As professionals and stakeholders in the Nigerian Housing Sector has always clamoured , there is no platform as strong and promising for the transformation of the Nigerian economy as the real estate/ housing development sector. In this article we unmask the future of real estate development in Nigeria.
The potentials of real estate are so huge, one only needs to look at the huge housing deficit and the enormous funding requirement it demands. Though the present indices are negative but the opportunities thrown for the growth and transformation of our economy are enormous
With a deficit of about 17 million or more and needed investments of well over N70 trillion, the housing sector represents a huge investment potential for local and international investments.
It does not require knowledge of rocket science to recognize that indeed real estate can help positively transform the Nigerian economy if properly harnessed
The impact of a robust real estate sector is multi-dimensional and apart from the overall potentials, the sector can also be a potent tool for:
- Improved socio-economic life of Nigerians through the provision of mass housing to satisfy the human need for shelter;
- Wealth creation and economic preservation of wealth;
- Fostering the development of the capital market by enhancing the availability of investible financial instruments e.g. the mortgage Backed Securities (MBS), real estate investment trusts (REITS), the creation of employment opportunities for various groups of professionals, artisans and manufacturers along the estate development process such as architects, engineers, surveyors, estate developers, town planners, bricklayers, carpenters, labourers, building materials manufacturers and retailers, etc;
- The provision of a sound basis for the determination of housing stock and statistics in Nigeria; and
- The attraction of foreign direct investment (FDIs) into the housing sector.
With particular reference to redressing the challenges of unemployment, it is a proven fact that mass housing development creates jobs and spending both during construction and after the homes are occupied. According to Shelter journal study on the Irish economy, every 1 unit of public investment in new housing generates 3.51 units in economic output.
Housing delivery involves a host of economic activities that open themselves to job creation, principal among which are project design and conception, housing construction, mortgage financing and building materials production, to mention a few.
Asides from direct activities, many other economic opportunities arise from associated backward and forward production activity linkages of the housing development chain.
Despite advances in building technology, it is known that housing remains largely labour intensive. This nature prevails throughout the value adding chain involved in housing delivery.
Opportunities for job creation arise from associated backward and forward production activity linkages of the housing development chain, which requires investment and enabling government policies to improve the rate of employment in the country.
The future is ripe for real estate development in Nigeria and the potentials are huge; a goldmine unexplored.
Culled from REDAN