The Housing Development Advocacy Network (HDAN) has stated that the nation’s real estate market is currently slowing down due to high interest rates and inflationary pressures.
In a statement, HDAN’s Executive Director, Barr. Festus Adebayo, said that the depreciation of the naira and the growing expenses linked to importing building supplies were contributing factors to the increase in property values.
“It is particularly a tough time for real estate sales nationwide,” Adebayo said, citing these difficulties and comparable tendencies seen in other big cities including Abuja, Lagos, and Port Harcourt.
In particular, the real estate market has been directly impacted by the fall in consumer spending power caused by the spike in inflation. Additionally, as construction costs have increased due to inflation, fewer new ventures and their viability are being considered.
“The costs of building materials have soared, labour costs have skyrocketed, and house prices have followed suit,” Barr. Adebayo continued. The rental market is unstable, and renters are being squeezed as even maintenance fees have increased.
The HDAN boss recommended that “The government should either subsidise locally sourced building materials or reduce the cost of importing them to make housing more affordable.”
In order to navigate these challenging times and ensure a sustainable future for the Nigerian real estate market, he stated that developers, investors, and government agencies alike must collaborate.
He added that without significant intervention and innovation, the dream of affordable housing may remain elusive for many Nigerians.
