The real estate sector in Nigeria will record 2.9 percent in 2022 on the back of the Central Bank of Nigeria’s (CBN) support program for the sector, expected enabling environment, and other factors, Housing Development Advocacy Network (HDAN) has predicted.
The group also hinged its prediction on what it sees as a bright outlook for the sector, arising from its good performance in the previous year when it recorded 2.3 percent growth as against 1:9 percent predicted.
“2021 was not that bad for the real estate sector as we recorded better performance than was expected. Though it started slowly in the second quarter of the year, the sector picked up and the outlook was fantastic as we ended the year with 2.3 percent growth.
“That is not too bad given the challenges and uncertainties in the economy and also the damaging role of some bad elements in the sector who were engaged in sharp practices,” said Femi Oyedele who was a guest speaker at HDAN’s Real Estate Outlook 2022 program in Abuja.
Oyedele recalled the Ikoyi building collapse which claimed about 45 lives, describing the incident which involved a 21-story building, still under construction, as the first of its kind in terms of scale and calamity in the sector.
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He mentioned other factors that contributed to the growth seen in the sector in the out-gone year. These included the use of technology now being deployed to allow virtual interactions among industry players, clients, and sundry stakeholders.
The monthly rent scheme being promoted by the federal ministry of works and housing and the Lagos State government also contributed to the growth of the real estate sector in the last year.
Another major event of last year in the sector was the delivery of 5,000 out of the proposed 300,000 housing units by the Federal Ministry of Works and Housing which a lot of people applied for such that the ministry got more than what they expected. In other words, the houses were over-scribed.
Within the year, many businesses recovered from the crippling impact of Covid-19 which, according to Oyedele, was an assurance that 2022 would be better.
“I am of the opinion that the growth recorded in 2021 will be sustained and don’t forget that we are entering into an electioneering period. Lagos State government is doing so much and FCT is also talking about land-swap and if this is properly executed, it will have a great impact on the sector in the year 2022,” he noted.
Oyedele, an estate manager, expects that things would look up and also hopes that if politicians are able to find solutions to the insecurity challenges in the country, especially ahead of the 2023 general elections, the economy would grow and real estate would benefit from that.
“So, we are very optimistic that 2022 would be peaceful and, with that, Diaspora Nigerians and foreign investors would be attracted to the sector,” he hoped.
