Abuja, July 13 (Viewpoint Housing News) – The Chief Executive of Superite Africa, Sunday Ifijeh has revealed that economic instability and inflation are major concerns facing Nigeria’s real estate sector.
He said the real estate industry has experienced rapid growth in recent years, attracting both local and international investors. However, economic instability he said, poses a significant hurdle to its sustained progress.
“The Nigerian real estate market is heavily influenced by the overall economic climate. When there is instability in the economy, it affects the purchasing power of potential buyers, which directly impacts the demand for properties”, Business Day quotes Ifijeh.
While admiting that the effects of economic instability reverberate throughout the industry, leading to challenges for developers and investors alike, Ifijeh expressed concern over integrity issues faced by the industry, with some developers failing to fulfill their promises.
“Integrity is crucial in the real estate sector, he continued.
“When economic instability arises, some developers may struggle to complete projects, leaving buyers disappointed and skeptical”, he explained.
He also said the constant increase in the price of goods and services has a cascading effect on property prices, making them less affordable for potential buyers.
“Inflation erodes the purchasing power of individuals, making it difficult for them to invest in real estate. As property prices rise, the gap between supply and demand widens, hindering growth and development in the sector”.
To address these challenges, he advocated that a multi-faceted approach is necessary, suggesting that an improved economic stability through government policies will promote a favorable business environment and attract foreign direct investment.
“While economic instability and inflation are formidable challenges, I remain optimistic about the future of Nigeria’s real estate industry,” Ifijeh asserted. He emphasized the need for collaboration between industry stakeholders, policymakers, and regulatory bodies to implement effective solutions that drive growth and sustainability.