For those operating in the residential property market 2011 was slower than molasses. For those operating in the commercial property market things were moving along at a decent pace. Office spaces, retail stores and hotels were relatively strong.
The commercial market has received countless malls including one that recently opened in West Africa. The Ikeja City Mall has a Shoprite store. This outlet claims the title of largest retail venue in the country.
The global residential property market had a mixed bag of sales. The more pricey homes were moving slowly. Low and medium income properties saw a considerable amount of activity. The contrast is analyzed by experts and they concluded the discrepancy can be attributed to demand and price mechanisms.
Real estate was challenged as was the rest of the economy. The credit crisis had a major effect on investments. When confidence is low, the investors may tend to sit back and wait for a change.
The property market is first to feel the effects of insecurity and the last to recover from it. Importing on a short term basis carries a lower risk. Real estate requires time to flourish. It cannot expand without people having income from a job. They are in short supply in many parts of the world. The simple truth is that no one can invest in anything, including residential property and especially commercial property without the funds.
In Nigeria, recession had an effect on most all locations. The engine of economic growth was chugging slowly down the track. A lack of jobs and economic growth does not have a positive effect on real estate sales.