A Benin City-based real estate entrepreneur Goodluck Omogiade has explained why the real estate sector is currently experiencing a decline.

Omogiade, in an interview with journalists, stated that the current state of the economy is to blame for the decline.

He said, “The sector has seen a contraction in value and activity in recent years as the economy has deteriorated. The reasons behind this contraction are numerous, but they all boil down to the same fact that the country’s economy is not growing fast enough, nor are there any major investments being made by Nigerians who had once committed to purchasing property abroad.

“The current economic situation in Nigeria is not conducive to investing in real estate.”

Omogiade noted that with the high cost of living and unemployment rates on the rise, people are simply not able to afford properties.

He went on to say that the lack of government support for the sector is also contributing to the decline.

“The government needs to do more to encourage investment in real estate. “Without their support, the sector will continue to suffer,” he said.

According to him, most other African countries have made huge strides in the real estate sector, even though it is new terrain for them, saying they have updated their real estate industry in accordance with the economic opportunities of the 21st century.

However, Nigeria has failed to meet up with this trend and as a result, it has fallen way behind its competitors.

Omogiade further concluded that the decline in the real estate sector in Nigeria is due to the poor management of government policies. There is a need for government to re-examine its policies, failure of which will lead to further decline and eventually collapse of the real estate market in Nigeria.