The real estate industry has always been a sought after. Housing is dated to be as old as man if you understand the Earth itself is a home ( or should I even say older than man). It's not ALL info that you have to make research upon research to get needed facts. I am a lover of real estate and also happen to live around someone who is running it right under my nose. Although not at a standard level I must say, nevertheless, he is seeing the needed result even in deterring economy that Nigeria is currently facing. We shouldn't go into much of that. Yesterday was Independence day marking a sixty four year run. Maybe I should write it in words; I meant '64 years of independence'. Let's halt here to avoid vexations.
So I was talking about housing in the Nigerian economy. I will be very specific about home apartments here as businesses are shrinking, which will open doors for a lot of bankruptcy. Shops and rent out space may shrink mostly from next year from my studies. But even in the midst of this, there will be a growing demand for living apartments. In an economy full of frustration I guess having where to cool off your head should be prioritized. I don't know how it is happening in other states of the country but over where I am residing I have seen green light for those owning houses in the city. I have done some diggings with local agents and from what I have heard and seen myself it's a big yes.
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The cost of renting houses has increased yet people are doing all they can to afford it. The question remains why? I will be doing some possible analysis as we delve deeper into this. Firstly I must say, life is having more light in developed cities and towns than the villages. It has always been so but it seems there has been a massive shift in ratio than usual. Life in the rural areas is no longer as lucrative as before. At least they had access to sufficient food. The entire story has changed, the high cost of petrol and diesel is affecting local production. Adding to that, rising prices of fertilizer and man power also bites from another angle. Summarizing it will be the high cost of transporting this goods to town.
I actually met one local producer who took time to explain all this to me. The entire idea after the analysis was that it would be better to have an apartment in town in order to even thrive local businesses. Why so? Paying transport to sell in the town day after day accumulates to a higher cost on a calendar yeae when comparing it to renting an apartment and maybe going into the villages once in a while for production when you are out of stock. Trust me, transportation is becoming a major concern, I know how much I have to put in my pocket just to move around within the town.
Another aspect to consider is rising insecurities in the rural areas. This economic instability is opening doors for many unethical practices. Report I got was that local thieves are rampaging farm lands in the course of survival. Even agricultural work is facing this big challenge in the rural areas. How will you do when you spend so much time, energy and money in planting and end up losing a chunk of your produce to local thieves. When looking at nearness to security center by those living in the city it also helps scare or at least reduce such illicit practices. Adding to that, everyone is striving for peace of mind at least to calm down the whole economic heat, so you know where to rest your head matters.
A liquid market
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There is enough liquidity in the market for consumption goods especially in towns and cities and this is causing what is usually called market FOMO. When I step out in the cool of the evening I see a lot of road side evening eateries and sitouts. It means if one could just be able to be productive, consumption will be inevitable. With the rising cost of living, singles especially are clinging to easy snacks and roadside meals after a workaholic day at business premises. Although there may be some form of rigidity, cash is flowing much easier in town, it is bringing in more rural dwellers and real estate owners( landlords and landladies as locally called) are making the most of it.
I have always had eyes for real estate and I am not planning to back off anytime soon. It is not just because of the soaring demand although it also helps to stimulate the needed confidence. Adding to that, the taxation over here is loosed I must say, maybe I will have to draft another article to cover the hedge real estate entrepreneurs have from here. Nevertheless, there are risks involved. The current situation of the country also brings uncertainty about a possible riot or national war breakout as we speak. If things continue to tighten more and more, who knows what will be the next reactions of individuals. It's always better to do proper business analysis.
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