The past two to three years have not exactly been great for Real Estate market in Nigeria. This resulted from a tough 2016, characterized by inflation, weak currency, recession, declining GDP and reduced government spending. Generally, rising interest rates make buying or selling in real estate more difficult while decreasing interest rates make buying and selling easier. Unavailability of cheap funds and high interest rates further deepened the crisis and worsened the situation.
This also resulted in oversupply, low demand, high vacancy rates and poor returns especially in the retail market and commercial sector of the industry. After surviving the storm and coming out of recession in the last quarter of 2017, activities have been rekindled and the real estate sector has been on its way to recovery, albeit in small steps. Confidence is being restored and investors are keeping up with the trends, while closely taking note of the opportunities that currently exist in the market. Though it may take some time for the market to reach its full potential, the following investment options exist and have a good return on investment at the moment:
Read full article on Page 19 and 20 of the June edition of Capital Markets Africa Magazine