A platform that provides reliable data to companies interacting with the African real estate and construction industries, Estate Intel, has disclosed that Nigeria lagged behind Botswana and Morocco regarding foreign direct investment in the real estate sector.
Estate Intel revealed this in its recent report, blaming the cause on soaring inflation, weakened Naira, and high cost of production, according to a report by Estate Intel.
It pointed out that investors are jittery in Nigeria due to inflation, rising debt levels and potential default rates, among other things.
The report showed that Nigeria’s Naira has recorded the highest rate of depreciation in 2023, with an 83 per cent decline on the official rate.
“Interestingly, Nigeria also ranked as the third last market due to heightened currency changes (83.66 per cent YTD), high inflation rate (27.33 per cent), and high construction costs estimated at USD1,700 per sqm,” it noted.
“Notably, Botswana and Morocco ranked at the top of the real estate market attractiveness ranking. Relative currency stability, low inflation rates, and lower construction costs have underpinned this,” it stated.
The recent National Bureau of Statistics data showed that Nigeria’s headline inflation increased to 28.92 per cent in December.
Also, on Friday, the country’s currency quoted N902.45 per United States dollar from N460 per dollar in May 2023.
