CAN I STILL INVEST IN REAL ESTATE IN THE PANDEMIC AND POST-PANDEMIC ERA?
It’s been several months into the hit of the Covid-19 and this has had an unprecedented and far reaching effect on several countries economy including Nigeria, which was already tackling its own fiscal challenges. You would agree it can be tough to find the silver lining. However, it is important to remember that in times of fear and uncertainty, there is also opportunity.
Investing in housing during the pandemic and post-pandemic era may not yield immediate results but by being less unstable than the more volatile investment such as stock market, it is definitely a safer bet in the current situation. The crisis has shown us all that, the importance of owning a home as our safe haven cannot be overemphasized. The demand of residential real estate as millennials are key-drivers and their preferences are now dictated by the prevailing uncertainties.
Some factors leading to increase in investment are as follows:
- Adoption of Technology: the major shift towards the adoption of online portals for learning, advertising, buying & selling, working and even house inspecting. People now preferring to stay in the comfort of their homes and get things done. This encourages safety and might be the way of living for a very long time. Hence, the rise in demand for comfortable family homes makes real estate an opportunity for investors.
- Government Policies: the current crash in oil prices from 5.5 trillion naira to 1.1 trillion naira in 2020, which has been Nigeria’s only source brought a sudden fiscal crisis in Nigeria and leaving us with immense economic challenges. Hence, the government with the Central Bank of Nigeria have come up with a plan to initiate funding interventions in four key sectors and these includes housing with the aim of providing affordable housing. This is definitely a good opportunity for new and aspiring real estate investors.
- Steady income: despite the adverse effects of the covid-19 such as unemployment, one of the sectors that was not affected by the pandemic is housing. Though, there was fluctuation in market prices, but there was an immense increase in demand for good housing as shelter is a necessity for safety. Hence, rental property owners still have their steady income.
Real estate investment during this period is not only vital for economic recovery but also comes with increasing opportunities for investors. It is advisable to take advantage of these opportunities.