Construction industry, Real Estate can salvage economy – Experts

With the state of the nation’s economy today, experts are of the opinion that the real estate industry and construction industry can drive growth in the economy through its links to other manufacturing sectors like the transport infrastructure.

According to The Guardian, a new report released by the European Commission suggested that every job created in construction results in two additional jobs elsewhere. “Construction is a bellwether of the economy, and, crucially for a bloc toiling to create jobs, generates local employment. It is the single largest economic activity and the biggest industrial employer.”

In Nigeria here, several experts have given their opinion on how the real estate industry and the construction industry can improve the economy.

President, Commonwealth Association of Surveying and Land Economy (CASLE) Olusegun Ajanlekoko told The Guardian that, “construction Industry has always been seen globally as the barometer of the economic well being of a Nation. The current situation of the country, therefore, cannot but be worrisome. The parlous situation is worsened by the recent hike in cost of cement. It is sad development as the resultant effect on the cost of construction is definitely going to be no less than 40 per cent as cement is a major component and cost sensitive element of the construction Industry.”

In addition, The Guardian noted that Ajanlekoko urged government to grow the industry by directing fund into it. “The sector must have a priority as far as sectoral allocation is concerned in the Budget. There is definitely a need for a supplementary budget now. In addition,they must adopt policies that will make the country Investor friendly so that necessary fund can flow into the country.Also of utmost importance is the need to compel the use of local raw materials in the industry to reduce the over dependence on imported raw materials.”

Also, The Guardian noted that a past president of Nigerian Institute of Estate Surveyors and Valuers (NIESV), Mr. Bode Adediji lamented that Nigeria and the government lack the strategy, the policy framework, the institutional infrastructure and perhaps even the political will to use the real estate sector to solve the recession problem.

“One of the worst affected sectors of the economy by this unprecedented recession unfortunately is the real estate sector in all its ramifications. The demand spectrum has plummeted beyond description and virtually all the segments of the construction industry is currently in comatose without any hope of recovery in the immediate or medium time frame.”

He added that Government, despite the scale of the real recession challenges can use the real estate sector to contribute to the revamping of the economy through imperatives such as full recognition of the nature and scale of the problem besetting the real estate sector; summoning and deploying the political will to holistically overhaul the entire sector and mobilisation of local and international human and financial resources to jump-start the entire sector.

Also, according to The Guardian, The Dean, Faculty of Environmental Sciences, University of Lagos, Prof. Timothy Nubi, said there is no other way out of the recent recession but to resort to construction and building industry.

“Look at any nation in the world that fight recession, it was the construction industry because it will activate other sectors, like the quarries, wood sellers, cement sellers, paint makers, even food vendors.

“Construction industry is the engine room of the economy because it will make even the quarries busy. We should put our money in the productive sector to create further wealth,” he said.

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