Real Estate Business: Operators optimistic of early rebound in 2021 if….
Notwithstanding the poor performance of the real estate sector last year, occasioned by the negative impact of the corona-virus pandemic, operators are optimistic that there could be an early rebound in 2021 if government lives up to its obligations.
The Guardian reported that for a sector hugely dependent on the economic dynamics, experts were cautiously optimistic that real estate will recover in the first quarter.
The optimism stems from better understanding of the covid-19 virus coupled with the positive moves by the Central Bank Nigeria in foreign exchange regulation, the recent World Bank report of possible 1.1per cent growth in the nation’s economy and the slight increase in oil price.
They also want policy makers to move decisively to tame the pandemic and implement investment-enhancing reforms.
According to the Frist Vice President, Nigerian Institute of Architects (NIA), Enyi Ben-Eboh, the construction industry is normally one of the worst hit when there’s a downturn in the economy because priority is often diverted to subsistence sectors such as food, information technology and medicines.
However, with a better understanding of the covid-19 virus and availability various vaccines to tackle its spread,he said, life can begin to gradually return to normal and the economy can also start improving.
Eboh was also optimistic that the prices of basic construction materials like cement and a few others that spiralled out of the reach of most, especially in Q4 of 2020, will return to what they were in Q1 and Q2.
“This may be wishful thinking but all things being equal, 2021 will hopefully herald the gradual return to activities in the construction sector to near pre-pandemic levels. The general outlook is however that of a wait and see position,” he said.
For a past president of Nigerian Institution of Estate Surveyors and Valuers (NIESV), Joe Idudu, the hope of good performance for the sector in 2021 would depend largely on growth in the general economy.
The whole economy, he said, is down, despite what government has said. Idudu explained that as many people find it difficult to feed because the prices of food have skyrocketed, they are debarred from thinking of owning a property or going into property investment.
He urged policy change based on previous advice and ensure a general improvement in the economy pattern to reflect the reality.
According to him, “Government should move away from its control on land, and ensure that land ownership is free so that people can use their lands to borrow money and do businesses. “Government ownership on land won’t help. Where we are on the ease of doing business in the world is a disgrace. We are at the bottom.
“I don’t foresee any good news. The economy is down. The property industry is the one that would only improve when there is a general growth. People will generally not invest in property, which has a long gestation during difficult times,” he said.
For a past president of Nigerian Institution of Estate Surveyors and Valuers (NIESV), Joe Idudu, the hope of good performance for the sector in 2021 would depend largely on growth in the general economy.
The whole economy, he said, is down, despite what government has said. Idudu explained that as many people find it difficult to feed because the prices of food have skyrocketed, they are debarred from thinking of owning a property or going into property investment.
He urged policy change based on previous advice and ensure a general improvement in the economy pattern to reflect the reality.
According to him, “Government should move away from its control on land, and ensure that land ownership is free so that people can use their lands to borrow money and do businesses. “Government ownership on land won’t help. Where we are on the ease of doing business in the world is a disgrace. We are at the bottom.
“I don’t foresee any good news. The economy is down. The property industry is the one that would only improve when there is a general growth. People will generally not invest in property, which has a long gestation during difficult times,” he said.
