Property technology will drive investments in real estate, especially the residential sub-sector, this year, a new report has said.
In its 2019 Nigeria Real Estate Market Outlook, Northcourt, a real estate investment and research company, said the industry would see more supply across the various sub-sectors but with varying levels of demand.
According to the report, the developments will be driven by new technologies, and both the government and private developers will be more innovative in products delivery.
The report added, “The residential market will see more partnerships involving Proptech firms and the introduction of data-driven products and services. Well put together property startups are raising funds from local and foreign investors who are not averse to potential risks-vis-a vis the high yields obtainable.
“The Federal government, coming to terms with the impact of housing will begin delivery from adopting a number of models.”
It stated that landlords would also be more open to nil increases and slight reductions in rent renewals as tenants wait till after the elections to make major property decisions.
“2019 will see a boom for the savvy real estate investor,” the report added.
According to the report, the provision of housing units by the Family Homes Fund and the Federal Housing Authority in Nasarawa, Ogun, Delta and Kano states and parts of Abuja is expected to be more visible this year and will assist in reducing the deficit.
It stated that land authorities would be resolving zoning infractions to create opportunities for residential development, adding that there were indications that the originally residential areas of Lekki Phase 1 in Lagos, which is fast becoming commercial, would be returned to its original use in 2019.
It added that eight states – Akwa Ibom, Benue, Cross River, Edo, Gombe, Kebbi, Kogi and Plateau were working on making homeownership easy for their indigenes, and were expected to conclude the process of adopting the Model Mortgage and Foreclosure Law soon, while Ogun State awaits the governor’s approval.
“Lagos and Kaduna states have enacted mortgage model laws unique to their circumstances,” it said.