A real estate expert, Zubbi Nwosu, has warned that the value of real estate assets in Nigeria is losing value every year by 10%.
Nwosu, who spoke at a recent real estate forum in Lagos, Nigeria, said that the situation for real estate and for virtually every sector of the Nigerian economy is “horrible.” He added that it is laughable to pretend that people who are investing in the real estate space have made a profit in the last five years.

Nwosu also said that the situation for real estate is particularly bad in Lekki, Banana Island, and Victoria Island in Lagos state. He said that there are far more units available for sale than any capacity to buy them. He said that the reason for this is that the pricing has remained visually high, so most of the sellers do not need the money. “Many have actually lost money horrendously,” Nwosu said. “Most of Nigeria’s problems are predicated on the falling value of the naira.”

“The government needs to reduce its spending and to improve the messaging of the economy,” Nwosu said. “The government needs to start acting and not just talking.”

“Many people took positions in real estate, hoping to pay school fees for their children abroad,” Nwosu said. “Now, when they need money, they find out that they would have been much better off if they had kept their money in US dollars.”

“The politicians cannot be spending money frivolously, and that there must be accountability,” Nwosu said.

Nwosu’s comments come as the Nigerian economy is struggling. The naira has lost value against the dollar, and inflation is high. The real estate market has also been affected by the economic downturn.

Courtesy: The Nation Newspaper