The real estate sector have always been a growing sector and has recently become one of the most profitable sectors of the Nigerian economy. The growth rate of this sector in recent times can be attributed to various factors including an expanding middle class, foreign direct investment and others.
According to the Managing Director of The Infrastructure Bank (TIB), Mr Adekunle Oyinloye, while delivering a paper at a business forum in Lagos, the sector is expected to grow by 10 per cent annually in the next 10 years. He also stated that according to the Nigerian Bureau of Statistics, The Nigeria real estate market was valued at approximately N1.4 trillion in 2011 and has risen to N6.5 trillion in 2015.
These analyses confirm the long contemplated fact that the real estate sector will in the next couple of years become a giant contributor to the Nigerian economy and it will be responsible for a major wealth redistribution effect that will occur as a result of the emergence of policies such as the PENCOM Act 2014 that encourages pension funds to invest in real estate to enrich their policy holders and serve as a general source of income for pensioners.
The mortgage sub-sector of this industry is another factor that will contribute to the growth of this sector in the coming years. Nigerians have little understanding of the current mortgage laws and how they can benefit from them but as a result of the increasing flow of information, Nigerians are expected to make use of this sector of the economy and become home-owners without emptying their coffers.
The world is beginning to notice that Africa is the next Mecca for investment and what is better to invest in than the real estate industry. The increasing population of this region of the world especially in a country like Nigeria has necessitated the need for more housing units. In its present state, Nigeria has a deficit of over 17 million housing units which needs to be serviced, also about 60% of its population are in the working class of the economy. 50% of Nigerians currently live in rented apartments which is a very lucrative sub-sector for an investor who can recognize the need for this.
The above stated factors proves that the real estate sector is in for a very significant boost in coming years and despite the fact that the entire economy of the country is on fritz right now, those few investors that can project far enough can see that this is a gold mine yet to be fully tapped and early investment will lead to enormous reaping in the future.