Estate Surveyor and Valuer ESV. Ageh Ayokunle Oluwaseyi has outlined the
impact of inflation, exchange rate volatility on Nigeria’s Real Estate Market.
ESV. Oluwaseyi stated this yesterday in Abuja .
He said that
Nigeria’s real estate sector is a vital driver of economic growth, has not been immune to the combined forces of rising inflation and exchange rate instability.
He disclosed that
the persistent depreciation of the naira has led to surging costs in construction materials, rent adjustments, and project delays redefining the investment landscape for developers, investors, and homeowners alike.
He maintained that over the past few years, the cost of key materials such as cement, reinforcement rods, and fittings has doubled or even tripled, largely due to foreign exchange scarcity and import dependency. Developers are struggling to keep projects viable, while buyers and tenants face affordability challenges.
Investor Caution and Market Adaptation
He explained that the exchange rate volatility has made it difficult for investors to plan long-term. Developers relying on imported components must constantly adjust budgets to match inflation trends. In response, landlords in premium markets are increasingly indexing rent to the dollar or adjusting lease terms based on inflation projections—a trend that could further marginalize middle-income earners.
He disclosed that however, amidst these challenges, real estate remains a strong hedge against inflation.
“Land and property values often appreciate faster than inflation, preserving wealth and providing long-term stability. Investors are now leaning toward value retention strategies such as land banking and rental income portfolios rather than speculative flipping”.
The Way Forward
He cushion the sector, saying that government must stabilize monetary policy, promote local production of building materials, and ensure steady access to foreign exchange for critical inputs.
He emphasized that Estate Surveyors and Valuers have a professional responsibility to guide clients through these economic shift providing accurate valuations, feasibility studies, and market forecasts that reflect current realities.
He stated that despite macroeconomic turbulence, the Nigerian real estate sector remains resilient.
“With strategic policy reform and professional insight, it can continue to serve as a dependable pillar of national development”.
