In an anticipation of a positive outlook for the property market in 2018, Real Estate developers have resumed marketing activities for their projects as the economy looks to maintain its growth momentum after exiting a 15month period of economic recession.
The renewed effort is seen in the increasing number of traditional and digital marketing activities in cities such as Lagos, where developers have embarked on several initiatives to woo prospects to either buy or rent their projects.
Nigeria’s Real Estate market was one of the worst hit sectors at the height of the country’s first economic recession in 25 years which lasted from Q1 2016 to Q2 2017. The property market within the period was defined by low demand, widening vacancy rates, increasing case of rent defaults and slowdown in construction activities across various sites.
With economic uncertainties easing off due to the Federal Government’s ability to build macroeconomic resilience through revising the funding mix, enhancing foreign exchange reserves and focusing on import substation strategies, trends show Developers are exploring a handful of options to entice clients to either rent, buy or subscribe to their projects.
“The perception in the marketplace is that as the macroeconomic indices improves, prospective homebuyers and tenants will have the wherewithal to approach the market to purchase, rent or at least subscribe to any of the off plan projects currently selling in the market,” a Real Estate analyst who preferred anonymity said.
Some of the activities currently driven by developers and Real Estate marketing firms can be seen in the increasing number of advertisement placed in National dailies, Lifestyle magazine and online media platforms. Others include; leveraging on Sales consultants to widen market reach and brand activations in shopping malls.
A recent tour across most highbrow neighbourhoods in Lagos revealed that the ‘To Let’ or ‘To Lease’ signage are also back at the entrance of some vacant residential buildings.
A recent report by New Telegraph disclosed that as part of effort by Real Estate developers to deepen their market share, they have initiated marketing activities targeting Nigerians in diaspora, especially those living in the United Kingdom and United States of America.
The report further stated that the Real Estate developers are not alone in the rush as the Federal Government is also trying to lure Diasporas to invest in Nigeria’s property market, through its Nigerians in Diaspora Housing Programme (NIDHOP).
In a related development Alpha Mead Development Company (AMDC), Strategic Business Unit (SBU) of the Alpha Mead Group, recently signed a Memorandum of Understanding (MoU) with Meristem Trustees to render property development and acquisition services for the benefits of Nigerians in diaspora.
“This new partnership will open Nigerians in the diaspora to a new opportunity to own choice Real Estate assets in any lifestyle residential estate developed by AMDC,” Engr. Femi Akintunde, Group Managing Director for the Alpha Mead Group said at a brief ceremony held to sign the MoU.
Market watchers are optimistic that as the economy consolidates and business environment improves, these activities will slowly but steadily pay off.