By Maduka Nweke
Stakeholders in the building industry have adjudged the Lagos real estate market as one of the fastest growing markets, recording a growth rate of 50 per cent in commercial and residential sales between 2021 and 2023.
According to them, the giant leap was achieved through increase in demand for properties and rising purchasing power among Lagosians. Lagos, the most populous city in Nigeria has been dubbed “the commercial capital of Africa” with over 24 million inhabitants (about three times the size of London). It also has a thriving tourism sector, thanks to its rich cultural heritage and vibrant nightlife scene.
With the new Lekki International Airport, Lekki Seaport, and Lekki Free Trade Zone, there is no doubt Lagos is the next “Dubai of Africa”. Nonetheless, the overall outlook for Nigeria’s real estate sector in 2024 remains positive, driven by urbanization, population growth, government initiatives, infrastructure development, technology adoption, and Foreign Direct investment(FDI).
According to a random assessment of stakeholders in the real estate sector conducted by Daily Sun, the respondents admitted that the industry has recorded considerable growth over the years.
Principal Partner, M.I Okoro and Associates, Mr. M.I Okoro, quoting industry report, said that in 2017, the Nigerian economy grew by 3.2 per cent, which was far higher than the average 2 per cent growth rate of other African countries, adding that this is expected to continue over the next 10 years with projections showing that Nigeria will be among the top 10 economy by 2030.
He noted that while this growth in Nigeria could be attributed to many factors such as real estate developments across the nation, innovations, and demand for shelter due to population growth among others, one thing remains shocking- “There are more people searching to buy homes or landed property than we used to have, and this results in price increase for properties across the country,’’.
For that reason and many more, the real estate market was altered in 2023. The industrial areas are going to be the new residential areas. More people worked in those places than anywhere else, and they had more amenities than residential areas. They were more developed, accessible and even more modern.
According to him, as the population of the country continues to grow, one should expect a corresponding increase in demand for housing.
In 2024, Nigeria’s population is expected to reach a little above 300 million people, a number that will likely require over four million homes. The majority of this growth will occur in urban areas where property prices are higher with potential for more jobs.
Okoro noted that if any recession arises again, there is going to be a downturn, which will affect the state of the economy and more importantly the real estate sector more than ever before because many buyers choose to wait before buying a property because they feel that prices may go up in future but this is not the case anymore as a result of fluctuating exchange rate and the depreciation of the naira. In his submission, an estate developer, Mr. Morouf Mogaji, said the invention of layer printing technology which is gradually replacing brick-and-mortar which has supported the growth of real estate development, leading to the invention of other materials used in building technology.
He said that layer printing technology is a promising new way to build homes as it can be used in remote areas, where brick-and-mortar construction is impossible to initiate.
He added that the technology also allows for the creation of houses with poor infrastructure or access to materials.
For example, it can be used to create structures that don’t require foundations or other building materials that may not be available locally.