From Our Housing Stand (119)
The year 2024 has entered its second quarter, and it is imperative to review its first quarter, which saw real estate investors seeking investment opportunities that would provide good returns.
Many prospective home buyers, already disillusioned by the housing market, found the first quarter of the year 2024 housing market to be a challenging one.
Nonetheless, experts say the housing market will only see renewed momentum once mortgage rates drop enough to ease buyer affordability obstacles and incentivize homeowners locked in at low rates to move.
Experts insist the housing market will improve despite high mortgage rates, out-of-reach home prices and sluggish sales transactions amid dampening demand.
Unfortunately, hopeful buyers continue to see a delay in this yearn-for transformation, thanks to several ongoing headwinds. One is inflation taking its toil on the economy and further delaying the real estate market from cutting the property funds rate.
Housing Trends In the First Quarter
Due to economic reasons, co-living or flat sharing has gained momentum in the first quater of 2024, especially among the millennials in big cities such as Lagos and Abuja. The way people live and work is undergoing a paradigm shift, and the real estate market is adapting accordingly.
Housing Entrepreneurs have noted that co-living spaces and flexible working arrangements are driven by a growing millennial workforce and a desire for collaborative environments.
The rental market dynamics are evolving, driven in part by changing demographics and lifestyle preferences. Short-term rentals, co-living arrangements and furnished apartments are also another trend that has gained popularity in the first quarter.
The first quarter of 2024, has also introduced what analyst has described as a heightened focus on green building practices, energy efficiency and eco-friendly development.
Sustainable and eco-friendly practices are gaining prominence in real estate development in the first quarter of the year. With a growing awareness of environmental issues, investors are increasingly incorporating green building designs, energy-efficient solutions, and eco-conscious amenities. This not only aligns with global sustainability goals but also resonates with environmentally conscious consumers, thereby adding long-term value to the investment.
A consistent game-changer, this first quarter is the technological emergence of proptech solutions in creating a distinctive, simplified, and more efficient experience around property ownership and leasing. Proptechs utilise technology to provide solutions that leverage advanced data and analytics to gain feedback, improve sales and better manage the lifecycle of projects in the real estate business.
Another trend that has gained momentum in the first quarter is Modular housing, though not a new development, By leveraging prefabricated and modular construction methods, this innovative approach addresses challenges in traditional homebuilding
Conclusively, the landscape of real estate investment in Nigeria is marked by dynamic shifts and evolving trends; forward-thinking investors who have taken the risk to explore the trends and opportunities mentioned above are positioned for success.
Real estate presents a good case in an investment opportunity, especially for savvy investors who have what experts describe as a “patient capital ready to endure long investment cycles.”
The Real estate business should be views as a complex investment asset class which demands a good understanding of its intricacies along with evolving trends that help ‘enthusiastic investors‘ to make informed investment decisions.
