The year 2021 was the most unusual year for the housing market in Nigeria, The sector recorded a 3.85 per cent growth in the second quarter of 2021, which means the highest growth in six years despite the rising exchange rate, inflation and rising cost of building materials.
Experts say there is growth on the way for the real estate sector in 2022, as they hinge the expectation on the federal and state governments’ initiatives and interventions in the housing sector.
Though the prices of properties in Nigeria keeps rising when there is no balance in the market which simply means a period when the demand for properties isn’t equal to supply. When the available properties to choose from are few, accompanied by huge demands for them then the result is an increase in real estate price.
The uneven margin between the demands and supplies isn’t just the only reason, other factors such as the cost of raw materials, cement, reinforcement, paint just to mention a few all contribute to the rising prices in housing in Nigeria.
The good news is that the second quarter shows signs of pressure easing with more new property listings coming to the market compared to a year ago, giving buyers some fresh choices and relief in the pace of price growth.