For home buyers, this is their season of joy. Property prices; homes and lands, have fallen and continue to fall. For those really desirous of buying homes or lands at good bargains, there is no better time for them than now.
The housing market in Nigeria is developing fast. Housing estates are springing up in different cities of Nigeria, especially in Abuja.
The Abuja housing market appears to be the most phenomenal in growth. Many factors have contributed to throw up this season of low prices.
Apart from the key issues of increased effective government housing policies, there are cyclical events that have contributed to making property purchase easier and cheaper now. However, prices of properties will go up again as these cyclical phase passes.
Why are property prices low now? One of the reasons is the Christmas season that has arrived. Property owners, including estate developers are now selling on discounts. Offers are being made to entice property buyers now and those who understand the market are now making purchases which they may resell when prices go up again.
Another reason why property prices are low now is because of the coming general elections. This is the campaign season and many politicians are selling off their homes and lands to raise money for their campaigns. So, a lot of properties from politicians have come into the market at below market rates, driving prices down. With a seeming glut in properties, even developers have been forced to reduce home prices.
Low property prices have also been helped by government’s sudden interest to reinvigorate the housing market. Several retreats last year by government agencies including the Ministry of Finance, Central Bank of Nigeria (CBN), Federal Ministry of Lands, Housing and Urban Development, along with housing development stakeholders have given rise to greater housing outputs like the 10,000 housing units being developed by the federal government to kick-start its first phase of the 10,000 mortgages being offered currently by the newly created Nigerian Mortgage Refinancing Company (NMRC).
At the launch in Abuja recently, Minister of Finance, Dr Ngozi Okonjo – Iweala, said the Federal Government’s 10, 000 mortgage scheme was inspired by the President’s pledge on January 16 this year when he launched the NMRC to make mortgage accessible to facilitate homeownership among Nigerians.
The recent recapitalization of Primary Mortgage Institutions (PMIs) by the CBN has also led to increased housing development and mortgage availability to home buyers. With the National Assembly about completing work on the Social Housing Bill and other housing related bills pending before both chambers, things can only get better in Nigeria’s rising housing sector.
For now, enjoy the season’s low prices.