2021 was quite a year for the real estate market. Despite the harsh economy and the rising cost of building materials, the industry recorded a 3.85 percent growth in the second quarter of of the year, representing its highest growth in six years. 2022 will be an especially challenging year for investors due to uncertain economic conditions, but we still think the real estate market is a healthy and profitable market. To get you through the year 2022 as a real estate investor, we have highlighted below, 8 trends to look out for.
Trend 1: Increase in rental yields
Nigeria has experienced a continuous rise in the price of rent over the past years, with an increase in the demand for luxury apartments, especially from the high-income earners, resulting in high rental yields.
While rents are much higher on the Island, rental yields are generally higher on the mainland due to the high prices in the island real estate market.
Trend 2: Increased use of video marketing
Video marketing is no doubt an excellent marketing strategy for real estate agents and it’s here to stay. Buyers expect to see a video of the property they intend to buy.
Video marketing is a tested and reliable marketing tool that helps highlight the unique features of a property. Marketers use visual content to create awareness and deliver messages through an appealing medium.
Trend 3: Millennials make up the majority of home buyers
Over the last couple of years, the real estate industry has anticipated the entrance of millennials. Millennials represent the largest cohorts of first-time homebuyers ready to enter the 2022 market. Many economists believe that the millennials would claim the top spot in the rank of the home buyers in the year 2022.
Trend 4: Return of the suburb
Living in the city can be quite tiring, Suburbs are a perfect balance between experiencing urban and rural life. The cost of living in the city is very high and as a result of this, a lot of people are turning to the suburbs to save cash.
Suburbs are usually calm and serene and for people looking for some quiet and a place to start a family and raise kids, the suburb is a safer option.
Trend 5: High demand in Low-priced homes
The theory of demand and supply is also applicable to the real estate market, this theory states that the lower the price of a product the higher the demand, which is very true because lower price drives demand. Properties with low-prices are often in higher demand than luxury apartments
Trend 6: Buyers are Evolving
There is no denying the fact Nigerians’ attitudes toward their homes have changed. Due to the pandemic and the competitive housing market from 2020 some buyers purchased their homes without stepping foot inside. The pandemic accelerated digitization across all sectors and the real estate market is no exception. In 2022 many home buyers will be doing a virtual tour/inspection tour of the their homes and purchasing their homes without stepping a foot inside. So, as real estate investor, you need to improve your virtual capabilities.
Trend 7: Technology Adoption
The real estate venture is a huge industry in many economies, despite its huge impact on economic growth, the industry has typically been slow to turn to technological advances, however, in the last few years the market has more readily embraced the technology to speed up transactions and improve efficiency. We think this trend will intensify in 2022.
Trend 8: Home staging
Buying a home is an emotional purchase, people buy houses for different reasons, an appealing property attracts high price and this where home staging comes in. Home staging is simply decorating your home to make it appealing to the highest number of potential clients.
Based on statistics staged homes sell higher than the listing price. Which means staging a home to look its best increases your chances of selling higher than the listing price.