Despite challenges, Nigeria's real estate is projected to reach $2.26 trillion by 2024

• Published On: 15 February 2024 at 16:24

The Nigerian real estate industry is expected to reach $2.26 trillion by 2024, with residential estates contributing $1.93 trillion, accounting for 85.4 percent of the total.

The analysts who provided this projection acknowledged that the anticipated growth would occur amidst challenges such as a depreciating currency, inadequate infrastructure, numerous taxations, and elevated construction costs that currently afflict the sector.

During 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, discussed the challenges faced by the sector. He also highlighted that the real estate industry is expected to grow at a compound annual growth rate (CAGR) of 7.52 percent, reaching $3.02 trillion between 2024 and 2028.

Dr. Adedipe emphasized that housing development plays a crucial role in driving investments that stimulate economic growth and serve as a significant source of job creation. He pointed out that Nigeria's housing deficit of 22 million units, primarily in urban areas, accommodates approximately 51.7 percent of the population. Furthermore, he noted that Nigeria's population, estimated at 223.8 million, is growing at an annual rate of 2.44 percent.

Providing specific recommendations for business growth in 2024, he stated, "To truly enhance business agility, processes must be continuously reviewed and adapted to environmental peculiarities. As many processes as possible should be automated, and the utilization of digital technology should be maximized."

"The future of operations management embraces agility and digital transformation. Business unit teams no longer operate in isolation; instead, they collaborate, learn continuously, and demonstrate nimbleness by drawing lessons from mistakes. They carry these learnings forward into subsequent tasks, fostering ongoing improvement."

In his opening remarks, NBCC President Mr. Ray Atelly highlighted that the Real Estate Outlook is an annual event organized by the chamber. It is designed to offer a platform for stakeholders in the sector to share their experiences in advocacy, entrepreneurship, and professional careers driven by passion, audacity, and innovation.

During a panel session, 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, expressed concerns about the mis-regulation of the real estate sector, which, despite its professional nature, has faced challenges in terms of regulatory oversight.

He expressed, "Government policies are crucial to stimulate private sector investment. While numerous opportunities exist, we cannot make progress independently and require supportive policies."