Top Locations Where Real Estate Prices Are Dropping in Nigeria in 2024

In 2024, while the real estate market in cities like Abuja, Lagos, and Port Harcourt continues to soar, certain areas in other parts of Nigeria are witnessing a decline in property prices. This decrease is driven by various factors including economic challenges, oversupply, and reduced demand. Here’s a look at key locations where real estate prices are falling and what this means for potential buyers and investors.

1. Adamawa State: Navigating Economic and Security Concerns

Adamawa State, particularly in the capital city Yola, has seen a significant drop in real estate prices this year. The region has been affected by ongoing security issues, which have dampened economic activities. Many investors are hesitant, and locals are opting for more secure regions, leading to an excess of available properties. This shift has caused a noticeable decrease in demand, thereby driving property prices down. Despite this, for savvy investors who see long-term potential, this situation presents an opportunity to acquire properties at lower costs.

2. Cross River State: Calabar’s Property Market Slowdown

Cross River State’s once-bustling real estate market, particularly in Calabar, is experiencing a slump. Known for its hospitality and tourism sector, Calabar’s economy has been hit by the reduction in tourist activities and lower government spending. Luxury and mid-range residential properties in areas such as Marian Road and Federal Housing have seen price reductions as sellers seek to attract the limited number of active buyers in the market.

3. Ondo State: A Market Saturated in Akure

The capital city of Ondo State, Akure, has been facing a property price downturn in 2024. Several new housing estates and land developments have resulted in an oversupply of properties. With fewer buyers and renters in the market, real estate prices are dropping, particularly in suburban areas like Oba-Ile and Ijapo Estate. For buyers looking to invest, this situation could be ideal, especially if they aim for properties with potential for appreciation once market conditions stabilize.

4. Nasarawa State: Lafia’s Diminished Demand

In Nasarawa State, the proximity to the Federal Capital Territory (FCT) once made it an attractive option for people looking to live near Abuja at lower costs. However, in 2024, places like Lafia are experiencing a decline in property prices due to an oversupply of housing developments. The slowed population migration to these areas, along with economic uncertainties, has led to decreased demand. Property owners in this region are now reducing prices to entice buyers, creating a more affordable market.

5. Yobe State: Market Fluctuations in Damaturu

Damaturu, the capital of Yobe State, has also seen a drop in real estate prices this year. The region has been affected by security challenges, which have made potential investors wary. Additionally, the state’s economy, which is not as diverse as those of other regions, has struggled to maintain a strong property market. As a result, residential and commercial properties are being offered at lower prices, offering opportunities for buyers willing to invest in the state’s future growth.

6. Ekiti State: Declining Prices in Ado-Ekiti

Ekiti State’s capital, Ado-Ekiti, has been dealing with a real estate price slump due to a stagnating economy and limited industrial activities. Properties, especially those in new housing estates, are now being listed at reduced rates. This decrease in prices is largely due to the state’s reliance on the public sector and agriculture, which have been unable to drive sufficient demand for real estate in recent times.

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Why Are These Prices Dropping?

• Economic Shifts: Many of these states have economies that rely heavily on specific sectors like agriculture, tourism, or public sector employment. Economic fluctuations and reduced government spending have led to a decrease in purchasing power among residents.
• Security Concerns: In states like Adamawa and Yobe, security issues have led to population displacement and a reluctance among potential buyers to invest in the property market.
• Market Oversupply: Areas in Ondo and Nasarawa have seen an influx of new housing developments, resulting in an oversupplied market with insufficient demand to match, which naturally drives prices down.
• Urban Migration: A slow rate of urban migration to these areas has contributed to the low demand for properties, contrasting sharply with the booming markets in cities like Abuja and Lagos.

Opportunities Amidst the Price Drop

While the dropping prices might indicate a struggling market, they also present opportunities for investors looking to purchase properties at a lower cost. As market conditions change, these locations could see a resurgence in demand, leading to potential capital gains for those who invest now.

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In 2024, states like Adamawa, Cross River, Ondo, Nasarawa, and Yobe present unique opportunities within the Nigerian real estate market. While challenges such as economic downturns and security concerns have caused prices to drop, for the right investor, this period could offer a chance to acquire valuable properties at discounted prices. Careful consideration and strategic investment could turn these areas into future real estate hotspots.