Hearing terms like “economic downturn,” “inflation,” and “currency depreciation” can send a chill down the spine of even the most experienced investor. And if you’re just starting out or considering a big move like real estate investment, it’s only natural to ask: Is real estate still a safe bet when the economy seems anything but stable?
Well, let’s break it down together.
1. Real Estate Has History on Its Side
Real estate has weathered storms before and not just survived, but often thrived after the chaos. During periods of inflation, for example, property values and rents tend to rise. Why? Because land is a limited resource. People will always need places to live, work, shop, and create. That constant demand makes real estate a long-standing champion of wealth preservation.
2. Tangible Assets Offer Tangible Stability
In an unstable economy, people crave security. And what’s more secure than a physical property you can actually see, touch, and even live in? Stocks might plunge. Crypto might crash. But your 3-bedroom duplex in a growing Lagos suburb? Still there. Still appreciating in value. Still bringing in rental income.
3. Rental Income = Cash Flow (Even When Markets Wobble)
While your property appreciates over time, rental income keeps money flowing in. That’s especially valuable in economic downturns when other investment vehicles might not offer consistent returns. People always need housing, and rental demand tends to stay strong even when job markets are shaky.
4. Hedge Against Inflation
Inflation makes your money worth less, but guess what usually becomes worth more? Real estate. As prices go up, so do property values and rents. If you own property, you’re not keeping up you’re staying ahead. That’s what makes real estate a smart hedge against the unpredictability of inflation.
5. Not All Real Estate is Created Equal
Let’s be real: not every piece of land or building is a golden goose. Location, purpose, and timing still matter. That’s why working with experienced consultants and doing your due diligence is crucial. In uncertain times, the right real estate becomes more important than just any real estate.
So… Is Real Estate Safe in an Unstable Economy?
The short answer? Yes but smartly.
Real estate would continue to be a trusted, income-generating, value-holding asset. But like any investment, you need the right guidance, the right property, and a long-term vision.
And if you’re ready to explore the right opportunities even in this economy, we’re here to guide you every step of the way.
Babajide Okusaga & Co are Chartered Surveyors and Real Estate Consultants with expertise in Agency, Investment, Management, and Syndication (AIMS). We are known for being client-focused and results-driven, aiming to connect clients with their specific real estate needs such as Investments, Sales, Letting, Joint Ventures, and Partnerships.
We dedicate time and energy to ensure clients’ satisfaction by helping them find the best-suited real estate solutions. Whether it’s leasing office space, financing a first home, purchasing a new factory, or managing an investment portfolio, Babajide Okusaga & Co caters to the considerations of corporate entities, individuals, and High Net Worth Individuals (HNIs).
Contact 02013423872 for Enquiries.
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