Nigeria’s high inflation may slow homes sales —Report

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High inflation rate in the country may slow down homes sales in the country to further compound the tales of woes housing investors and real estate business owners have been lamenting about in the past months, a report by Ventures Africa has stated.

It will be recalled that the National Bureau of Statistics (NBS) recently released its 2016 June Consumer Price Index (CPI), revealing that Nigeria’s inflation rate had risen to 16.5 per cent.

From all available data, this is the highest Nigeria’s inflation has ever been in over a decade, and is the fifth consecutive quarterly rise in the rate of inflation across the country.

But according to the report, which quoted the NBS as attributing the increase in inflation to increase in the prices of electricity, kerosene, fuel, transport and imported food items, identified the housing sector as one of the sectors of the nation’s economy that would be sore affected by this worrisome trend.

“The growing rate of inflation in Nigeria has dire consequences which will affect Nigerians negatively if the government fails to act soon,” the report said.

“Just as interest rates increase due to inflation, the cost of home loans will also go up and this will affect the real estate market, leading to a slowdown in sales. Prices in the housing market will crash but the majority will still not be able to take advantage of this because of the increased cost of living,” it further added.

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