HOW INFLATION IS AFFECTING PROPERTY PRICE IN NIGERIA & WHY YOU SHOULD INVEST IN REAL ESTATE NOW





HOW INFLATION IS AFFECTING PROPERTY PRICES IN NIGERIA & WHY YOU SHOULD INVEST IN REAL ESTATE NOW

Inflation is a major economic issue in Nigeria that affects everything from the price of food to transportation and, most importantly, real estate. In the real estate industry, inflation is the steady increase in building costs, rents, and property values typically brought on by rising demand, supply constraints, or economic factors. The average Nigerian now finds it more difficult to become a homeowner due to the recent increase in real estate prices, but savvy investors have a unique opportunity.

How Nigerian Real Estate Prices Are Rising Due to Inflation 

1. Rising Cost of Building Materials: Steel, cement, roofing sheets, and other building materials have become much more expensive due to inflation. For instance: In 2025, a bag of cement that cost ₦3,500 in 2021 is nearly three times as much. Additionally, the price of labor, blocks, and rods has doubled. Developers pass these costs on to buyers, which drives up the price of real estate. 

2. High Land Prices Due to Scarcity and Demand: In cities like Lagos, Abuja, and Port Harcourt, there is a shortage of land, but demand is still high due to population growth. Inflation drives up land prices even more because sellers raise prices to reflect rising living expenses.
-Investors buy land as a "hedge against inflation," which intensifies competition.

3. Weak Naira & Import Dependency: Because of the depreciating value of the Naira (₦), Nigeria is heavily reliant on imported building materials, which are more costly. As the dollar exchange rate keeps rising, developers adjust real estate prices to stay profitable. 

4. Growing Interest in Real Estate as a Secure Investment: More Nigerians are turning to "real estate" as a haven as bank savings are being eroded by inflation. This increased demand leads to a natural increase in prices.

Why Real Estate is One of the Best Inflation-Proof Investments

1. Property values rise over time: Unlike cash, which loses value due to inflation, real estate usually appreciates. Land and buildings in coveted locations (Lagos, Abuja, etc.) are appreciated annually. 

2. Rental Income Adjusts to Inflation: Landlords can increase rent in response to inflation to ensure that their profits keep pace with economic changes. 

3. Real estate is a physical asset. Unlike stocks or cryptocurrencies, real estate is a physical asset that is always there. Regardless of changes in the market, buildings and land retain their value.
4. Guard Against Currency Depreciation: Because real estate is valued in Naira but has intrinsic value, it protects investors from the Naira's decline against the dollar. 

CONCLUSION
Act immediately to stop future price hikes. Inflation is driving up property prices in Nigeria, but this also indicates that real estate is becoming more valuable. Investors should buy now to avoid further price increases. Whether you're buying a house, land, or rental property, real estate remains one of the safest and most profitable investment options in Nigeria's current economy.

You can Also Send a Direct message here to schedule an Inspection with Notredame Estates Limited.

Signed 

Propertyhub
For,
Notre Dame Estates Limited.




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