The Managing Director and Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), Arc. Ahmed Musa Dangiwa has said Nigeria needs a change in the country’s real estate landscape .
He stated this during a presentation on Housing Finance in a Post-Covid 19 Era: Lessons and Opportunities for Emerging Markets at the recently held 15th Abuja Housing Show .According to him after a rebound in Q4 2020, the economists are predicting a positive economic outlook for 2022.
Apart from lockdown and movement restrictions, governments around the world have implemented fiscal and monetary policies to address the economic consequences of the pandemic, according to Dangiwa.
The Nigerian government’s fiscal measures, according to the FMBN Chief Executive, included but were not limited to: Revision of budgetary targets, including a N550 billion COVID-19 intervention fund.
Subnational entities will receive N150 billion in support.
Conditional Through the social register, money was transferred to 3.6 million households.
Wage support for businesses
Programmes of Public Works
In the area of monetary policy, forbearance on intervention loans by lowering interest rates from 9% to 5% and extending the 12-month moratorium.
Monetary policy rates (MPR) are being cut and banks’ liquidity rates are being raised.
A N3.6 billion injection into the banking sector has been proposed to support health, manufacturing, and real estate.
The establishment of a targeted credit facility worth N50 billion.
Depreciation of the currency.
Others, according to Dangiwa, included most national governments’ quick interventions in the rental and mortgage composites of the housing sector.
The FMBN MD went on to list the most significant effects of the response and reactions on house prices, which included house price appreciation in most developed countries such as the United States, Canada, Australia, New Zealand, and the United Kingdom.
Overregulation has hampered housing investments.
On the subject of market impact, the mortgage boss reveal that global market volatility prompted real estate investment as a hedging strategy. Residential property values and rents in Nigeria have risen as a result of naira depreciation, inflation, and rising demand, particularly in the medium to lower-cost market segments. He went on to say that the property market had risen by 50-100 percent in strategic urban locations, among other things.