Nigeria real estate had its own fair share of crisis during the last recession period in Q1 2016 that spanned into Q2 of 2017. Later an announcement was made by the federal government that the nation is out of recession. This announcement had gathered expectations from traders according to the News Agency of Nigeria (NAN); expectations of fall in prices of goods and services, better living standard and infrastructure development are among the things expected coupled with improve standard of living for the ordinary citizen.
Before now, according to Akintude: “…the real estate market was one of the worst hit sectors during the 15-month period of economic recession which lasted from Q1 2016 to Q2 2017. The sector saw its growth potential dim as the market was defined by low demand, widening vacancy rates, increasing case of rent service charge, defaults and slowdown in construction activities.
A renowned Nigeria political economist Professor Pat Utomi had listed all necessary steps that must be taken by the federal government to sustain the economy in the post-recession era. Professor Pat Utomi is of the opinion that though the nation is out of recession, the economic situation in Nigeria is still fragile. Utomi advised the government to effectively work closely with the private sector to sustain the recovery and to concentrate on job creation. According to him, “The government can work with the private sector to spur growth”.
Nigeria real estate sector has come under the radar again in the post-recession period, it was observed that the real estate investment in Nigeria haven’t really experienced the impact of the exit from the recession as prices are up and there is still oversupply in the market. Despite this, the real estate business has proven to be the best class of asset when it comes to investment. The market seems not to be down as stocks, shares and other equities which seems to have recorded a sharp fall in profitability during the recession. Another lucrative side of real estate investment is that why other physical assets depreciate with time, real estate appreciates with time with mouth-watering returns on investment.