Nigerians Still Investing In Real Estates, Despite Insecurity- Developer

The General Manager, Human and Business Relation, Jedo Investment Company, Anthony Onwuma,  has said that an inflation storm is coming on the Nigerian real estate industry in the next two years when insecurity must have subsided.

The developer said in an interview with THE WHISTLER that it was the right time for off takers to buy properties.

He said,  “When you are having crisis that is when some people are cashing in. Some people may want to sell below and this is the right time to cash into real property as an investor in terms of property. 

“So, in terms of investment in property, I believe if your are buying property now, it is the right time to buy. In terms of value appreciation only people who are afraid may want to sell, but they are not selling low. If you are buying in at this time, in the next one or two years if the security challenges gets resolved, the value will appreciate. “

Nigeria’s real estate industry has been hit by the twin shock of insecurity and the Covid-19 induced pressure.

But the sector  has been able to improve over the past quarters, growing  2.81 per cent in fourth quarter of 2020 and  1.77 per cent in the first quarter of 2021.

Across Nigeria, there are issues with insecurity with the secessionist movement across the southern region fueling tension, while the issue of banditry and terrorism has hit had on the norther region.

Nigeria with a population estimated at over 200 million people has over 22 million housing gap.

Obi said, “Despite the  insecurity, real estate developers are still willing to provide  houses but not as we predicted will happen this year, because of the insecurity that has actually slowed down investment.”

The developer said people are buying properties irrespective of the insecurity challenges  and the implication it has on business.

“People are really buying property especially on the low income end, because a lot of people are tired of paying rent and if they can get good bargain in the market,” Obi added.

He revealed that the  ‘unprecedented level of insecurity’ has caused huge setback in the real estate investments in Nigeria especially in Abuja.

The GM said, “This level of insecurity that we are experiencing in the North has created high level of tension and most investors are not looking at investing in real estate big time, but it is not as if people are not investing. They are being cautious in  terms of their level of investment and the role they want to play in real estate in Abuja.”

Last year October, the country was hit with the #EndSARS protest against police brutality leading to the destruction of properties in the billions.

He said, “To some extent, most of the estates in Abuja are ensured, because when you are getting the money as some of the estates are funded by banks or commercial loans and those giving you the money will not want a situation whereby their investment will go down the drain. 

“We have natural disasters, we have fire outbreaks, so they ensure in their own ends, some of these real estate houses are secured especially if you are going to process the mortgage from the Federal Mortgage Bank.

“They demand insurance on the property that you are buying. To a large extent I will say about 75 per cent of the estates in Abuja are insured.”