Why Real Estate is Considered The Best Investment Option During Inflation

Inflation is currently sweeping Nigeria, wreaking havoc on all economic sectors of the country, despite this, there will never be a better time than the present to make an investment in real estate.

Adedokun Boluwatife Adedokun Boluwatife
Jul 8, 2022 - 23:23
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Why Real Estate is Considered The Best Investment Option During Inflation
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According to data on the Consumer Price Index that was just recently released by the National Bureau of Statistics (NBS), Nigeria's inflation jumped to its highest level in 11 months, going from 16.82 percent in April 2022 to 17.71 percent. 

It won't come as a surprise to learn that inflation is currently sweeping Nigeria at the moment, wreaking havoc on all economic sectors of the country, including the real estate market in Nigeria. Inflation is currently at an all-time high.

Despite this, there will never be a better time than the present to make an investment in real estate. Despite the fact that inflation is currently wreaking havoc on the economy, money that is invested in the industry will eventually appreciate rather than depreciate.

As a direct result of this rapid pace of appreciation of real estate during this period, inflation can really be seen as a gift in disguise for real estate investors, guaranteeing a lucrative return on investment in the shortest amount of time possible.

In addition, for individuals who have access to earnings in a foreign currency, real estate is a long-term bet that is worthy of consideration. This is due to the fact that the volatility of the foreign exchange regime enables an investor to buy significant assets below market value with smaller dollar sums. This is especially true in the middle market sector, which has massive unmet demand.

Investing in real estate has consistently been shown to be highly protective against high inflation and resistant to value deterioration. On a daily basis, ordinary Nigerians are still experiencing the fallout from the devaluation of the naira.

Nevertheless, the cost of goods and services has skyrocketed in many households and businesses, which has put a strain on the amount of discretionary income that many Nigerians can set aside for savings or investments.

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