The real estate sector in Nigeria is poised for substantial growth, with forecasts projecting it to reach a staggering $2.26 trillion by 2024.
Among the contributing factors, residential estates are expected to play a significant role, accounting for $1.93 trillion or 85.4 percent of the total growth.
Despite facing challenges such as a weakening currency, inadequate infrastructure, multiple taxation, and soaring construction costs, analysts remain optimistic about the sector’s trajectory.
Speaking at the Real Estate Outlook 2024 launch organized by the Nigerian-British Chamber of Commerce (NBCC) in collaboration with FIABCI, an International Real Estate Federation, Dr. Biodun Adedipe, Founder and Chief Consultant of B. Adedipe & Associates Limited, highlighted the hurdles while emphasizing the sector’s potential to grow at a compound annual growth rate (CAGR) of 7.52 percent to $3.02 trillion between 2024 and 2028.
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Adedipe emphasized the crucial role of housing development as a driver of investments and a significant source of job creation. He pointed out Nigeria’s staggering 22 million housing deficit, primarily concentrated in urban areas, accommodating about 51.7 percent of the population, with the country’s population estimated at 223.8 million, growing at 2.44 percent annually.
In outlining strategies for business growth in 2024, Adedipe stressed the importance of agility and digitalization, stating, “The future of operations management is both agile and digital.”
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President of NBCC, Mr. Ray Atelly, highlighted the significance of the Real Estate Outlook as an annual event aimed at providing a platform for stakeholders to exchange experiences and insights in advocacy, entrepreneurship, and professional career development driven by passion, audacity, and innovation.
During a panel session, industry leaders including Paul Onwuanibe, Group Chief Executive of Land Mark Africa Group; Yemi Idowu, Founder/Chief Executive of Aircom Nigeria Ltd; and Hakeem Ogunniran, Chairman of the Construction and Real Estate Group at NBCC, addressed regulatory challenges within the sector, emphasizing the need for professional regulation and oversight.