The Impact of COVID-19 on Real Estate Transaction in Lagos, Nigeria

Abstract

Global lockdown of all economic activities due to the COVID-19 pandemic have a consequential impact on all aspects of the economy including real estate. This assertion necessitates the need to evaluate the impact of the pandemic on real estate transactions in Nigeria commercial capital. This study assessed real estate transactions in Lagos during COVID-19 pandemic. The specific objectives of the study were: to examine real estate supply, demand and real estate transaction sale and rental value in the study area. Also, the study examined rate of real estate transactions and problems of real estate transactions during the COVID-19 pandemic. The study populations for the study are the Estate Surveying and Valuation firms in the study area. Data were gathered through questionnaires administered to the respondents. Data gathered were analyzed using descriptive statistics such as: frequency distribution table, relative importance index and ranking. Findings from the study revealed that warehouses (industrial properties) are the class of property that is most readily available for occupation and demand with indexes (RII) of 4.184 and 4.382 respectively. Warehouses have the highest sale and rental value during this period with a RII of 4.204 and 4.211 respectively. Majority of the respondents (77.632%) revealed that real estate transactions were relatively static in comparison to the period before the pandemic. The most predominant real estate transaction problem in the study area is bank transaction related problem with a RII of 4.211. Recommendations were made on how to alleviate the identified problems in time of similar pandemic in the future.