Effects of the devaluation of your country's currency in the cost of real estate Business

[Ralphjoe]

The devaluation of a country's local currency has a devastating effect on the cost of real estate Business in the country. Taking Nigeria as a case study, the devaluation of the naira has some cost implications in the value chain of real estate business.
Most building contractors imports their building materials and tools from outside the country. When using the naira to buy this products abroad, it tends to shot up the price of the products as naira has become devalued which has a chain reaction to the entire cost of building a house hence resulting in expensive houses being built.
What's your thoughts on this guys and how can we remedy this? Is this also occuring in your country? How bad is it?

 

[Abibatabosede]

Devaluation of currency in a country may have effect on the realtor and also occupants of property.Those who lease property may require of more money on the property or the property owner might loose customer if he increases payment

 

[Niftyyem]

This is not just peculiar to the construction industry, even that industry fairs better. Many aspects of the economy is affected by the devaluation of the fiat especially those that depend so much on importation.

 

[Josemendez]

Quite true. The effect of devaluation of one's Currency has effect on the Businesses in the country. At such , people after buying at huge cost in foreign trade will increase the price in order to balance the scale . This is the case observed in real Estate.

 

[Lekside127]

In my country, the devaluation of the currency don't affect the real estate business negatively, rather it is on a positive side. This is because buying a house, land or even renting a house is a great gain to real estate agent because the money used to do it very high and agents will definitely have some good amount of gain to their self.

 

[Damismiling]

Where devaluation of currency have impact on real estate business is in the form of following, on getting product and materials it is expensive and the cost of procurement would be higher but this will bounce back on the tenants and the clients

 

[Rimsha kanwal]

The devaluation of a country's local currency has a devastating effect on the cost of real estate Business in the country. Taking Nigeria as a case study, the devaluation of the naira has some cost implications in the value chain of real estate business.
Most building contractors imports their building materials and tools from outside the country. When using the naira to buy this products abroad, it tends to shot up the price of the products as naira has become devalued which has a chain reaction to the entire cost of building a house hence resulting in expensive houses being built.
What's your thoughts on this guys and how can we remedy this? Is this also occuring in your country? How bad is it?

Real estate provides investors essentially two benefits: return on investment (ROI) due to property value appreciation upon sale; and rents received during ownership. When the dollar is devalued the ROI, in real terms (actual return), on property values is substantially impaired.

 

[Kamon c4]

Devaluation of currency is an intentional act carries out by the government in order to reduce its deficit. This is done in order to reduce its import and increase export. Currency devaluations has an effect on real estate. One of its disadvantages, is cost of imported construction materials will be high. For countries where construction materials aren’t imported, this will have positive effect cause the selling prices will be increas

 

[Mawome]

Devaluation is understatement, my brother our currency has no value at all. Nothing is moving well I don't think there is any currency in the world that Nigerian currency is greater than. Our leaders almost swindled Nigerian i tell you, but we are cool with all of that.

 

[Sariana23]

This situation in the real estate business that occurs in Nigeria, is the same situation in my country. The difference is that construction companies do not import construction materials, even so the prices are exorbitant, since all materials are sold in dollars, therefore the local currency has lost its value.

 

[Henrywrites]

The devaluation of a country's local currency has a devastating effect on the cost of real estate Business in the country. Taking Nigeria as a case study, the devaluation of the naira has some cost implications in the value chain of real estate business.
Most building contractors imports their building materials and tools from outside the country. When using the naira to buy this products abroad, it tends to shot up the price of the products as naira has become devalued which has a chain reaction to the entire cost of building a house hence resulting in expensive houses being built.
What's your thoughts on this guys and how can we remedy this? Is this also occuring in your country? How bad is it?

Devaluation of the currency in a country that is producing next to nothing can be dangerous, and tough on the masses. Prices of houses will go up since the cost of building won't be cheaper after importing most of the things that they use in building those houses. So, it's a challenging situation that we have in Nigeria.

 

[kayode10]

Devaluation makes the price of material needed for real estate go to the roof top. This can be a great challenge to the real estate developers. The reason is that properties will be developed at high cost. This cost will shift to the rent cost of the property. When the price of rented property is too cost, the property will remain vacate for a long period and tie money down.

 

[Kehinde]

First, devaluation makes the country's exports relatively less expensive for foreigners. Second, the devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports.

 

[Alexandoy]

We are fortunate that our currency is stable with the value against the USD stading at 48 pesos for 1 USD for a long time now. Sometime in the 1980s we suffered a great devaluation that the peso was getting scarce. Maybe that is the natural reaction of the public to keep their money because the value is very low. The prices of real property went down because there were no buyers. I think that also happened in the US during the Obama presidency that real estate prices have crashed.

 

[Nurudeen]

The devaluation of a country currency can cause a devastating effect on the economy on general not the real estate business alone. But for real estate business,it can cause an inflation in the price of the properties the Investors are buying which can amount to paying in high amount to what they have been paying before. So it's bad omen to the economy

 

[Briangsam]

Devaluation of the currency is not a goof thing at all. It is not a welcomed development. Many goods, commodities and services that require foreign exchange rates become expensive and the citizens will be left to bear the brunt.

 

[Trojan8]

For a country that depends on a lot of imported building materials. Devaluation would be a major problem because it would lead to the increase of prices. And with increased price this would lead to the overall cost of getting a property increasing also. So devaluation would greatly affect the real estate sector as it would lead to increase in the general price of properties.

 

[Setfragil]

Currency devaluation affects all areas of life not only in real estate. When currency is devalued it will be difficult to afford the price of lands and properties. It is advisable to consider the commodities that are very essentials to people before devaluing currency.

 

[FreshKaz11]

The devaluation of a country's local currency has a devastating effect on the cost of real estate Business in the country. Taking Nigeria as a case study, the devaluation of the naira has some cost implications in the value chain of real estate business.
Most building contractors imports their building materials and tools from outside the country. When using the naira to buy this products abroad, it tends to shot up the price of the products as naira has become devalued which has a chain reaction to the entire cost of building a house hence resulting in expensive houses being built.
What's your thoughts on this guys and how can we remedy this? Is this also occuring in your country? How bad is it?

I've also been thinking of this, because the way everything get cost in my country is something else,and have been wondering what could be the reason but now u see the reason behind this now.

 

[Ralphjoe]

I've also been thinking of this, because the way everything get cost in my country is something else,and have been wondering what could be the reason but now u see the reason behind this now.

The devaluation of the Naira to the Dollar has had a devastating effect on the real estate industry in Nigeria. The price of houses in Abuja, where I stay is on the rise and there are not any solution for this from the government.

Post automatically merged: Jun 9, 2021

Where devaluation of currency have impact on real estate business is in the form of following, on getting product and materials it is expensive and the cost of procurement would be higher but this will bounce back on the tenants and the clients

This is my greatest grouse with the government whenever they make any policy that will not favour people. They recently devalued the currency and this is going to negatively affect the cost of items in the country.