The real estate sector is going to take a different turn very soon. Even amid the stringent policies, a wider range of opportunities, urbanization, higher risk and gains, to properly perceive the future one must understand the economic and social shifts. The real estate sector in Lagos is changing its demographics with new trending technologies and with that we can predict just where this trend might be leading to.
So let’s dive in.
Developing cities like Port Harcourt, Abuja, and Lagos should expect more increase in young growing population in the middle working class looking to move over to developing areas with close proximity to workspaces and offices. We can expect the real estate sector to be dominated by offices, residential and retail, there should be a slow decline in the year 2030 with things being equal.
Investors looking to cash in must hunt where the ducks are, else, risk losing their money to a not so good investment. These shifts in demographic trends will certainly lead to quite a few changes in consumer yearnings such as demands in types of housing, products and real estate development.
Urbanization & Expansion:
The future is bright even in bleak circumstances that this pandemic has put the whole world into. In Lagos, where the largest refinery in Africa lies, one can expect a quick expansion of the surrounding area. We all know what happens when the big spenders roll in. Continuous and aggressive expansion in roads and infrastructure, retail businesses will quickly sprout up looking to make money as quickly as possible.
Investors looking to seize the opportunity must do so now or risk spending a whole lot when things take effect. A single road construction can shot up the prices of land especially in Africa’s biggest goldmine; Ibeju Lekki. The going rate currently shot up by 10% under 10 months. Ibeju Lekki should a large migration. The transportation sector will benefit the most as well as the construction sector.
Now there certainly will be a large flow of migration doesn’t mean there will be a success. Some areas are bound to fail. The reason is simple: because the economy doesn’t support people with enough jobs, or even matching salaries to be able to afford good luxurious homes. With this in mind, an investor must keep an eye out for emerging markets that truly thrive, for the competition is truly fierce.
Eco-friendly Real estate houses:
In a not so near future, the world might be facing a certain fate. A fate where eco-friendly homes will become the norm while modern houses of today will lose out of the competition. This will introduce a certain appraisal structure to the real estate market. It’s projected that by 2050, the world will need 50 percent more energy, 40 per-cent more water, and 35 percent more food to sustain the population. So a house built or rather an estate built with a “green” strategy in mind will hold more value to investors, buyers and the world at large.
This will certainly happen but not so soon. However, you might give it a try but it will be expensive.
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