COVID 19 PANDEMIC AND THE REAL ESTATE SECTOR NIGERIA: THE WAY FORWARD

Abstract

This study assess the COVID-19 pandemic and the real estate sector in Nigeria with a view to proposing the way forward. The study focused on events of COVID-19 pandemic on the real estate sector with a view to evaluating the pandemic on the real estate market before, during and after the COVID-19 crises. The real estate sector in Nigeria faces potential challenges arising from the lethal viral outbreak called corona virus disease 2019 (COVID-19), which has brought the world and economy to almost a total shutdown. The severity of this situation brings about project delays,unfavourable leasing and sales activities. The study was conducted across Nigeria. Using simple random sampling technique, one hundred and three (103) questionnaires were transmitted online to respondent real estate practitioners across Nigeria. The data was analyzed using descriptive statistics. Primary and secondary sources of data were obtained for the study. Statistical Package for Social Sciences (SPSS) and weighted mean was used to analyze the data. The study found that most real estate practitioners experienced low business patronage.Practitioners were compelled to review their rents and land prices downwards, and recorded low rate of valuation proposal offers. The study also found a high increase of distressed land sale offers as a result of the excruciating COVID-19 pandemic. The study recommended that real estate practitioners should leverage on use of vast technology to intensify the bulletin of their products while offering reduced land prices and rent, during this period. Practitioners should engage more in viability appraisals to advice clients on worthwhile investments and best land uses for the future. The study furthermore recommends that real estate practitioners should employthe most modern, digital tools at its disposal to handle house sales even when personal inspection of a property is no longer possible. The government through their central banks and mortgage financing regulatory agencies should urgently roll out different fiscal stimulus for real estate industries in order to sustain investments, save millions of low-income jobs and sustain the production of housing for low to medium-income earners. The government should reduce interest rates on mortgages and increase access to mortgage finance loans from all banks at special rates to ameliorate the situation posed by the COVID-19 pandemic.