In the first three quarters of 2022, economic activity in the construction and real estate industries contributed N20 trillion to the Gross Domestic Product of the country, according to the National Bureau of Statistics’ report on GDP.
According to the research, real estate only contributed N7 trillion to the GDP while construction services generated N12.9 trillion. Further research showed that construction increased in nominal terms (year-over-year) by 18.92% in the third quarter of 2022, contributing 9.5 percent of nominal GDP, up from 7.95 percent in the second quarter and higher than the 9.26 percent it contributed a year earlier.
However, the sector experienced a decline of 28.75% points compared to the rate of 47.67% seen in the same quarter of 2021.
The national statistics authority reports that the nominal growth rate for real estate services was 9.13%, which is 0.50 percentage points higher than the growth rate reported for the same quarter in 2021 and 3.68 percentage points lower than the Quarter before.
The sector’s growth rate was 16.38% quarter over quarter. In comparison to the 5.27 percent recorded in the third quarter of 2021 and higher than the 4.95 percent accounted for in the second quarter of 2022, the contribution to nominal GDP in Q3, 2022, was 4.96 percent.
By summing up gross outputs such a total of fees, the value of work completed, commissions due for services supplied, and other incomes, the NBS determines the sector’s contribution.
It also takes into account intermediary consumptions, such as the cost breakdown, which includes transportation costs, administrative costs, minor maintenance and repairs, etc.
Aliyu Wamakko, the chairman of the Nigerian Real Estate Developers Association, responded by saying that the amount provided had demonstrated the potential of the private sector.
When you talk about real estate, private investors are the driving force, he said. This means that in order for any economy to succeed, the private sector needs to be given a stage and an even playing field.
For instance, there is no need for an incubation phase for establishing jobs in the real estate industry; if construction on a home begins, at least 25 people will be hired. Therefore, additional possibilities for the private sector need to be provided if the government wants to promote the nation’s economy.