The housing market in Nigeria vs the world
Are you living in Nigeria or elsewhere and considering a house move? Maybe you are looking to sell or considering investing in real estate somewhere abroad. Before you take any actions, it’s always a good idea to understand how the market is behaving and what lies ahead. Then you can make a decision based on facts and in full knowledge of the situation.
Let’s take a closer look at the global housing sector, the African and Nigerian sector and what steps you should be considering.
The global housing market
Right now the US housing market is booming. This has also been replicated in other countries on every continent. In fact, the Financial Times noted that 2021 has seen the broadest increase in property prices in more than 20 years.
This has come after a difficult 2020 that saw economic issues, stagnated markets, and recession. But 2021 has been back with a boom, resulting in global prices increasing at around 7.3% according to UK company Knight Frank.
Although this will vary depending on location, for example, Wales has average prices increase of 15.6%. Still, much of this increase has been due to governments’ attempts to strengthen the economy through stimulus, and also due to measures such as tax breaks and incentives.
Africa and Nigeria’s housing market
But what about in Africa and specifically Nigeria? In line with global trends, house prices are increasing, particularly in metropolitan areas. In the case of Nigeria, the property market has experienced rapid growth due to increasing demand. Urbanization, foreign direct investment, and steady corporate demand has led to increases of up to 10% a year. While things did slow down in 2020, it is slowly picking up.
One of the biggest challenges was access to funding but a growing middle class has helped to fill the gap. Lagos in particular has boomed as more and more luxury properties come on the market.
Furthermore, as the currency value drops, wealthy individuals are looking to invest in real estate as a way to keep their wealth. Area’s such as Banana Island have seen surges in both costs and demand, leading some to describe it as a “property boom”.
What does this mean for Nigerians?
It means that there are opportunities to sell and to buy. With prices going up, it’s a good time to sell your property in Nigeria, particularly in urban areas. For those looking to sell, it’s possible to make a sizeable return on the purchase price. The first thing to do is to get professional mortgage advice from a mortgage broker site like Trussle.
Understandably, the UK housing market has its own market dynamics, with house prices increasing 8.9% within the last year. While this is a tool available for a UK audience, it shows what technology can do to allow wider audiences the means to get a mortgage.
For example, this can be done with things such as mortgage calculators. Those with property in Nigeria but looking to buy abroad can calculate how much cash they will have from selling up, and what they could get in another country.
Using their intuitive tools, you can see how much you can borrow, what size deposit you need, and it’s possible to compare deals from different providers. This is an ideal first step for anyone looking to sell and then buy.
While there are still some uncertainties in terms of the economy and the housing market, for now, things are on the up. This means that the time is now for anyone considering a change of home.
