8 Top Nigerian Real Estate Trends for 2019
2018 had lots of promises for homebuyers and sellers even though the Nigeria real estate market had its own ups and down. The real estate industry has seen immense growth and realtors have been so successful in making real estate investments a huge achievement. Who will ever think that the real estate industry has so many benefits several years ago? The tides are changing and realtors are changing the game thereby making real estate a trending industry. There are lots of questions on what 2019 real estate trends will look like and here are the trends to look out for in the real estate industry.
Technology Will Keep Influencing Real Estate Trends
Technology has played a big role in several industries especially in the real estate industry. According to Spitz, he told Forbes that technological innovation is rapidly advancing in the real estate industry and preparing for disruption. A lot of technological inventions are changing the way buyers, sellers and investors interact with each other. Many years ago, there were traditional means of interactions but technology has made it a lot easier for advanced communication, negotiations, agreements, and payments.
Developing countries are now embracing these innovative technologies that keep emerging in the industry and investors are following the smart train.
More Realtors Will Go Digital
We all know that the world keeps going digital by the second and it keeps advancing from one level to the other. Smart realtors have been able to build a brand for themselves with the opportunities that the digital world offers. The real estate industry has penetrated the digital market and making it easier to build communities of buyers and sellers. It is very easy to gather information on real estate properties and interact with real estate investors using the digital medium. Digital marketing has also made it possible to achieve a wide range of marketing in the real estate industry and in 2019, realtors will be able to broaden their marketing horizon with new digital trends coming up.
Competition amongst Real Estate Investors Will Go Up
A lot of investors do not have a large number of funds to invest into real estate as some might and this may create a certain level of competition among real estate investors. Interest rates will definitely increase and it will have an impact on investors who will want to get a loan in order to buy and hold rental properties. These interest rates will also affect some buyers who might not be able to make acquisitions. A well-funded institutional investor can have more advantage because they can always set a large amount of money for advertisement or marketing campaigns that will accurately target the right buying demographics as well as acquisition opportunities and this makes the well funded institutional investor have more advantage than the average investor with lesser funds. Investors that will want to get a loan just to invest in real estate may notice a high cost as competition grows. In 2019, it is advisable for investors to make a smart move that will not be affected by the competition.
The Economy Will Affect Rental Prices
It is almost impossible to predict how perfect the economy might be in 2019 but with the new opportunities in the country such as change in regulations, new infrastructures, more creation of job employment, good road networks, new educational structures, building of refineries and factories amongst other things springing up, rental prices may increase. This is due to the fact that when the economy is doing well, rental prices will increase. This happens to be so because the economy will seem to be stable and the cost of rental properties won’t affect anyone’s pockets.
Restructuring of Apartments Will Make Renters Comfortable Even When Rent Increases
Not everyone can be a homebuyer for now. Some people who will love to acquire a property might be short of funds to acquire one at the moment and as such, they continue renting. By a steady investment in apartment reconstruction, renters can feel at ease in a rented apartment within their income while planning to invest into being a homeowner in the future. In 2019, investments in apartments by landlords will be a trend to maintain their properties while easing renter’s pains.
Slow Rate of the Price Growth of Homes
According to Gonzalez in Forbes, there is an assumption that the recent pattern of increasing inventory levels will be sustained in 2019 because the home price appreciation is likely to be slow with less than 7%. The majority of the inventory gains have been in upscale homes in the high-growth market.
The number of homes being put in the market has increased slightly which has helped to stop the decline of inventory. Inventory is likely to remain tight in 2019 and the wave of first-time home buyer demand will be met by a good inventory level which will be better than that of 2018.
Despite the Rising Mortgage Rates Most People Will Still Buy Homes
There will be a continuous rise in the mortgage rate in the real estate market in 2019. There will be so many first-time buyers in the market and they will make up the biggest segment of buyers next year. In as much as first-time buyers may struggle next year, old buyers will find it easy to move up the buying ladder and will have more options in the mid to upper tier price points.
Mortgage rates are still low and even lower than they were during the recession and below average. In 2019, this might change with a more stable economy and a lack of house crisis in the real estate industry.
A lot of real estate’s trends have been forecasted to happen in the future and most have been listed above. The medium and long-term housing prospects are good because there will always be a demand in the real estate market. 2019 will create a healthier market in the real estate industry and smart investors will do well with the trends.
Contact us atDPKay homes, to understand these trends better and make smarter moves in investment this year.