REPORT HIGHLIGHTS RESILIENCE OF NIGERIA'S REAL ESTATE SECTOR IN 2022
Despite the challenges faced by Nigeria's economy in 2022, the real estate
sector exhibited resilience and achieved a commendable performance, according to the seventh edition of UbosiEleh 2023's report titled 'UbosiEleh report overviews real estate in 2022.'
The report highlighted that despite inflation reaching a record high of 21.09 per cent and the upcoming general elections in early 2023 affecting real estate activities, the sector managed to maintain an average performance on its scorecard.
In the residential sector, short-term transactions experienced a slowdown due to rising costs, even though it enjoys significant incentives. Conversely, in the commercial estate sector
, the challenges in the market for commercial office space prompted developers to opt for mixed-use projects. Interestingly, the hospitality subsector of commercial real estate
witnessed a notable upturn, rebounding after two years of being negatively impacted by the COVID-19 pandemic.
A notable trend observed in the real estate
market was the increased focus on the development of one and two-bedroom flats, as these smaller-sized accommodations are preferred by millennials with lower budgets.
The report also indicated that rental values for selected accommodation types and commercial real estate
across the states of the federation in 2022 remained either the same as the previous year or experienced slight variations. It asserted that real estate performed better than expected in many instances, defying expectations of a slump.
Looking ahead to 2023, the report remains optimistic, stating that real estate
continues to be the asset class of choice in Nigeria, despite the challenges faced by the sector. It anticipates that economic activities, including real estate
, will pick up once the new government takes over the reins of power.
In conclusion, the UbosiEleh 2023 report sheds light on the real estate sector's resilience amidst economic challenges, showcasing its ability to overcome adversities and maintain a steady performance. With a promising outlook for the future, real estate
remains a preferred investment option in Nigeria, poised for growth and development in the coming years.