Economic downturn: Nigerians choices shift from luxurious to economically cheap accommodation

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By Moses Adeniyi

The woeful effect of dwindling economic fortune has not spared the Real Estate Sector in Nigeria, with large and luxurious apartments and buildings increasingly becoming abandoned for a choice of smaller and more economic apartments, stakeholders have noted.

It has been gathered that in the face of the unfortunate economic downturn, the choice patterns of many Nigerians are increasingly changing on backward directional angles, with parsimonious considerations given to smaller home apartments for living as well as for office purposes for business entities, in a bid to cut cost.

Information gathered from stakeholders in the Real Estate has it to reveal that the woeful situation of the economy has been yielding dynamic range of choices on the part of Nigerians, with many moving from Urban metropolitan areas to rural, outskirts and other less developed area where accommodation charges are less expensive to suit what their income capacities cater for at this time.

It has been learnt that that the changes in patterns of choice is not limited only to tenement accommodation, but also extend to houses for sale, as majority of the people who are shopping for houses to buy increasingly prefer patronising smaller houses, to purchasing luxuriously large houses.

A stakeholder in the Real Estate Sector, Rotarian Sola Fatoki, said it was observed that several houses put up for sale by Developers who have spent humongous sum in building them, are suffering the fate of low patronage as a result of money scarcity in the economy.

He averred that the Nigerian economy is really bad and the  effect is inflicting injurious blows mostly in the property market, stressing that many tenants today, are finding it difficult to pay rents and many finding it difficult to cope with their current rents are now resorting to relocating to low rental areas.

Expressing concern he said, “The Real Estate market is already experiencing a lull which has given rise to high rate of vacancies all over the place. Our economy is bad and the effect is mostly felt in the property market.

“People find it difficult now to pay rent. Most people are moving down to low rental areas to cope with their accommodation needs. For example, someone in a 3-bedroom flat now goes down to 2-bedroom flat.

“Also people are now moving from high rental areas to medium and low rental areas. That is why you see people moving from the Island to the Mainland; from Mainland to Ikeja and other low rental areas.

“A lot of people wants to sell their properties to get capital for other investments to move on with life, but there are no buyers as a result of dearth of money in the Nation. Most properties developed by developers and inventors are facing the same fate.”

Calls have, however, being made on the Government to put viable measures in place to revamp the economy for the revival of all sectors to complement forward growth and development in the Country.

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