Dolapo Omidire, CEO of Estate Intel was a guest on CNBC Africa’s Closing Bell West Africa this Tuesday to discuss the impact of COVID-19 on Nigeria’s Real Estate sector. The discussion follows the publication of the Nigerian Real Estate and COVID in 19 slides report by Estate Intel which outlined the impacts of the pandemic on the real estate market generally, the impacts on the market participants, the potential winners and losers among the real estate sectors and the next steps moving forward.
Recurring themes include mass concessions, re-negotiations and restructuring activity, slowed decision making, stretched out project deliveries due to the lockdown and more.
He was able to share further insights in the interview, attributing the impending deeper fall of the real estate sector to the heavy reliance on foreign imports for construction which has been impaired by the disruption of the global supply chain and the dependence on foreign investment in Dollars to finance developments which is not matched by the revenue generated in Naira.
He shared some positives, however, which could be the silver lining for the real estate sector. The reduced mobility of people around the world has led to the creation of some new products and increased adoption of some older ones which help users in one way or the other to cope with the effects of social distancing. These products need some form of real estate service at the center of their operations. Market participants are already starting to shift focus to these areas with data centers, warehouses and industrial parks among others already attracting large investments from real estate investors.
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