Are you looking to sell your property in Nigeria fast? The trends in Nigeria have been very positive. The country has been urbanizing quickly and things are moving in the right direction. However, there are many issues of concern in Nigeria. Here’s a look at the major trends in the Nigerian property market in 2017.
#1: High cost of construction – It is not easy to build a new house in Nigeria for the average middle class Nigerian. The cost of building materials is too high, as are the labour costs. There are also many costs associated with setting up sewage systems. Cement prices are very high in the country, even higher than the global prices. That makes it really expensive to build a home in Nigeria.
#2: Limited access to capital – One of the issues that hurts the real estate industry in Nigeria is that while the country has been growing fast and has one of the fastest rising economies in Africa, financing still remains an area of concern. The general population just does not have access to financing options or mortgages in the same manner as those in Europe or Asia do. The banks and financial institutions in Nigeria are wary about lending to homebuyers because of the high rate of default.
#3: Young population, growing middle class – There is a demographic change underway in Nigeria. Over 60% of Nigeria’s population is under the age of 35 years. Millions of Nigerians families have benefited from the economic boom in the country and have moved to middle class respectability. Millions of Nigerians have higher disposable incomes and a lot of them want to venture out on their own and have become first-time home buyers. There is certainly a lot of demand for modern homes and apartments in the country, but the question is whether there is enough housing stock available.
#4: The recent devaluation of the naira – The Nigerian government made the decision recently to devalue the naira, which is the Nigerian currency. The reason stated for the move was to encourage exports and to make imports more expensive. While this certainly helps the local industry, for the real estate sector, the results have been slightly mixed. In fact the devaluation of the naira has made construction materials more expensive as most of these materials – such as steel - are imported from abroad. That adds to the woes of home builders in the country.
#5: High taxes and complex tax system – Taxes are a major issue in Nigeria. There are just too many taxes on the real estate sector. If you were to build a house in Nigeria or to buy property in Nigeria online, you may find yourself paying a number of different taxes such as the development levy, land use tax, building plan approval levy, income tax, property tax, and many more. The tax system is a serious issue of concern in Nigeria and there seems to be no getting out of it.