The anticipated dynamics of the 2024 Housing Market are influenced by various factors. This analysis delves into the economic trends, mortgage rates, supply and demand dynamics, and the profound impact expected from the newly established Federal Ministry of Housing and Urban Development.
Economic Growth
One of the primary driving forces behind the housing market predictions in 2024 is economic growth. Experts anticipate that there will be a continuation of the economic growth trend during the next year. This is an encouraging indicator for the housing market since economic growth usually leads to rising incomes and an increased demand for homes. However, it is essential to recognize that if there were a downturn or recession in the economy then it could significantly dampen demand for houses. Thus, achieving stability becomes pivotal as it can either bolster or hinder the performance of housing markets in 2024.
Supply and Demand Dynamics
The delicate balance between supply and demand continuously drives trends within the real estate industry as well as holding significance towards future developments therein; hence expect a similar scenario during forthcoming years including notably around limited availability pertaining land resources alongside ascending construction costs compounded by an ageing population less likely sell their properties resulting scarcity contributing towards upward pressure upon prices thus posing affordability challenges potentially faced by prospective buyers while simultaneously benefiting sellers from possibility associated with heightened sale prices thereby comprehending such dynamics holds importance anyone intending to buy/sell homes throughout upcoming years.
Federal ministry of Housing and urban Development likely impacts
The Executive Director, Housing Development Advocacy Network (HDAN), Festus Adebayo, has predicted that the Housing Sector will perform better in 2024.
Adebayo made this known while Speaking to reporters on Sunday, in Abuja. He predicted that based on the current blueprint being laid by the current administration, the Industry was set to witness tremendous development.
He said “ The new Minister of housing has started on a good note. He has constantly assured us of government support towards the development of the Sector and I can predict that we will witness improvements in the performance of the sector. The minister will in the first month of January begin work on the Various Policies initiated to move the sector Forward. I am aware that four commitees will be inaugurated and they will address various areas that will contribute to real estate development in Nigeria. A major ingredient that has been lacking in recent times is solid government support in the area of Mortgage development, raising funds from capital market, access to land, among others. This will be tackled headlong by the new ministry of housing and urban Development”.
READ ALSO: The 15 Largest Real Estate Companies In The World In 2023
Adebayo also commended the partnership between the new leadership of the Ministry and the Nigerian stock Exchange, hailing it as a collaboration that will unlock the potentials of the Stock Market. He also called the attention of the ministry to data gathering having signed mou with NPC
He also called on State Governments to invest in the Housing Sector in their respective States so as to contribute in repositioning the sector. Finally, Adebayo also charged the leadership of the FCT minister, Nyesom Wike to invest in the infrastructure of the city, and also end so many cases of land grabbing , this no doubt will create an enabling environment for the private sector to thrive with our requests, we can Predict an improved real estate sector in 2024
Prediction For 2024
In summary; forecasting toward upcoming year’s Real Estate Markets contains a mix of positive/and negative elements ranging from Economic Growth predicting increased demand whereas Mortgage Rates expected to rise Supply/Demand Dynamics indicating scarcity contribute toward upward price pressures yet pose affordability challenges whilst Millennials entering Home Buying Age Group present opportunities/demands requiring adaptation catering specific inclinations/preferences aforementioned demographic group therefore comprehending/monitoring related factors remains crucial requisite helping navigate through ever-changing terrain characterizing Real Estate Sector over foreseeable future.
READ ALSO: 2024 real estate predictions from experts across the country
Local Trends
It seems that in Abuja, there are a few factors that are driving the property market. Firstly, The arrival of politicians, technocrats, and their aides in FCT has led to an increased demand for rental accommodation, as a new administration is set to take over. Secondly, the diaspora market, which includes Nigerians living abroad and investing in the Nigerian property market, is set to boost demand, leading to a more robust market. And thirdly, with the commencement of a new administration, contracts will be awarded and funds will be released for existing contracts. This means that businessmen and contractors will have enough funds from the proceeds of their various businesses and contracts to purchase a property. However, the surge in property values is proving to be a challenge for many Nigerians who cannot afford the high-end prices. This surge in property prices is due to estate developers, landlords, and property agents who are cashing in on the high demand for housing.
Diaspora market now advantage to invest in Nigeria real estate
The issue of high cost of building materials and inflation in Nigeria economy will make diaspora market the biggest target for real estate market in 2024 says HDAN. According to Festus Adebayo, we have many events to attract investors into Nigeria real estate market in 2024 and this will hold in UK, USA, Canada, Dubai.