‘How construction, real estate sectors could impact economic growth in 2022’
*Experts highlight role of right policies
By Onyebuchi Sampson
Following positive show of the construction and real estate sector in the nation’s Gross Domestic Product (GDP) growth in 2021, eggheads in the sector have called for favourable policies to ensure its sustenance in 2022.
They noted that though the sector presents an opportunity for steady growth and expansion, certain fundamentals must be in place to engender such growths.
The experts, spoke at an event, titled: “Nigerian Economic Outlook 2022: Intersection with the Real Estate Sector- Top Real Estate Trends to Watch”, organised by Nigerian- British Chamber of Commerce (NBCC) in Lagos.
They also noted the impact of 2023 elections on the sector, stressing that the election may dent the overall optimism depending on impact on the polity.
According to them, real estate thrives disposable income, interest rates, strong macro pricing, inflation, off the back of fundamentals. among others.
Leading discussions at the event, Founder/ CEO of RTC Advisory Services Ltd, Mr Opeyemi Agbaje, noted that the country’s real estate and construction sectors have seen four quarters of recovery, and will provide critical opportunities for economic growth, given the right policies and improved security, despite the cumulative effect of high inflationary trends and high-interest rates.
“We cannot ignore the obvious effect of inflation, foreign exchange challenges, insecurity and high unemployment rates, but Nigeria’s economic fundamentals remain strong and the Real Estate sector now represents an opportunity for steady growth and expansion. It will be a key driver for the country’s recovery alongside the Agriculture, Agribusiness, Agric Technology, Healthcare and FinTech sectors” Agbaje said.
Setting his sights on the 15 major trends to watch in the construction and real estate sectors, Chairman of the NBCC Construction and Real Estate Group, Mr Hakeem Ogunniran, observed that real estate thrives off the back of strong macroeconomic fundamentals and the 25 percent homeownership rate in Nigeria reflects the challenging operating environment. ‘Nevertheless, there are certain trends in the sector that will bear watching in 2022,” he said.
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Ogunniran stressed that the absorption capacity of the market varies from one segment to the other.
“There will be regulatory and compliance intensity, with heightened title uncertainty in high profile locations.
“However, technology can be expected to take centre stage in the sector this year, with extremely strong growth prospects for growth in comfort homes, led by demand from first time home buyers, millennials, young families and empty nesters,” he added.
Reinforcing Ogunniran’s thoughts on the emergence of increased regulatory oversight in the Real Estate sector, the Special Adviser to the Lagos State Governor on Housing, Ms Toke Benson-Awoyinka, harped on the need to curb fraudulent practices and emphasised the State Government’s commitment to sanitising the industry.
Earlier, the President and Chairman of Council of the Nigerian-British Chamber of Commerce, Mrs Bisi Adeyemi, observed that the Real Estate Sector has been tagged as a major contributor to the country’s economic growth this year.
“The major objective of this event is to examine the opportunities, challenges and indeed the threats in the real estate sector in 2022. The Real Estate Sector showed positive GDP growth in 2021 and has been identified as one of the sectors to look out for this year. We have assembled distinguished subject matter experts that will ensure we all leave here better informed,” she added.