Why property sales surge in Nigeria during Q4 — Real estate experts

In Nigeria, property sales experience a notable increase during the fourth quarter (Q4) of the year, as reported by local real estate experts. This surge is attributed to a combination of factors, including year-end savings, festive inflows from the diaspora, and sellers looking for liquidity. For some buyers, completing a property purchase before the new year is a financial goal they aim to achieve. Individuals living abroad contribute to the demand through visits and remittances.

Real estate professionals operating in Lagos, Ogun, Rivers, and Abuja, including Temidayo Ademosu, Ekemini Otong, Mbetobong Udoh, and Chinedu Ugwu, have highlighted these factors behind the heightened property activity in Q4. Ademosu explains that buyers often aim to "round up the year on the high" by finalizing their planned property purchases. Otong mentions that some buyers spend months researching properties before deciding as the year nears its end.

Udoh notes that accumulated savings, additional income, or festive season cash from relatives abroad can enable buyers to proceed with their property purchase plans. As the year draws to a close, sellers and developers become more active, with some accelerating construction projects or seeking to complete them before the year ends. This increased seller activity can lead to heightened competition for desirable properties, although sellers may also become more willing to negotiate due to their need for liquidity.

The influx of diaspora money during the festive season adds another layer to the Q4 property activity. Nigerians living abroad may return home to purchase property or send funds to relatives in Nigeria for this purpose. The supply side also becomes more active, with some construction projects being accelerated to meet the year-end deadline.

While the Q4 property activity can lead to stronger buyer capacity and greater seller urgency, creating more opportunities for transactions, the final price of a property is influenced by various factors. Location, demand, property type, the seller's financial position, and the transaction's urgency all play a role in determining the final price.

Stronger demand can lead to an upward pressure on prices, but this is not a uniform trend across the market. Completed or ready-to-occupy apartments tend to attract more interest, as some buyers prefer to acquire a property they can move into toward the end of the year rather than start a construction project. However, sellers need to be cautious not to set excessively high asking prices, as this may leave the property unsold if buyers are not willing to pay the inflated price.