The State of Nigeria Real Estate and Its Projection for 2024’s Second Half— Mubarak Aremu
According to the National Bureau of Statistics, in Q1 of 2024, the construction and real estate industries contributed 11.2 trillion naira to Nigeria’s economy, with the real estate sector contributing 5.2% of the country’s gross domestic profit (GDP).
Without mincing words, this signals the growth of these industries, and its progressive impact on the nation’s revenue generation.
Beyond the results, and obvious growth, however, it is important to examine the current state of these developments, for the improvement as the second half of the year set sail.
One of the most cogent factors of the industry’s growth is tied to face and real value of attracting investors from every corner of the world.
Today, in the USA, the second country with the largest and most profitable real estate sector, 36% of a Gallup personal finance and economy survey respondents chose real estate as their best option for long term investment. The next largest percentage was as low as 22% of the respondents choosing stocks/mutual funds.
On infrastructure, it is reported by Research and Markets that the Nigerian government allocated 548.6 billion naira for road construction and 99 billion naira towards the development of 20,000 affordable housing in 2024 respectively.
Directly, the execution of these infrastructure projects includes developments like the Lagos-Calabar Coastal Highway, which boosts the country’s trade and commerce.
This influences the level of investment attraction Nigeria commands, and also the real estate industry. In essence, more investors; continued growth.
Policies, acts and regulations like the Real Estate Investment Trusts (REITs), land use act and national housing policy are pivotal to the developments in Nigeria real estate. These government imposed rules to urban planning and housing across the country so far have seen marginal developments and real estate projects, which in turn protects the investors and consolidate their portfolios.
The availability of reinforced and guiding policies in this industry commands more funding into Nigeria real estate as investors rely on their trust in the government and real estate players to be judicious in their projects.
On population growth, the demand for shelter and housing units rises as days go by. July, 2024, at the UK Build and Construction West Africa Trade Mission in Abuja, the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa stated that to resolve the country’s housing deficit, a total of 550,000 housing units must be built every year, over the next decade.
Evidently, this need is a function of the country’s population size and its growing nature that begs for more shelter provision across the country.
Through this second half of 2024, just like the first half, hence, leading real estate companies like Gidi Real Estate Investment Limited are gearing towards shouldering this social responsibility of developing more affordable housing options to serve the demanding Nigeria populace.
Lastly, but not exhaustively, the Nigerians in diaspora are noteworthy for their contribution to choosing to invest and purchase houses in the Nigerian localities.
These patriotic acts significantly boost the profitability of Nigeria real estate, and today, the trend continues to look in the industry’s favor.
In conclusion, it can be asserted that by the second half of 2024, the state of Nigeria real estate will progressively be profitable, and should be titling more to sustainable developments that yield more growth for the overall country’s progress.
Author: Mubarak Aremu
Mubarak Aremu is a digital Marketer at Gidi Real Estate Investment Limited.
