Monday, 15 March 2021

IS NIGERIAN REAL ESTATE IN A CATASTROPHIC STATE COMING FROM 2020?


The Forbes article titled, Real Estate was a Catastrophe in 2020- makes for interesting reading for professionals and investors alike even though it was focused on the US market. We have outlined a few simple trends to pay attention to in our jurisdiction.
 
BRIGHT SPOT FOR FAMILY RESIDENCES

Real Estate in Nigeria and across much of West Africa though not as Sophisticated- however much of the trends reflected in the Forbes article under reference, will apply especially in the Residential sector with more families becoming more intentional about the quality of their homes as they continue to spend more time working and playing from home- with the 60 hour weeks mostly gone for a very long time.

 

We will definitely see an increase in transactions for single family homes, as younger families and some retirees move to less expensive suburbs and outskirts . This is as a result of more people enjoying the flexibility of remote work and no longer see the need to commute relentlessly, subjecting themselves to environmental and health hazards.

 

PRIME CENTRAL LOCATIONS- Way Forward

Central location high rise/ or multi residents type living will also see an increased demand of prop tech enabled service delivery such as contactless everything to reduce the risk of contact and contamination in high density residences. In addition, residential spaces that take into account new living realities and preferences of home buyers, tenants and investors  with more intentionality and intelligence will remain relevant. Customisation and flexibility especially for high end luxury developments will become even more realistic as a success strategy.

 

COMMERCIAL CHALLENGES

Commercial spaces will continue to be the hardest hit, even when retail and hospitality begin to bounce back in a post COVID world. New office configurations will be required for emerging flexible work -remote trends, while tenant landlord collaboration will become more important to retain good quality tenants and maintain occupancy.

 

A DIGITAL FUTURE FOR REALTORS AND CLIENTS

Finally brokers, agents need to get with the times- upgrading the outlook for client viewings to virtual more digitally driven than physical at least for the most part. Convenience and technology enabled interactions across board including remote closings, and digital contracts signing will most likely play a huge impact in dealing with clients going forward.

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