In line with the newly introduced directive by the Central Bank of Nigeria (CBN) to unify the exchange rates, the economy is expecting a devaluation. This move by the new administration, is among the positive steps being taken in the first 14 days in office by President Asiwaju Bola Ahmed Tinubu.
However, these are the possible effects of the devaluation of the Naira on the Real Estate Industry in Nigeria. Devaluation of the Naira can have both positive and negative effects on the real estate industry. It is important to note that the impacts can vary depending on several factors, including the overall economic conditions, market dynamics, and government policies. Here are some potential pros and cons of Naira devaluation on the Nigerian real estate industry: Pros: Foreign investment: Devaluation can make real estate assets more affordable for foreign investors, potentially attracting increased foreign investment in the sector. This influx of foreign capital can stimulate development, boost construction activities, and drive market growth. Export competitiveness: A devalued currency can make Nigerian goods and services, including real estate, more competitively priced in the global market. This can potentially increase demand for Nigerian real estate from international buyers or investors.
