An online real estate marketplace, BuyLetLive, has stated that a large chunk of value, especially within the residential and land asset classes in Nigeria was lost due to the opaqueness in the market.
The Chief Executive Officer of BuyLetLive, Gbenga Osowe, disclosed this in a statement on Monday while announcing the launch of the second edition of its annual report tagged ‘2023 Nigeria Property Price Index Report’.
According to Osowe, the 38-page report analyses price movements in Nigeria’s real estate market in 2023 and includes opinions on topical issues.
BuyLetLive is a Nigerian proptech that connects people seeking to rent properties, lease or purchase with verified real estate agents, developers and homeowners, offering advisory and media promotion services to developers who want more visibility and leads for their developments.
He explained that the Nigeria Property Price Index Report is an artificial intelligent powered real estate portal that helps real estate buyers and sellers to consummate transactions in minutes
Osowe quoted a Pricewaterhouse Cooper International Limited publication that puts the value of dead capital in Nigeria’s real estate market at $900bn.
“A large chunk of value, especially within the residential and land asset classes in Nigeria, was lost due to the opaqueness in the market. Fixing this problem from a private sector perspective will require a concerted effort in market research.” Osowe said.
Also, the BuyLetLive Research Team Lead, Martin Uche, stated that there was an overall spike in property prices with a double-digit increase in residential real estate prices across the country.
“The increases were underpinned by rising cost of building materials, forex volatilities and operational costs,” Uche said.
He added that since 2018, the commercial real estate market had continued to struggle either due to oversupply, decreasing occupier pool or shrinking purchasing power.
“This has been more pronounced in Lagos and Abuja, particularly in the market for large-scale prime retail and office projects,” he stated.
He noted that the proptech space, which was once a darling to investors, hit a rough patch in 2023 due to global financial market volatility.
