Over the years property prices continue to rise and this trend shows little sign of stopping. From Edo to Lagos to Abuja and even cities like Ibadan, Port Harcourt and Enugu is not left out. For both prospective property owners and real estate investors, understanding the factors contributing to this growth can be essential for making informed decisions. In this blog post we will be discussing the reason why property prices continue to rise in Benin City.
One of the major reasons property prices continue to rise in Benin City is due to the high demand by her citizens. Times have changed and the younger generation is opting to own their properties rather than living in their father’s house. These younger buyers are highly motivated to purchase homes for stability, independence, and investment purposes. Most of the recent development experienced in Benin City can be attributed to the unwavering desire by the youths to their own properties. This significant demand has contributed to fierce competition, particularly in desirable suburban and urban areas, which drives prices up as more buyers compete for limited inventory.
Benin City is currently undergoing tremendous infrastructural development as such the property prices continue to rise. Areas with infrastructure peg prices for real estate properties at high rate. This is because everyone will want to have a property in areas that has infrastructures as it is easy to get buyers or generate rental income without stress.
Nigeria has experience series of inflation and currency devaluation. This has led to increase in the process of properties. A few years ago, you could get a plot of land for less than 500,000 in strategic location in Benin City but right now due to inflation and currency devaluation that is possible.
Additionally devaluation of naira has made it more expensive for real estate developers who rely on imported materials. With naira losing value against foreign currencies, developers must charge higher prices to recoup their cost, contributing to the overall rise in home price.
Government policies and regulations have also played a role in the rising cost of homes. Land acquisition processes in Nigeria can be complex and costly, often involving multiple fees, legal challenges, and delays. These challenges add to the final cost of properties, which developers pass on to buyers.
The COVID-19 pandemic caused a shift in where people want to live and how much space they need. Remote work became a standard, and many individuals sought homes that could accommodate office space and provide a better quality of life. Suburban and rural areas saw a surge in demand as people looked for larger homes, backyards, and more space. As demand rose, so did prices in these areas, contributing to overall national increases in home prices.
With the volatility of Nigeria’s financial markets and economic uncertainties, real estate has become one of the most attractive investment options for Nigerians. Investors view property as a stable, long-term asset that can preserve wealth and provide returns in an economy plagued by inflation and currency fluctuations. Investors buy properties to rent them out or resell them at a profit, which adds competition for regular buyers. With significant capital, institutional investors have been able to purchase large numbers of homes, sometimes outbidding individual buyers, which further pushes prices up.
While it’s challenging to predict exactly how long this upward trend will continue, most experts agree that as long as demand outpaces supply, prices will likely keep climbing. Policymakers are exploring solutions, such as loosening zoning laws and incentivizing new construction, but these changes will take time to impact the market.
You can also read How to buy a property with little or no money
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