IMPACT OF INFLATION ON NIGERIAN REAL ESTATE INDUSTRY: A CASE STUDY OF ETI-OSA LOCAL GOVERNMENT AREA OF LAGOS STATE
Keywords:
Construction Costs, Housing Affordability, Inflation, Investment Decisions, Property Prices, Real Estate Market.Abstract
This study explores the relationship between inflation and Nigeria’s real estate market (REM),
analysing its effects on property prices, investment decisions, construction costs, and housing
affordability. Using survey data from 200 copies of questionnaire and regression analysis, the
research reveals a negative correlation between inflation and REM performance, highlighting
inflation’s adverse impact on market vitality. Conversely, a positive link is found between inflation
and investment decisions (IID), suggesting inflation drives increased investor interest in real estate.
The study also identifies a significant negative effect of inflation on housing affordability (IHA), as
rising costs erode individuals’ ability to afford homes. Additionally, inflation positively correlates
with construction costs (IIC), exacerbating material expenses and elevating housing prices. To
mitigate these challenges, the study recommends government intervention, including targeted
affordable housing programs with subsidies or incentives for developers. Rent control policies are
also proposed to stabilize housing costs, particularly in urban areas with rapid price increases. These
measures aim to enhance affordability and support sustainable growth in Nigeria’s real estate sector.
