As real estate investors consider ways to improve their odds of financial success against soaring inflation, analysts at Mixta Africa have highlighted four growth drivers that will help maximise returns and minimise risks in 2024.
The growth factors, which formed part of its 2024 Real Estate Outlook according to Mixta Africa Analysts, include Mixed- Use Developments, Technology, Sustainability and ability to identify emerging opportunities.
Mixta Africa is a real estate company committed to building communities of affordable housing across Africa and championing the “Eko REimagined” project – Lagos New Town.
It is positioned to aid investors navigate the complexities of the Nigerian real estate market and contribute to both the financial success of the investor and the growth of the Nigerian real estate sector
Here are more details on the factors
Mixed-use developments
One prominent trend in the Nigerian real estate sector is the rise of mixed-use developments. This refers to creating multifunctional spaces that blend residential, commercial, and recreational elements. This approach not only maximises land use but also caters to the diverse needs of urban populations, creating vibrant and sustainable communities.
Technology
A consistent game-changer, the technological emergence of proptech solutions is creating a distinctive, simplified, and more efficient experience around property ownership and leasing. Proptechs utilise technology to provide solutions that leverage advanced data and analytics to gain feedback, improve sales, and better manage the lifecycle of projects.
This has streamlined processes and enhanced decision-making. Investors who leverage these technologies gain a competitive edge by making informed choices with access to big data and, thus, optimise their portfolios.
Sustainability
Sustainable and eco-friendly practices are gaining prominence in real estate development. With a growing awareness of environmental issues, investors are increasingly incorporating green building designs, energy-efficient solutions, and eco-conscious amenities.
This aligns with global sustainability goals and resonates with environmentally conscious consumers, thereby adding long-term value to the investment.
Identifying emerging opportunities
Real estate crowdfunding is gaining traction in Nigeria, democratising access to the property market. This allows small investors to pool their resources, giving them a share in larger real estate projects. With the national housing deficit figures rising from 14 million in 2010 to 28 million in 2023, the affordable housing sector stands out as another high-potential area, when the country’s population of about 226 million in 2023, and the pressing need for accessible housing are considered.
Finally, the rise of secondary cities/districts, like Lagos New Town strategically located along Ibeju-Lekki, Lagos, presents a unique avenue for investors to advantageously position themselves in these areas, benefit from early-mover advantages and capitalise on the potential appreciation of property values.
