For some Nigerians there seem to be little hope left of the so called Vision 2020 which is aimed at positioning Nigeria as one of the top 20 economies in the world. This article takes a critical look at the present economic realities, effects of technological advancement and how all of these will affect real estate in Nigeria in the golden year of 2020.
Though the Nigerian economy is one of the most developed economies in Africa, however, outside the petroleum sector, the economy is underdeveloped and it suffers primarily due to the country’s deficiencies in basic infrastructure and epileptic power supply. The present economic realities and drop in oil production have now become major obstacles to our economic sustenance
The present economic upheaval the world is facing which is having full adverse effect in this part of the world are daredevil indications that vision 2020 may just be yet another wild goose chase. Monumental corruption and bad governance are other major stumbling blocks to the actualization of the said vision 2020.
But what does this portend for real estate in Nigeria?
With 2020 less than a decade away, the Nigerian Real Estate Sector should pin faith on the great white hope of landmark tour de force from almost all facets of human avocation in 2020 as promised by the last administration, which predicts that Nigerian should be among the 20 biggest economies in the world by 2020. However, with the situation of things in the country at the moment, suffice it to say that, that can only happen if Pigs begin to fly by then, considering the fact that 2020 is only four years away. So, is vision 2020 in relation to Nigeria yet another hypothesis?
Nonetheless, we are not ruling out the possibility of this never ending dream coming to fruition and when it does become reality, there will be need for Nigerian real estate investors and sundry players to decipher economic and demographic shifts because expectedly, these shifts are going to change investment landscape in this sector by that golden year.
Adversely, it is also believed that the economics of real estate will hang in the balance within the same period. Since technology continues to mindlessly nosedive into every ounce of human existence with reckless abandon. Consequently, it is expected that there will be a striking imbalance in demand for, and supply of retail and office spaces due to the growth in online shopping and virtual office.
Though, I don’t see the challenges induced by a rapidly growing human friendly technological advancement inciting a worrisome rivalry with the opportunities abound. Provided that there is a complete understanding of the economic and the demographic shifts that will overhaul the real estate investment landscape, then the job is half done in 2020.
Rapid urbanization and demographic changes, especially within emerging markets is too much a competition for a decline in the demand and supply of retail and office spaces caused by a technology epidemic and if the latter pushes her luck a tad more, there can only be one outcome; a substantial growth in real estate investment.
The supposed havoc that a divergent technology invasion will cause the economics of the real estate business by year 2020, will also maximize real estate investments if its full potentials are exploited relentlessly and adequately.
Therefore, real estate professionals and investors should not overlook the application of technology in this thriving sector of the economy, in fact they should be flirtatious in the application of technology in real estate especially when she’s ready to go all the way with all spheres of human endeavour that deems her worthy…who wouldn’t?
This is paramount in other not to be on the back foot in a year that has been earmarked for dreams to come true!
Applying technology in real estate business has become imperative because intense competition for prime real estate is likely to cause real estate managers and investors to seek out new opportunities for yield and as they venture into new territories, the growing and changing real estate world would present them with wider range of risks which they should be equipped to manage.
Did I hear you say “real estate is not as boring as I thought?”
There is a going urge to join the real estate train, so don’t put off till tomorrow what you can do today.
The future is now! Why wait till 2020?