The interest rate benchmark which was previously at 11.5% was increased to 18.5% by the Central Bank's Monetary Policy Committee. Real estate experts are complaining about the hike as it would affect the housing projects and could lead to some projects getting abandoned.
It will also affect the overall housing system in Nigeria.
One of the real estate experts Toye Eniola. He is the Executive Secretary of the Association of Housing Corporation of Nigeria. He said that the hike would make seeking loans unattractive to developers and investors as it would repel them due to the interest attached to it.
As we all know that housing business isn't one you can make a profit from in one day, the hike is a threat to the profit of developers.
Also, the cost of housing materials would skyrocket causing further damage to ongoing projects and the cost of housing in the country.
This issue has grabbed the attention of stakeholders in the real estate sector as they all express their concern over the consequences of CBN's decision.
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