Change is constant and this saying has been proven to be true in the real estate industry. With many changes in response to demand and the general economy springing up by the day, the reality of change in the real estate space is much more visible. Between the space of January 2020 and January 2021, a lot of changes have been recorded in the real estate space particularly due to the transition to remote work by many individuals. This is asides the high rate of job losses and job cuts that the employment industry has now become characterized by as a result of the pandemic. A report curated by the World Bank has directly credited the high job loss rate and increased unemployment to the pandemic.
Here are a few real estate trends across Nigeria to be leveraged on in 2021:
- Flexible Office Spaces
An adjustment to the after effect of the COVID 19 pandemic has made a demand for flexible office spaces to be on a constant rise. Although office spaces have always been in demand, the demand for them has changed to become a little more directional in that the office spaces closer to residential areas are seeing an increase in demand The demand has adjusted.
- Growth in Demand For Micro Apartments
Creatives have greatly increased over the years, with this increase has a corresponding rise in micro apartments being birthed. These Micro Apartments feature small studio apartments typically under 35sqm with a kitchen and bathroom. According to an Oxford Business Group release, the demand of these micro apartments are steadily rising.Not only do they offer autonomy, privacy, convenience and flexibility but they also are better organized and more moderately priced hence more affordable for residents. Small studio apartments with separate kitchens and bathrooms, 1 and 2-bedroom apartments, are among the apartments in demand.
- Digitalization of Real Estate Companies
Prior to COVID-19, there was a greater emphasis on just social media advertising , print media and office visits, however, the onset of the pandemic has put a double emphasis on the need for virtual offices hosted on websites and more intense social media advertising. Globally several reports show that 95% of customers now search for homes via digital platforms, and about 51% end up buying homes found online.
Furthermore, tech adoptions will aid targeted customer-centric services, and increase aggressive delivery in the Nigerian real estate sector.
- Increased Demand For Residential Leases in Secure Gated Communities
According to a recent June 2020 report by Northcourt, the real estate development market is becoming more security-conscious in the wake of the recent security breaches following the country-wide ENDSARS protests.
In 2021, experts predict a spike in demand for apartments within gated estates that leverage the experience, expertise, and network of estate management companies and estate occupiers.
In addition to that, expert predictions forecast an increased bias for homes in the suburbs away from major streets. Also, there is also a palpable shift towards garden-style communities which offer better living environments which are fit for social distancing with many open spaces, and greater air circulation.
- Increased Demand for Private Offices
A report by PropertyPro predicts that building designs that are not changing work preferences may become obsolete. More open-plan arrangements are becoming the norm and if the building cannot be repurposed to fit this structure as time goes on , the need may decrease. Also, according to the Global Property Guide, this repurposing will include changes such as a design of floor plans, improved air filters, touchless lighting control, faucets, and automatic doors.
- Increased Demand For Inner City Warehouses
Slowly but steadily, the reliance on ordering on websites as supposed to visiting onsite stores, Due to enhanced buyer demands, and increased online sales stemming from the lockdown in 2020, buyers are relying more on online purchases for quick and easy delivery of their merchandise as opposed to brick and mortar businesses they had hitherto relied on.
Demand for warehouses increased due to an increased need for storehouses by production companies. Therefore, experts predict a boom as a stable supply to consumers will have to be maintained; because it will require more largescale stockpiling.
Finally, real estate has taken rather unexpected turns. The office market will lose some ground to the growing residential market which has seen an increased demand for 1 and 2 bedroom apartments, nestled away from major streets.
Furthermore, environments where people work almost shoulder to shoulder, in closed poorly lit spaces, will no longer be attractive as the aftermath of the pandemic will see to better hygiene and more practices geared towards space and comfort.
Regardless of these factors, the real estate industry will keep increasing in value as the demand is shifting from one form of property to another and is not completely absent. In the end, taking calculated risks, readjusting to make the best of the trends and tenacity will keep you at the top of the market.