You don’t need a soothsayer to see that there has been an upsurge in the demand for rental income in recent years and the reasons are not far-fetched.
Real estate as it is, remains one of the longest-standing, most competitive industries after oil and gas in Nigeria. As rental rates have gone high, a commensurate response by owners of lands, contractors, and property developers has resulted in a high supply of rental units across the country as we can now see birthing the need for more housing units to be constructed.
The property market has therefore recorded a high profit in recent years.
Statistics and reports have shown how many seekers of accommodation, and tenants in general lament over the cost of housing and sudden increase in the original prices of rent by their landlords and what’s more, with short notice.
Let’s consider some factors that have contributed to these soaring demands.
1. HOUSING DEFICIT
The International Human Rights Commission has recorded that the housing deficit in the country currently has reached a staggering 28million housing units. There are nearly 62 million people facing homelessness in the country and more than 80% of the Nigerian population live in improper housing conditions. This has impressed the need for more housing units to be constructed and managed to cater to the needs of these numbers.
This goes without saying. The Nigerian economy has been plagued by high inflation as prices of even the simplest of everyday goods and commodities have been on the high side. In the last 5 years, the inflation rate has reached an all-time high of 18.6% since 2017 as disclosed by the National Bureau of statistics. This has also affected the cost of construction materials, infrastructure taxes, and maintenance of building facilities. Consequently, the prices need to be reviewed to meet up with the rising demands.
The location of properties and housing estates and their access to modern infrastructures, proximity/availability to lifestyle and recreational facilities also have an impact on the rental demand. A property on Lagos Island for example would most definitely worth a lot more than one on the mainland. Locations with site attractions like parks, malls, gyms, game centers and pools in the environment also play a major role in the demand for houses in that area in a positive light.
4. PROPERTY ASSETS
As the stress levels are relatively high in the country, many individuals, professionals and families crave the comfort of a home with convenience and lifestyle as well as motorable road network and recreational provisions. When things like these are put in place, there will be a high demand for such rental facilities thereby increasing the price.
These and many more are the reasons that have affected the high demand in rental income.
Real estate as we have seen is a booming industry that needs to be fully tapped into. What will YOU do about it? Invest in the property market today and reap the benefits. Looking for Rental Income Properties? Call 09163214545.
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