{"id":6286,"date":"2017-09-19T01:45:50","date_gmt":"2017-09-19T01:45:50","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/property-market-developers-still-see-gloom-despite-exiting-economic-recession\/"},"modified":"2017-09-20T02:45:20","modified_gmt":"2017-09-20T02:45:20","slug":"property-market-developers-still-see-gloom-despite-exiting-economic-recession","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/property-market-developers-still-see-gloom-despite-exiting-economic-recession\/","title":{"rendered":"Property market: Developers still see gloom despite exiting economic recession"},"content":{"rendered":"<p>\n<\/p>\n<div itemprop=\"description\" readability=\"120\">\n<p>By\u00a0Kingsley Adegboye<\/p>\n<p>IN spite of the cheering news that the country is getting out of\u00a0 economic recession, the bleak outlook of the <a href=\"https:\/\/amazingproperty.com.ng\/blog\/sell-your-home-online-fast\/\">housing<\/a> sector of the nation\u2019s economy will remain a major cause for concern for <a href=\"https:\/\/amazingproperty.com.ng\/blog\/property-center-nigeria\/\">real estate<\/a> developers and the survival of their businesses in the country.<\/p>\n<p><!-- between content ad --><\/p>\n<p>This is because developers have been churning out housing units in different parts of the country without corresponding demand for them. This has subsequently led to the astronomical increase in the number of unsold housing units across Nigeria.<\/p>\n<p>Developers have blamed the rise in the cost of <a href=\"https:\/\/amazingproperty.com.ng\/blog\/discover-the-top-construction-materials\/\">building materials<\/a> and construction generally for this glut in the country\u2019s property market. They painted a gloomy picture about the scenario, pointing out that there are no immediate signs of turnaround in housing sector as the glut is biting harder across all strata of the market.<\/p>\n<figure id=\"attachment_780560\" style=\"width: 412px\" class=\"wp-caption alignnone\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/cdn.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1.jpg?resize=412%2C250&#038;ssl=1\" data-lazy-src=\"https:\/\/i0.wp.com\/www.vanguardngr.com\/wp-content\/plugins\/lazy-load\/images\/1x1.trans.gif?ssl=1\" class=\"size-full wp-image-780560\" alt=\"\" width=\"412\" height=\"250\" srcset=\"https:\/\/www.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1.jpg 412w, https:\/\/www.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1-300x182.jpg 300w, https:\/\/www.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1-58x35.jpg 58w, https:\/\/www.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1-260x158.jpg 260w, https:\/\/www.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1-200x121.jpg 200w\" sizes=\"auto, (max-width: 412px) 100vw, 412px\"\/><noscript><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-780560\" src=\"https:\/\/i0.wp.com\/cdn.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1.jpg?resize=412%2C250&#038;ssl=1\" alt=\"\" width=\"412\" height=\"250\" srcset=\"https:\/\/www.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1.jpg 412w, https:\/\/www.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1-300x182.jpg 300w, https:\/\/www.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1-58x35.jpg 58w, https:\/\/www.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1-260x158.jpg 260w, https:\/\/www.vanguardngr.com\/wp-content\/uploads\/2017\/04\/LAGOS-ESTATE-1-200x121.jpg 200w\" sizes=\"auto, (max-width: 412px) 100vw, 412px\"\/><\/noscript><figcaption class=\"wp-caption-text\">A housing estate in Lagos<\/figcaption><\/figure>\n<p>Managing Director and Chief Executive Officer, Propertygate Development and Investment Plc, a Lagos-based real estate development and investment firm, Mr. Adetokunbo Ajayi, told Vanguard Homes &amp; Property in a chat that there is no doubt that the impact of the recession is being felt in the real estate sub-sector of the nation\u2019s economy just as it affects all other sectors of the economy.<\/p>\n<p>Ajayi, however, noted that in as much as he agrees that recession is taking its toll on the property market, with developers finding it extremely difficult to sell completed housing units across the country, developers who are innovative and developing the kind of <a href=\"https:\/\/amazingproperty.com.ng\/blog\/really-nice-property-for-sale-in-nigeria\/\">houses<\/a> people want, and located in good locations, will sell very well in this period of recession.<\/p>\n<p>According to him, economic recession is an opportunity for innovative developers to prove themselves by initiating ideas in their housing packages to attract buyers if the houses are in good locations with good accessibility.<\/p>\n<p>Lamenting high cost of construction resulting from provision of infrastructure by developers in their estates, Propertygate boss said if governments at all levels can provide infrastructure such as roads, electricity and others, this will reduce cost of construction, and invariably reduce the cost of housing delivery.<\/p>\n<p>He said what causes the prices of houses to go up is the totality of all costs of construction, stressing that if governments can provide infrastructure to sites before developers start actual construction of housing projects, the cost of housing units will be drastically reduced.<\/p>\n<p>Another developer who prefers to be anonymous, said until there is an overall turn around in the economy, the real estate market will exhibit features of worst recession ever experienced in the past decades.<\/p>\n<p>Purchasing power of the populace<\/p>\n<p>While arguing that in any economy, a period of mass disengagement of staff is always followed by a prolonged property crisis, he said those laid off will default in rent payments; the cost of developing houses and property will escalate while at the same time the purchasing power of the populace may crash to the lowest ebb.<\/p>\n<p>Meanwhile, as a measure to make home ownership cheap and affordable to Nigerians, Power, Works and Housing Minister, Mr. Babatunde Fashola, has unfolded federal government\u2019s plans to build 360 houses in three states through public private partnership, PPP, arrangement in the first phase. This includes develop \u201crent to own\u201d housing scheme for those who cannot afford <a href=\"https:\/\/amazingproperty.com.ng\/blog\/mortgage-preapproval-guide-for-home-buyers\/\">mortgage<\/a> and incorporate a new housing model into the National Building Code.<\/p>\n<p>Fashola argued that there is urgent need for the country to increase <a href=\"https:\/\/amazingproperty.com.ng\/blog\/get-quick-loan-for-real-estate-investment\/\">funds<\/a> allocated for housing development, lamenting that the N36 billion appropriated for housing sector in the 2016 budget is grossly inadequate. \u201cWe look at the N36 billion as the fund with which we will build the concept and if the concept is successful, then we can roll it out more massively because it is not going to solve our housing problems. Affordability lies at the heart of what we are doing\u201d, he said.<\/p>\n<\/p><\/div>\n<p><a hre=\"https:\/\/www.vanguardngr.com\/2017\/09\/property-market-developers-still-see-gloom-despite-exiting-economic-recession\/\"> Vanguard <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By\u00a0Kingsley Adegboye IN spite of the cheering news that the country is getting out of\u00a0 economic &hellip; <a title=\"Property market: Developers still see gloom despite exiting economic recession\" class=\"hm-read-more\" href=\"https:\/\/amazingproperty.com.ng\/blog\/property-market-developers-still-see-gloom-despite-exiting-economic-recession\/\"><span class=\"screen-reader-text\">Property market: Developers still see gloom despite exiting economic recession<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":5990,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[1403,2890,1398,1399,12908,543,617,489,344,1442,684,3058,408,522,15272,1007,41,140,84,2878,15282],"class_list":["post-6286","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-buy","tag-construction","tag-developers","tag-development","tag-home","tag-home-buying-guide","tag-house","tag-houses","tag-housing","tag-in-housing","tag-lagos","tag-location","tag-mortgage","tag-nigeria","tag-outlook","tag-owners","tag-property","tag-property-market","tag-real-estate","tag-real-estate-market","tag-ross"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/08\/LAGOS-ESTATE-1.jpg?fit=412%2C250&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":7717,"url":"https:\/\/amazingproperty.com.ng\/blog\/real-estate-industry-to-record-modest-growth-in-2018\/","url_meta":{"origin":6286,"position":0},"title":"Real estate industry to record modest growth in 2018","author":"Amazing Property","date":"January 8, 2018","format":false,"excerpt":"An illustration of the proposed Ilubirin housing estate in LagosThe growth of the nation\u2019s real estate industry is expected to be sustained this year, with increased signs of economic recovery. And this positive outlook will be largely driven by the country\u2019s sound macroeconomic fundamentals, the growing knowledge process outsourcing\u00a0industry, aggressive\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Lagos 08 01 2018.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/Lagos-08-01-2018.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/Lagos-08-01-2018.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/Lagos-08-01-2018.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/Lagos-08-01-2018.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/Lagos-08-01-2018.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":36345,"url":"https:\/\/amazingproperty.com.ng\/blog\/a-real-estate-company-set-to-deliver-over-1000-homes-to-nigerians\/","url_meta":{"origin":6286,"position":1},"title":"A real estate company set to deliver over 1000 homes to Nigerians","author":"Amazing Property","date":"May 26, 2022","format":false,"excerpt":"A real estate company in Nigeria has promised to deliver over 1000 homes to Nigerians. 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Shola Bello, managing Director,\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":" real estate","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2020\/08\/Real-estate-blog-in-Nigeria.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":1590,"url":"https:\/\/amazingproperty.com.ng\/blog\/experts-outline-emerging-trends-in-2017-property-market\/","url_meta":{"origin":6286,"position":2},"title":"Experts outline emerging trends in 2017 property market","author":"Amazing Property","date":"March 6, 2017","format":false,"excerpt":"Real estate With this year offering the most challenging moments in the real estate sector, industry experts believe the property markets will continue to change, shift and evolve, sometimes quite dramatically. They argue that in the midst of the harsh economic atmosphere, there are pockets of opportunities, which could boost\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/Real-Estate1.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/Real-Estate1.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/Real-Estate1.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/Real-Estate1.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/Real-Estate1.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":2222,"url":"https:\/\/amazingproperty.com.ng\/blog\/fg-mulls-workers-estates-as-developers-unveil-projects\/","url_meta":{"origin":6286,"position":3},"title":"FG mulls workers\u2019 estates as developers unveil projects","author":"Amazing Property","date":"March 20, 2017","format":false,"excerpt":"New housing estate In a bid to ameliorate the housing problem in the country, the Federal Government has concluded plans to float a mass-housing scheme for public sector workers in states. 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There is widespread eanxiety as Nigeria has entered another recession amid the coronavirus pandemic. The worst hit by the declining economic trend had been the housing industry, which was nursing injuries from government policies in the last four\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2020\/11\/Emma-Wike.jpg?fit=1200%2C674&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2020\/11\/Emma-Wike.jpg?fit=1200%2C674&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2020\/11\/Emma-Wike.jpg?fit=1200%2C674&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2020\/11\/Emma-Wike.jpg?fit=1200%2C674&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2020\/11\/Emma-Wike.jpg?fit=1200%2C674&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/6286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=6286"}],"version-history":[{"count":0,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/6286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media\/5990"}],"wp:attachment":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=6286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=6286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=6286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}