Despite December being a slower month for real estate activity, last year’s festive season was different. It rekindled opportunities for buyers and sellers and showcased increased demand for short-let rentals.
The period between December and early January is often referred to as Detty December, a time when Nigerians, diaspora communities and tourists flock to Nigerian hinterland and cities such as Lagos, Port Harcourt, Enugu, Owerri, Umuahia, Abakaliki, Asaba, and Benin for a variety of celebrations and social events.
The Guardian learnt the festive season had a positive impact on the economy and extended beyond real estate, from the hospitality sector to retail, transportation, and entertainment.
It was also gathered that many diaspora tourists and holidaymakers had an eye on real estate investment. While some may have invested millions of naira in property; others came to view their homes and know the stage of development.
There were indications that some Nigerians returning home also used the period to complete their country homes, buy homes, invest in rental properties, purchase land for future development or rehabilitate family houses.
According to the Nigeria Housing Market (NHM) report, “this influx of visitors puts a spotlight on the state of urban infrastructure, from roads to transportation systems. Well-located properties in these cities often experience a temporary surge in value due to their desirability for hosting events, accommodation, and retail activities.”
One of the most noticeable trends is the spike in demand for short-term rental properties. Nigerians in the diaspora and tourists, often prefer the comfort and privacy of serviced apartments or Airbnb listings over traditional hotels.
This surge creates a lucrative market for property owners who can cater to this need by offering well-furnished, centrally located properties.
It also drives increased activity in commercial real estate, as shopping malls, event centres, and restaurants see a boom as they cater to heightened consumer and entertainment demands.
Research by advisory firm MO Africa Company Limited revealed that between November 19 and December 26, Lagos’ hospitality sector experienced a surge in bookings, with over 15,000 hotel reservations contributing to a staggering N54 billion in December through domestic and international tourists.
The report also emphasised the role of Lagos’ festive attractions in driving tourism, as the city welcomed an estimated 1.2 million visitors during the period, 60 per cent of whom were domestic tourists. The popularity of short-let apartments further complemented the hospitality sector, generating an additional N21 billion from nearly 6,000 bookings.
The Chief Executive Officer of MO Africa, Kayode Omosebi, attributed the boom to the influx of travellers, including nearly 90 per cent of inbound passengers at Murtala Muhammed International Airport (MMIA) who were Nigerians living abroad returning for leisure and tourism.
Omosebi noted that the evolving nature of Lagos’ hospitality industry was due to increased reliance on cryptocurrency for payments and a growing preference for agent-assisted bookings. He projected that ‘Detty December’ could bring up to $2 billion in foreign exchange by 2026, provided infrastructural and security challenges are addressed.
The former Minister of the Federal Ministry of Works and Housing, Babatunde Fashola, confirmed the development and said diaspora remittances from the just concluded seasonal ‘’Detty December” alone were equivalent to four per cent of Nigeria’s gross domestic product (GDP).
He urged Nigerians to tap into these developmental opportunities to gain scarce dollar liquidity and prepare earnestly for the forthcoming one later this year, a failure which could drive potential tourists to other nations.
The former Lagos governor stated that the last Detty December had opened a positive image for Nigeria. “All of the young men and women who came from other parts of the world are reliving their experiences on social media, so there’s interest in a place called Lagos, Nigeria. And we can expand it. And it’s for us to be deliberate, intentional and have a mandate around tourism,” Fashola said.
He said while Detty December has opened the doors and brought about positive changes, Nigerians are not seizing the opportunity enough and questioned why the event should end in Lagos.
“How many of us are ready to leave our homes, furnish and rent them out during the period, because the demand will come and if we don’t respond, it’ll go somewhere else,” Fashola said.
An estate surveyor, valuer and Managing Partner, Ubosi Eleh and Company, Chudi Ubosi, said the impact on real estate is real as the season had a strong letting market, especially for short-let apartments. “The short let market is hot and though data and much-needed information are scarce in this sector, available information indicated that virtually every short let in the market was taken up. These prices range from N50,000 per night to N500,000 per night.
“The hotel rooms were full, and many had to turn down guests. This is because many people leave home and spend the holidays in these settings away from their regular homes.
“The insecurity in parts of the country made it difficult for a lot to travel to the hinterlands for the season. So many people remained in Lagos and other cities and spent the period in short lets and hotels. Sales and buyers were not visibly impacted.
“It also marks a period where many in the diaspora come home for the holidays. The diaspora impacts the market through short-lets and hotel stays, the ‘Detty December’ culture is fast gaining ground and becoming a time for social activities. This means that event centres, lounges, and night clubs that depend heavily on real estate are impacted positively.”
For the Chairman, Lagos branch, Nigerian Institution of Estate Surveyors and Valuers, Mr Gbenga Ismail, the period did not impact capital value, adding that the short-let rentals enjoyed a bonanza.
He said that proprietors enjoyed almost 90 per cent occupancy during the period. “The diaspora sector has a heavy influence on the market at the moment, especially outside Lagos. In each market outside Lagos, the diaspora participation is 70 per cent and the main factor was capital increase in those markets,” he added.
NHM urged property investors and managers to consider positioning their assets for short-term rental markets during peak seasons with amenities like 24/7 power supply, and high-speed internet, adding that proximity to key urban centres can significantly increase demand and revenue.
Urban developers and policymakers should leverage this seasonal focus to push for infrastructure improvements. Better roads, security, and utilities cannot only enhance the festive experience but also have long-term benefits for property value.
It further advised entrepreneurs and investors to consider seasonal promotions or expansions during December to maximise profitability, as flexible leasing options and well-maintained spaces could attract businesses looking to capitalise on the festive crowd.
The platform further called for collaboration between the real estate sector and other industries to amplify benefits, adding that partnerships between property owners and event planners can create win-win scenarios that optimise venue use and generate additional income.
Source:
https://guardian.ng/property/real-estate/how-detty-december-reshaped-real-estate-sector/