By Ayodeji Fashanu
As we approach the end of 2022, Nigeria’s real estate sector is undergoing a transformative phase, driven by two key elements: the adoption of technology and strategic government policy reforms. These forces are reshaping how real estate transactions are conducted, improving market transparency, and making homeownership more accessible.
Technology Disrupting the Real Estate Market
Over the last couple of years, the Nigerian real estate industry has started embracing digital transformation. In 2022, technological advancements have become integral to simplifying processes in property management, investment, and sales. Proptech (property technology) is now at the heart of this shift, creating a more efficient and accessible real estate environment.
Platforms such as PropertyPro, Spleet, and Fibre have led the charge, offering digital solutions to previously cumbersome tasks like property searches, rentals, and even property management. With the power of the internet, potential buyers and investors now have access to a wide range of listings, market data, and property comparisons at their fingertips.
Virtual tours and drone-powered property inspections have gained popularity, allowing prospective buyers to view properties remotely. This trend was accelerated by the COVID-19 pandemic, as virtual interactions became the norm. Moreover, blockchain technology started to find applications in real estate transactions, providing greater security, transparency, and faster verification processes.
As a result, investors and homebuyers can now navigate the property market with much more ease, avoiding the opaque processes that often characterised the industry in the past. Technology is playing a pivotal role in democratising access to real estate, particularly for younger Nigerians, who are more inclined to use these digital tools in their decision-making.
Government Policies Supporting Growth
On the policy front, the Nigerian government has taken significant steps in 2022 to improve the real estate market and reduce the housing deficit, which remains one of the country’s most pressing challenges.
One of the standout developments has been the ongoing review of the Land Use Act, a legal framework that has traditionally slowed down land acquisition processes. The government’s efforts to streamline land title acquisition and make land registration more efficient have begun yielding results. The simplification of land documentation has reduced bureaucratic bottlenecks, making it easier for developers to embark on projects and for individuals to acquire property.
Another critical initiative has been the push for affordable housing. In 2022, the government expanded the National Housing Fund (NHF), allowing more Nigerians to access low-interest mortgages. Coupled with an increasing number of public-private partnerships (PPPs), these initiatives are helping to bridge the housing gap, especially in urban centers like Lagos and Abuja. By partnering with private developers, the government is ensuring that more Nigerians have access to affordable housing, while also improving the infrastructure around residential areas.
Emerging Challenges and Opportunities
While 2022 has brought significant advancements in technology and policy, the real estate sector is not without its challenges. Nigeria continues to face issues related to unreliable power supply, inadequate infrastructure, and a volatile economic environment. These factors limit the pace of real estate development, particularly in rural areas and emerging markets.
Nonetheless, there is a growing interest in renewable energy and sustainable building solutions, as developers seek to address power supply challenges through solar and hybrid power systems. The government’s ongoing investment in infrastructure, including roads and power grids, is expected to create a more conducive environment for real estate development in the coming years.
Financial technology (fintech) is also playing a key role in supporting real estate investments. Crowdfunding platforms and digital payment solutions are offering innovative ways for developers to raise capital for large projects, while Real Estate Investment Trusts (REITs) are providing everyday Nigerians with the opportunity to invest in the property market without needing to own physical assets.
The Road Ahead for Nigerian Real Estate
As we reflect on the progress made up to 2022, it’s clear that the Nigerian real estate sector is on the verge of a significant transformation. The integration of technology, coupled with government reforms, is creating new opportunities for investors and making the property market more accessible to Nigerians from all walks of life.
Looking ahead, the continued adoption of technology, alongside sustained policy support from the government, will be critical in driving long-term growth. By addressing the housing deficit and leveraging innovative solutions, Nigeria’s real estate market is poised to play a key role in the country’s broader economic development.
As we move into 2023 and beyond, real estate professionals, investors, and policymakers must continue to collaborate to create a sector that is more transparent, inclusive, and efficient.
Ayodeji Fashanu has a track record of founding successful ventures like Invil Capital, Vestpro Solutions, Fayod Group, The Azaria Hotel, and Lekki Luxury Homes. He brings a wealth of experience in entrepreneurship and business leadership. As a seasoned founder and CEO, he is dedicated to driving growth, creating value, and fostering innovation.