Before we talk about the 2024 housing trends, let’s get some statistics in. In 2023, the real estate industry in Nigeria was marked with a major touchpoint – the removal of fuel subsidies earlier in the year. The decision by the government to lift fuel subsidies had far-reaching consequences that directly affected the purchasing decisions of Nigerians. It also imposed increased construction and operational costs on the real estate sector. It’s 2024, and fuel subsidies remain lifted leading to higher energy costs for property management. A situation that has affected both residential and commercial real estate operations.
In the second quarter of 2023, Nigeria’s real estate sector grew by about 1.87 percent compared to the same quarter of the previous year. Over the observed period, the growth rate reached its highest value in the third quarter of 2022, as it grew by 4.56 percent compared to the same quarter of the previous year. As it is early enough in the year 2024, it’s crucial to anticipate the housing trends that will influence the market in the coming year. From innovative design concepts to changing preferences, here’s what we can expect in real estate.
2024 Housing Trends
Financial insights from Statista show that:
- The Residential Real Estate market in Nigeria is expected to reach a value of US$1.93tn by 2024.
- This projection indicates a significant growth potential for the country’s real estate sector.
- Additionally, it is anticipated that the market will experience a compound annual growth rate (CAGR) of 7.32% from 2024 to 2028.
- As a result, the market volume is projected to reach US$2.56tn by the end of 2028.
In the second quarter of 2023, Nigeria’s real estate sector grew by about 1.87 percent compared to the same quarter of the previous year. Over the observed period, the growth rate reached its highest value in the third quarter of 2022, as it grew by 4.56 percent compared to the same quarter of the previous year.
Sustainable Living Takes Center Stage
In 2024, sustainability is not just a buzzword but a guiding principle in real estate. Homebuyers are increasingly prioritizing eco-friendly features, from energy-efficient appliances to solar panels. Developers are responding by incorporating green building practices, emphasizing both environmental responsibility and cost savings.
Tech Integration in Smart Homes
The rise of smart home technology is set to continue. Homebuyers are seeking residences equipped with the latest tech innovations, such as smart thermostats, security systems, and energy management tools. Real estate developers will likely focus on integrating these technologies seamlessly into new constructions.
Flexible and Remote-Friendly Spaces
A significant segment of house seekers in Nigeria are young people with remote or hybrid jobs, and the remote work revolution has transformed the way we view our homes. Expect a surge in demand for properties with dedicated home offices, flexible workspaces, and improved connectivity. Real estate professionals will cater to the needs of a workforce that increasingly values the versatility of their living spaces.
Urban Revival and Suburban Appeal
The allure of urban living remains, but the suburbs are gaining renewed attention. As remote work becomes more prevalent, homebuyers are exploring suburban areas that offer a balance between proximity to urban amenities and the tranquility of suburban life.
Affordable Housing Solutions
Affordability continues to be a significant concern for many prospective homeowners. The real estate market will likely witness an increased focus on affordable housing solutions, with developers exploring innovative financing models and governments implementing policies to address housing accessibility.
The 2024 housing trends reflect a dynamic and responsive real estate market. Whether it’s embracing sustainability, integrating cutting-edge technology, or redefining the concept of home, 2024 promises a diverse array of opportunities and challenges for both buyers and sellers. Stay tuned as the real estate landscape continues its fascinating evolution.