The Nigerian economy entered recession in Q3 2020 as the impact of Covid-19 wreaked havoc on several sectors including real estate, which has been in recession since Q3 2019, reaching 21.99% in Q2 2020. before falling to 13.4% in the third quarter.
However, reports across Lagos indicate that real estate developers continued to build during the pandemic months of 2020, fueled by increased demand for residential housing.
Nairametrics research understands that millions of dollars of diaspora entries are funneled into the sector. In search of higher returns, Nigerians living abroad withdraw equity from their mortgages, and then funnel some of the proceeds into the country’s real estate market.
The wave of housing construction in several localities in Lagos gives hope for an imminent recovery of the sector in 2021. This development has allowed industry players to be optimistic that despite the second wave of the pandemic, the sector will produce returns for investors in 2021 for a variety of reasons.
