Property developers as well as estate surveyors and valuers have said the real estate industry is still in recession despite the rebound in the economy. Some of them , who spoke with our correspondent, said many houses were still vacant and there was still high rate of default on rent payment by tenants .

According to experts in the industry , the real estate market is often the worst hit in times of recession and also takes a longer time to pick up unlike other sectors. The National General Secretary, Real Estate Developers Association of Nigeria, Mr . Akintoye Adeoye, said investors , especially those in the residential sub -sector, had yet to feel the impact of a rebound in the economy.

He noted that despite several innovative options that had been made available to buyers, developers were still unable to sell off or lease properties . Adeoye stated, “ As developers , we haven’ t felt any change in the economy . It is still the same as it was about one year ago when the recession was biting hard. Many houses are still vacant despite the fact that developers are becoming very innovative with offers to investors .
“ We have come up with offers some of which allow subscribers to pay between 20 and 30 per cent deposit, move into the houses and spread the balance over four to six -year period. But despite this very generous offer , many subscribers are not forthcoming, because they are unable to come up with the deposits even on houses as cheap as N 9 m. So, in the real estate industry , we are still in a recession. ”

According to Adeoye , the rental market is also not faring better as many landlords and tenants are in court over default on rent obligations . “ It has been a tenant’ s market for some time now, but even that has not helped . As a lawyer , I can tell you that rent -related court cases are on the increase; tenants are defaulting and taking their landlords to court and vice versa, ” he said.

He added that the top end and luxury markets in Lekki , Victoria Island and Ikoyi in Lagos, and some parts of Abuja, were the most affected. The Senior Partner and Chief Executive Officer, Nelson Thorpe Alonge, a firm of chartered surveyors and estate surveyors and valuers, Mr . Victor Alonge, said it would take at least six months to one year post -recession for the real estate industry to pick up.

He explained, “ As far as we are concerned in the industry , there has not been much change. In a recession, real estate is always badly hit; it is a cyclical challenge that real estate faces. And the key thing is that because real estate backs the economy , even when the economy is out of recession, it takes a while for that to be translated to the industry.

“ Things have not changed as long as real estate is concerned ; capacity is still low, uptake is still very low; we have very high vacancy rate and even where there are tenants , the rate of default is very high and landlords have had to take the heat. “ It will take a minimum of six months before the exit from recession reflects on the industry , because then , the economy will allow for planning , which will feed into other sectors. Evidence from places with robust data show that it will take about six months before we begin to see the effects ; but the full effect will take over a year. ”

Alonge said the recession had adversely affected practitioners as the traffic had been low and supply into the market constrained . “ No one wants to start a project that won’ t be taken up. Prices have also nosedived and because of the challenges of having to spend more time and resources selling one property , our income has been affected and it has been challenging for estate surveyors and valuers and others too , ” he added .

According to another estate surveyor and valuer, Mr . Akin Olawore , the recession within the real estate sector is brought about by high vacancy rates as the housing stock is excess of demand , while rents are being negotiated downwards due to low purchasing power, with high rent default rate. “ Tenants seem to have an upper hand at this time as landlords are usually caught in between increasing rent or retaining existing tenants in order to avoid vacancy, ” he added .

The Principal Partner , Kola Akomolede and Co . , a firm of estate surveyors and valuers, Chief Kola Akomolede , said it might take up to the third or fourth quarter of 2018 for investment in the real estate industry to return to normal, adding that this was also subject to a continued improvement in the economy. He added , “ Investment in real estate takes time to respond to economic issues. Like economists will say , demand and supply are inelastic. So, it will take time for the market to react to the economy’ s exit from recession .

“ For instance , if there is a shortage in supply, it takes time to improve on it and if there is a shortage of demand too , it takes time for it to improve . As far as the market is concerned , we are still in recession; tenants still owe rent. ”Akomolede, however, advised that this was the best time to invest in real estate as well as construction activities.
“ Whoever has the capacity to build should go ahead with construction because when the market begins to boom again , they will look back and realise they made the right decision. Same goes for those who can afford it and wish to buy houses ; there is no better time than now to do that, ” he added .

Olawore said a time of recession meant there would most likely be reduced head -on competition in the space as some investors would prefer to back out and wait for the economy to pick up, adding that this was the best time for smart investors to come in.
“ A time of recession is where the bravery and strategy of real estate investors are called upon , ” he noted .


Source:
http://punchng.com/real-estate-industry-still-in-recession-experts/

www.naijapropertiesonline.com

lalasticlala, mynd44

Ok

I thought it is the best investment

Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, is credited with saying that: "The time to buy is when there's blood in the streets." He should know. Rothschild made a fortune buying in the panic that followed the Battle of Waterloo against

really

Some part in recession, some other part isn't.

What a country.

APC government

I thought Buhari and lair Muhammad said Nigeria is out of recession..

Another APC lie busted.

The whole economy is still in recession...
Forget the lies from the APC.

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One of the reasons investors will be better off to buy now to benefit from value appreciation rather than paying higher price later.

"Buy real estate and wait rather than waiting to buy". The best investment decision

supported.

Una recession go long

When PDP was sharing money anyhow, una carry prices of land and rent to the ceiling not knowing that the money was not from the productive sector rather it was just temporary awoof.

Reality has set in, una still dey expect person to pay 2m a year for rent

the economy Is not helping the industry at all, I pray it boom back

kidnapping of some residents in estate has forced many to relocate to some other arras

I laugh when they say Nigerian economy has rebounded , *in lassisi's voice * " are you mad, are you stupid?

Anyone who wants to confirm if Nigeria is out of recession should go to the open markets and have a first hand and informed opinion

The issue of recession has been politicised by APC and the Federal Government. They mounted pressure on the Statistician General of the Federation (SGF), Dr. Yemi Kale, who hurriedly proclaimed that we were out of recession. Shortly after, he was re appointed to a fresh term of office, even when he was a PDP appointee

From the foregoing, any discerning Nigerian can easily read between the lines....

They should bring down the rent. besides, developers that you people are badmouthing every time are returning back home. Don't just tell me your people can't afford such luxury.

Nigeria is a whole lols

Customized Jersey promo, check my signature..Dont miss it

No Wonder all the landlord in my area are now practicing Boxing,Now that the economy is not smiling they will be able to fight their tenants.
Chai...
I pity daddy iyabo,,Iya Ayo,,baba sunbo,,baba Kemi,,,uche,,,Chinedu,,, and all my co tenants..

AnodaIT:
Una recession go long

When PDP was sharing money anyhow, una carry prices of land and rent to the ceiling not knowing that the money was not from the productive sector rather it was just temporary awoof.

Reality has set in, una still dey expect person to pay 2m a year for rent

Look you, one Mugu still wants to sell house in Omole phase 2 for 100 mil. I was just laffing cos I know I would still go back and buy the house less than 60m. Though the house fine sha

Stalwert:


Broa if suffer dey sweet you abeg Libya dey make you go suffer ... rebounding does not means immediate change. Things are gradually getting their rhythm back

Stop decieving ur that Nigeria is better than Libya while in reality Libyan are still far better in most human development index

Ok