Stakeholders in the real estate in Nigeria have predicted that the country’s Gross Domestic Products (GDP) may increase from the current N2.11 trillion($9.6 billion) to N2.98 trillion ($13.65 billion) in 2016, if the right environment is provided by the government.
The experts revealed that over 164,100 square metres space of new office space will be ready in Nigeria between 2015 and 2017. 144,100 square metres of that figure would be available in Lagos, while 20,000 square metres office space would be available in the federal capital territory, Abuja.
They explained that macroeconomics, capital policies and standards, demographic shifts, rapid urbanisation, increased political stability, sustainability in city planning, infrastructure deficit, industrialisation, consistent data and technology would be the major key drivers for growth. Their calculation was also based on the PWC’s projection and the increasing opportunities in the country as well as the growing number of international property investors and corporate occupiers in the sector.
However, the experts canvassed for clear policies direction to enhance seamless land accessibility, infrastructure development, proper legislation on Real Estate Investment Trust (REIT) and other incentives to realise the growth. To make the growth a reality, they argued that policy response framework must be formulated with the consideration of sustainability principles, with particular attention to population growth, urbanisation limits and the use of natural resources.
They also expressed the hope that increased political stability and participation in local partnerships would continue to ease investors’ concerns relating to investing across Nigeria. Giving credence to the predicted growth at a forum of Real Estate Unite 2015 in Lagos, Managing Director of Federal Housing Authority (FHA), Mr. Roland Igbinoba, said that Nigeria has been projected to be 440 million people by 2050. He added that the ever increasing middle class urban population would require more housing.
Originally published in 3 invest