Jide Onasile and Co

Market Trends

The Growth of Proptech Industry in Nigeria

Proptech is a term coined from the words “property” and “technology,” and it refers to the application of technology to improve real estate operations. The Nigerian proptech industry is growing at an unprecedented rate, with new startups emerging to disrupt traditional real estate practices. The industry’s growth is driven by the need to address some of the challenges faced in the Nigerian real estate sector, such as lack of transparency, inefficient property management, and difficulty in accessing finance. In this article, we will discuss the growth of proptech in Nigeria and the impact it has on the real estate industry.

Home Buying

Lagos Infrastructure Updates: Building a Greater, Greener Future

Lagos, Nigeria’s economic capital, has been undergoing a significant transformation in its infrastructure over the past few years. The Lagos State government’s focus on infrastructure provision is a critical component of the “Greater Lagos” mandate, which aims to promote sustainable development and a greener future.

Market Trends

Cash Crunch: The effects on Nigeria’s real estate market

Nigeria’s cash crunch has had a significant impact on the country’s real estate and construction sectors, which are largely cash-based. The scarcity of cash in the system has led to delays in construction due to a lack of funds to pay daily wage workers, as well as longer delivery times for building materials due to suppliers adopting cash/payment confirmation before delivery. This has resulted in increased costs for construction, which could ultimately impact the cost of housing. In addition, the decrease in confidence in digital banking has also impacted the retail and logistics segment of the real estate market, causing delays in the timely delivery of orders and potentially leading to decreased revenue. While this situation is expected to be temporary, its impact on productivity and revenue is significant.

Property Management

Impact of diaspora funds on Nigeria’s real estate market

Diaspora-led investments in Nigeria’s real estate and construction sectors are helping to bridge the current finance gap plaguing both sectors. With the depreciation of the Naira and favorable lending rates in their countries of residence, Nigerians living abroad are taking a bet on real estate assets in Nigeria. Remittances from Nigerians in the diaspora account for a significant portion of Nigeria’s GDP and are expected to continue to increase. The potential for appreciation in real estate assets in Nigeria’s major cities makes it an attractive investment opportunity for diaspora investors and developers, with the residential, retail, hospitality, and industrial markets identified as beneficiaries of fresh diaspora capital. Initiatives such as the housing scheme launched by the Nigerians in Diaspora Commission in partnership with the Federal Mortgage Bank promote loan accessibility, mortgage discounts, and transparency for diaspora investors interested in buying or building their homes in Nigeria.

Market Trends

Common Issues in Property Management

Property management can be a challenging task for even the most experienced property managers. It involves the day-to-day oversight of the property in areas such as tenancy administration, rent collection, and maintenance. Managing a property also means overseeing the rights of both landlords and tenants, which can be quite daunting. Common issues that arise during the management process include apportionment of repair liabilities, delayed or non-payment of rent, and payment of utility bills. Property managers also have to navigate the legal system, which can be complicated, and negotiate rent reviews, which can be controversial if not handled properly.

Market Trends

Assessing the Impact of Flooding on the Real Estate Market in Nigeria

The Nigerian real estate market has been experiencing a significant impact from the recurring issue of flooding. With climate change and poor urban planning, flooding has become a regular occurrence in many parts of Nigeria, causing significant damage to properties and affecting the value of real estate. The floods not only affect properties in low-lying areas but also those in highbrow areas, leading to significant losses for property owners and investors. The impact of flooding on the Nigerian real estate market is multifaceted, with short-term and long-term implications that can affect the value and profitability of properties. As such, it is essential for property owners, investors, and stakeholders in the real estate industry to understand the impact of flooding on the market and take proactive steps to mitigate its effects.

Home Buying

ASUU Strike and Its Impact on the Student Housing Market in Nigeria

Academic Staff Union of Universities (ASUU) strikes have become a recurring decimal in Nigeria’s education sector. These strikes have resulted in the closure of tertiary institutions for prolonged periods, disrupting academic calendars and creating a ripple effect across various industries that rely on graduates to keep their businesses running.

Home Buying

Addressing the Housing Deficit in Lagos through Public-Private Partnerships

Lagos, the economic hub of Nigeria, is facing a housing deficit that is estimated to be about 3 million units, and this deficit is expected to increase to 5 million units by 2025. The government of Lagos state has acknowledged the need to bridge this gap and has taken significant steps towards addressing the issue, including partnering with the private sector to develop affordable housing units. Through Public-Private Partnerships (PPP), the government has been able to leverage the resources and expertise of the private sector to create innovative solutions to tackle the housing deficit in Lagos.

Market Trends

CBN raises MPR: What’s in it for Nigeria’s housing market?

The recent increase in the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN) from 11.5% to 13% is projected to lead to a significant spike in the cost of borrowing from commercial banks, with an estimated annual percentage rate (APR) of around 30%. This development poses a challenge for Nigeria’s housing market, which has long struggled to address the country’s housing deficit. With the rising cost of construction materials and supply constraints, developers face difficulties meeting project timelines and completion targets. Moreover, inflation rates have increased by over 60% points from pre-pandemic levels, further exacerbating economic uncertainty and deterring developers and investors from accessing bank loans for housing provisions. As a result, developers may have to explore alternative funding options, such as partnerships and off-plan sales, to boost housing delivery, which could negatively impact the quality of housing stock.

Market Trends

The Cost of Building Collapse in Nigeria: $3.2 Trillion Worth of Property Lost in 20 Years

Building collapse in Nigeria is a significant challenge that has devastating consequences. Despite efforts to curb the spate of building collapse, the country has lost properties worth $3.2 trillion to building collapse in the last two decades. This underscores the urgent need for sustainable solutions to address the underlying factors responsible for building collapse. The recent ban on building structures above three floors in the Ebute-Metta area of Lagos presents an opportunity for developers to uphold high development standards in line with industry regulations, which could positively affect the Yaba real estate market. However, the ban raises concerns about the supply of housing units in the affected areas, and the government needs to strengthen its enforcement of building codes and laws to ensure the construction of safe and sustainable buildings.