Rising inflation, market volatility and a shortage of skilled professionals are exerting pressure on Nigeria’s real estate sector, according to industry expert Olugbami. Inflation refers to the sustained increase in the general price level of goods and services, while market volatility describes rapid and unpredictable price movements that affect investment decisions.
Olugbami noted that the combined impact of these factors has significantly increased the cost of construction materials, making it more difficult for developers to complete projects within budget. He explained that fluctuations in exchange rates have also contributed to higher costs, particularly for imported building materials.
Industry observers say the real estate sector has struggled to maintain stability amid broader economic challenges. Stakeholders point to reduced purchasing power among potential homeowners, which has slowed demand for residential properties.
The talent gap remains another major concern, with developers facing difficulties in sourcing skilled labour for construction and project management. Experts warn that without adequate training and investment in human capital, the sector may continue to face productivity challenges.
Olugbami emphasized the need for strategic interventions, including policy support, financing solutions and capacity building programmes.
Analysts believe that addressing these structural issues will be critical to sustaining growth and improving the sector’s contribution to the economy.
