Real Estate
Demand for Property still fairly Strong Despite
Recession but…
An informal survey by CASTLES Lifestyle has revealed that demand for
property is still very strong despite the recession that has hit the economy.
However, the type and pricing of property being requested for has changed.
Interest has switched from the high-end properties to those that are deemed
more ‘affordable’. Another hallmark of the present real estate market
situation is that payment for property is usually structured with the buyer
paying over a period of time, even for completed properties.
Another interesting point garnered from the survey is that quite a number of Nigerians (resident at home and abroad) have
substantial foreign exchange and because of the exchange rate, the Naira prices are more attractive. Take the example of a plot in
Arepo which was on the market at N2m. Two years ago, this would have worked out at $13,400 but the price is now at $4,500 due
to the exchange rate going to N450/$1 at the parallel market. A Nigerian buyer who is resident in Texas, United States, snapped it
up because it was now very attractive. This type of Nigerians are quite active in the market and continue to seek for bargains. So
what is the message for developers and those who want to invest in property for capital gains? First, pricing is very important.
Purchasers are demanding the highest quality for what they are paying for. They are also ready to look outside their ususal
locations for properties that will suit their budgets.
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