The real estate sector in Nigeria is forecast to grow to $2.26 trillion in 2024, of which residential estate will contribute $1.93 trillion or 85.4 percent.
Analysts who made the forecast noted that the growth would be happening at the backdrop of challenges of weakening currency, poor infrastructure, multiple taxation, high construction costs, among others confronting the sector.
Speaking at the Real Estate Outlook 2024 launch organized by Nigerian-British Chamber of Commerce, NBCC, in partnership with FIABCI, an International Real Estate Federation, Founder and Chief Consultant, B. Adedipe & Associates Limited, Dr. Biodun Adedipe, who outlined the challenges also noted that the sector will grow at compound annual growth rate, CAGR, of 7.52 percent to $3.02 trillion between 2024 and 2028.
He said that housing development is a driver of investments that stimulate an economy and serves as a major source of job creation.
He pointed out that Nigeria’s 22 million units housing deficit, mostly in urban areas was home to about 51.7 percent of the population, adding the country’s population estimated at 223.8 million is growing at 2.44 percent annually.
Giving specifics for business growth in 2024, he said: “For your business to be truly agile, not only must processes be continually reviewed and updated to environmental peculiarities, as many of them as possible should be automated and the use of digital technology maximized.
“The future of operations management is both agile and digital. Agile as the business unit teams no longer work in silos but collaboratively, learning every step of the way and nimble enough to learn from mistakes, carry the learning forward into the next tasks and keep improving.”
Earlier in his welcome address, President of NBCC Mr. Ray Atelly, said that Real Estate Outlook was an annual event of the chamber, designed to provide a platform for stakeholders in the sector to share their experience in the areas of advocacy, entrepreneurship and professional career fueled by passion, audacity, and innovation.
In a panel session, Group Chief Executive, Land Mark Africa Group, Paul Onwuanibe; Founder/Chief Executive of Aircom Nigeria Ltd, Yemi Idowu; and Chairman, Construction and Real Estate Group, NBCC, Hakeem Ogunniran; said that the sector which is supposed to be a professional sector has been mis-regulated.
He said: “We need policy from government to drive private sector investment, there are lots of opportunities but we cannot get up on our own.”
Source: Vanguard
