Construction activities at various sites across Nigeria have significantly slowed as inflation continues to escalate, a real estate consultant, Mr. Debo Adejana, has said.
Speaking at a media briefing in Lagos, Adesina disclosed that developers and property managers had expressed growing concerns over the sluggish pace of construction, which is impacting the overall health of the sector.
Adejana outlined the detrimental effects of the current economic pressures on the construction sector, noting that soaring prices driven by high inflation are significantly impacting sales and slowing activities at construction sites.
He stated that rising prices in the real estate sector are a direct result of high inflation, while simultaneously, people’s disposable incomes are shrinking.
This, he said had also led to slow supply in the industry, leading some sites to be dormant and projects unfinished,” he said.
Adejana added that many construction sites are currently either dormant or experiencing significantly slowed activities due to the prevailing economic conditions.
He explained that the challenges facing the real estate sector present valuable opportunities for scholars to draw inspiration and expand the goals and frontiers of the industry.
Also commenting, an analyst at Estate Intel, Dapo Runsewe, stated that the current macroeconomic climate is challenging and cannot be overlooked.
Prevailing economic conditions, he noted, are significantly influencing various sectors, including real estate, and require urgent attention from stakeholders to navigate the complexities and mitigate their effects.
Runsewe noted that macroeconomic headwinds have subdued the rental market, as occupants are increasingly opting for smaller living spaces.
According to him, companies have chosen to downsize or exit the market altogether, which is affecting occupancy rates.
