of Lagos, Abuja and Port-Harcourt. The demand for real estate has waned over the past 5 months leading to as much as a 40% decline in prices of properties in those cities. The vacancy rates have also increased by over 70%. Luxury apartments in areas such as Lekki, Maitama, Ikoyi, Lugbe, and Trans-Amadi have been left vacant for months and are now available at knockdown prices.
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the economic recession in Nigeria, which is taking a toll on all sectors of the economy, has caused major shifts in demand, supply and pricing of real estate assets, creating an attractive investment opportunity for funds looking beyond the recession and high-risk investors with patience. Rents for residential and commercial office property in Lagos, the country’s commercial market.
Many Nigerians do not have an accurate precision of investment now because almost everything is falling apart. Investing in the importation of goods and luxury items. Almost all businesses are crumbling. Employees are at a high of losing their jobs at slightest mistakes. People are trooping into interview board rooms. Husbands are becoming more aggressive. Wives are becoming more careful. The rates of crime and terrorism, are increasing and vacant properties are increasing.
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Yet, many have not realized that his is the best time to invest in real estate. Since vacant properties are highly increasing, owners of these properties are ready to let go of them so as to invest the funds in other businesses. Investing in real estate can be like the new MMM scheme. Definitely, the recession period will end, but at the end of it, property owners may either be winners or losers. So if you have sold a property during the recession period, you may not be smiling after the recession. However, if you buy a property during the recession period, you may be laughing out loud.
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Building during this season also costs a lot. The cost of building materials is very high these days. While there was a recent ban on importation some building materials, there is a tendency that the prices of these materials may still skyrocket because smugglers may see it as a way to make money. They may be working tirelessly for that cause.
It’s very easy to buy an apartment in Nigeria. Buy one now, and make a huge profit after the recession. Visit www.tolet.com.ng
Credit: Jolaosho Aderinsola and Temiloluwa Durojaiye
