According to a recent assessment, property developers would have to spend more this year to create their own infrastructure, given the poor status of federal highways and the cost of maintaining current ones.
According to the seventh edition of the Ubosi Eleh 2023 Report, the allocation of N398.28 billion made to the Ministry of Works and Housing from the national budget of N20.71 trillion was extremely inadequate, especially for a ministry that is heavily capital driven.
According to the study, the low budget meant that there would be little room for capital projects in fiscal year 2023. It contends that Nigeria’s economy, the largest in Africa, has shown resilience and renewed hope, while real estate, in particular, performed well on the scorecard.
According to the research, with inflation reaching an all-time high of 21.09 percent and the country preparing for general elections in early 2023, real estate activity has suffered. Despite massive incentives, the residential sector of the real estate market witnessed slower short-term transactions due to growing costs.
Due to the problems in the market for commercial office space, developers in the commercial estate industry chose to create for mixed-use developments. However, after being badly hit by two years by the COVID-19 epidemic, the hospitality subsector of commercial real estate experienced a substantial upturn.
One notable trend was the renewed emphasis on the creation of one- and two-bedroom flats, which are chosen by millennials due to their smaller size and lower costs.
According to the poll, rental values for selected rental accommodation types and commercial real estate across the federation for 2022 were either the same as the previous year or increased somewhat. According to the analysis, real estate performed better than projected in many cases, which is why the expected fall did not occur.
According to the report, Lagos and Abuja have gained the most from real estate investment due to the country’s high degree of insecurity, and this trend is expected to continue. Among its expectations is a positive and high demand for medium-sized retail space for shopping complexes, shopping centers, corner and neighborhood businesses.
According to the survey, rental demand would rise by up to 10%, particularly for flats, with demand increasing as the year progresses.
The survey also predicted that the market would stay weak throughout the year, with a possible return in 2024 depending on the status of the economy.
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