Regardless of the current challenges, the real estate landscape presents opportunities for local and foreign investors, writes CHINEDUM UWAEGBULAM.
Conversely, the commercial real estate sector exhibited a mixed performance, while prime office spaces, despite a surplus, maintained occupancy through landlord adaptation strategies. However, the retail sector wrestled with inflation and currency concerns, strengthening the shift towards smaller local projects and naira-denominated rentals.
According to him, the retail sector is facing challenges due to a combination of inflation and foreign exchange concerns, reducing consumers’ purchasing power, who have gravitated towards affordable essential goods rather than luxury items and making it difficult for businesses to operate profitably.
He said the expectations will be predicated mostly on the economy. “Investments in residential and industrial properties are likely to continue. Rents will continue to rise, particularly in choice locations, while commercial spaces and retail segment of the market will experience slow growth in rentals,” he added.
He said the major obstacles confronting the industrial real estate market is lack of infrastructure improvements and urbanisation, unstable economic conditions, high operating expenses, red tape and bureaucratic obstacles, and security concerns. To boost the industrial real estate market performance, he appealed that the government resolve these issues.
The former Chairman, Nigerian Institution of Estate Surveyors and Valuers Faculty of Estate Agency and Marketing, Mr Sam Eboigbe, said the real estate sector experienced an increased volume of activities, especially in residential and homeownership segments, except for the humongous challenges posed by the unstable exchange market where the dollar gained uncommon advantage over the naira.