The Residential Real Estate Transactions market in Nigeria is experiencing significant growth and development.
Customer preferences: Customers in Nigeria are increasingly interested in investing in residential real estate properties. This is driven by various factors such as the growing population, urbanization, and increasing disposable income. Many Nigerians see real estate as a safe and lucrative investment option, and they are willing to invest in residential properties for both personal use and as a means of generating rental income. Additionally, there is a cultural preference for owning a home, which further drives the demand for residential real estate transactions in Nigeria.
Trends in the market: One of the key trends in the residential real estate transactions market in Nigeria is the rise of affordable housing. Developers are focusing on building affordable housing units to cater to the growing demand from the middle-class population. This trend is driven by government initiatives to promote affordable housing and the need to address the housing deficit in the country. As a result, there has been an increase in the number of residential real estate transactions for affordable housing units. Another trend in the market is the increasing use of technology in the real estate sector. Online platforms and mobile applications have made it easier for customers to search for properties, view listings, and connect with real estate agents. This has streamlined the process of residential real estate transactions and made it more convenient for buyers and sellers to engage in property transactions.
Local special circumstances: Nigeria has a rapidly growing population, with a high rate of urbanization. This has led to a high demand for housing in urban areas, especially in major cities such as Lagos, Abuja, and Port Harcourt. The limited supply of housing in these areas has contributed to the increase in residential real estate transactions, as buyers compete for available properties. Additionally, the Nigerian government has implemented various policies and initiatives to promote the real estate sector. These include the creation of a mortgage refinancing company, tax incentives for real estate developers, and the establishment of a Real Estate Regulatory Authority. These measures have helped to attract both local and foreign investors to the residential real estate market in Nigeria.
Underlying macroeconomic factors: The growth and development of the residential real estate transactions market in Nigeria are also influenced by underlying macroeconomic factors. Nigeria is experiencing economic growth, which has resulted in an increase in disposable income and purchasing power. This has contributed to the demand for residential properties, as more people are able to afford to buy homes. Furthermore, the stability of the Nigerian banking sector and the availability of mortgage financing options have made it easier for individuals to access credit and finance their real estate purchases. This has further stimulated the residential real estate market in Nigeria. In conclusion, the residential real estate transactions market in Nigeria is experiencing significant growth and development due to customer preferences for real estate investment, the rise of affordable housing, the increasing use of technology, local special circumstances such as population growth and urbanization, and underlying macroeconomic factors such as economic growth and access to mortgage financing.
Data coverage:
Figures are based on total and average revenue of residential real estate transactions (sales).Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
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