Tag: real estate

By Ugbene Chisom Yvonne

Real estate investment is one of the major areas of investment, a critical driving force behind the economic growth of developed nations of Europe, United States of America, China, United Arab Emirates, to mention a few, and a significant contributor to their financial economies.

Known for its dynamic housing market and flourishing commercial property sector, real estate market is incredibly diverse across the different states and cities of the United States of America, with the commercial real estate market presenting lucrative investment opportunities for those aspiring to diversify their portfolios. Government policies, in addition to economic factors such as job growth and interest rates, are not only pivotal to shaping the market, but have a significant impact on the real estate landscape in the United States, with about 20% contribution to its GDP. Real estate markets and practices in Europe and the other developed economies exhibit similarities with the United States, regulatory differences notwithstanding.

Though driven by different factors, both markets attract foreign buyers. Property transactions, property management, and valuation are integral components in the markets. Mortgage financing, property insurance, and property taxes are common aspects of real estate in their economies, while real estate professionals, agents and brokers, play similar roles in facilitating property transactions. In summary, real estate in these countries is very dynamic, contributing significantly to the growth and development of their economies. Real estate is a key driver of their economies.

 Unlike in Europe and the United States of America, real estate sector in Nigeria remains largely untapped for economic growth and development. Nigeria has not fully unlocked the potential of real estate, neither have we fully explored the opportunities in property investment, construction, infrastructure development, property transactions, land-based taxes and many more. Until we go this route, we would not be able to create abundant wealth, jobs, generate revenue, and improve overall economic development.

Even with all the activities we see around, real estate sector is still heavily underdeveloped; there are still a lot of opportunities for development within the sector, the prospects are there for the industry to thrive. And as long as we fail to diversify the economy, tap into the real estate sector, fully unlock, optimize and maximize its potential, Nigeria would not make rapid and sustainable development. If real estate can drive the economies of Europe and America, it can as well drive our economy. Real estate potential is too huge for Nigeria to have over-relied, and even still relying on crude oil; in fact our over-reliance on oil has hindered our development. Mortgage finance which plays a pivotal role in the development of housing markets for instance, is yet to impact the Nigerian real estate in a remarkable war.

Nigeria’s real estate sector, according to industry players, present enormous opportunities. Its market value is estimated at $2.61 trillion in 2025, with residential real estate accounting for approximately $2.25 trillion, and its contribution to the nation’s GDP at about 5%. That Nigeria’s housing deficit is huge and in several millions is evidence that the sector is highly underdeveloped, and offers investment opportunities, particularly in the cities and urban areas. The housing deficit could even be higher than the 21 million units being brandished, considering our ever increasing population, rapid urbanization, the number of graduates the universities and other tertiary institutions produce yearly, many of whom would secure jobs and would need accommodation to settle down, as well as many other Nigerians in need of shelter over their heads.

If we really want to boost the economy, create jobs and wealth, we should look into the direction of real estate. The real estate sector has a crucial role to play in achieving Nigeria’s N1 trillion economy and in making Nigeria become a prosperous nation, but we have to get a number of things right.

Going forward, real estate in Nigeria would remain ‘untapped goldmine’ as long as we fail to remove the ‘landmines’ on the path to fully unlock its potential.

Read Also: Experts urge Nigerian universities to prioritise soft skills training to tackle youth unemployment

The dismal rate of land registration (less than 3%) hinders efficient real estate transactions, and makes the country hostile to real estate development. The Land Use Act call for urgent reforms, and failure to reform the Act would keep inhibiting the growth of the real estate sector, and its ability to drive our economy. 

About 94% of properties in Lagos for instance are not registered. This undermines property taxation. We need to streamline and harmonize the registration process for transparency, and unify land tax system. These are crucial for the growth of the sector. To ensure improved efficiency and transparency in land registration, property transaction, and tax administration, we must deploy and use technology; after all, we live today in a technology-driven world. Property development is a lucrative business across the world, without which no country can develop seriously and speedily. 

The biggest challenge of real estate as an investment portfolio, and infrastructure development is liquidity, and unless we have a way around liquidity, we will continue to have serious challenges. In this regard, Public-Private Partnerships; that is, collaboration between the public and private sectors would leverage resources and expertise for large-scale infrastructure and real estate development projects. It would do us a lot of good if we maximize opportunities provided by this arrangement to stay ahead of industry shifts and leverage emerging trends in real estate and construction.

Government must come up with a clearer, and more focused housing and real estate policy to show direction for operators and participants in the sector to plan accordingly, so that activities in the sector will step up, and when there are activities in the sector, initiatives will come up within the sector and other sectors, then the real estate can thrive.

Strong compliance to regulatory frameworks must be ensured, while adoption of property technology, digital transformation, sustainability and green building practices, integrated urban planning, innovative financial solutions, affordability and sustainability combined would transform the Nigerian real estate landscape into a powerful engine for national development. Within this narrative lies our ability to shape the future of Nigeria’s real estate sector, make it effective and key driver of sustainable economic growth, employment generation, and improvement of the overall well-being of its citizens.

•ESV Ugbene is an estate surveyor and valuer.

• By Augustine Udoh

Though rightly adjudged and generally acknowledged as the leading economy in Africa, Nigeria’s economy has at various times been challenged, slipping in and out of recession, but has remained resilient.

The economy is highly dependent on crude oil, and according to the Organization of Petroleum Exporting Countries (OPEC), the product accounts for about 10% of the country’s GDP, 70% of government revenue and more than 83% of the country’s total export earnings.

This over-dependence on crude oil, experts say, makes the economy vulnerable. At different points, production and exploration were challenged by the activities of militants in the South/south, which further compounded the situation, with adverse effects on the nation’s over 200 million population.

A vast majority of the population is affected by the bold policies introduced by the President Tinubu-led administration to restructure and stabilize the nation’s economy, to reduce poverty, to lay a solid foundation for economic growth and sustainable development, and to secure the future of the country.

Despite the president’s efforts at revamping the economy, the country is still being troubled by a combination of several other challenges, such as epileptic energy supply, deficient public infrastructures and human development, widespread corruption and poor governance, instability of government policies and initiatives, brain drain, insecurity, high inflation, rising unemployment and high cost of living. All of these have pushed the country into great distress and the citizens stuck in untold hardship and a general anomie of despondency.

A World Bank report released in October 2024 states that over 56% of Nigerians live below the national poverty line. Economic situation in Nigeria has deteriorated significantly, with the country’s purchasing and selling situation seriously depressing, annual profits decreasing, significantly affecting the country’s population.

Though economic challenges might be huge and overwhelming, Nigeria remains a country of great potentials. The economy only needs re invigoration and concerted efforts of all stakeholders to place it on a sound footing for sustainable development. Fortunately, that is what the current administration is doing,  carrying out series of reforms notably in the oil and gas sector with the deregulation of the downstream sector, and floating of the naira. It is expected that these steps will enhance efficiency in the economy, with the government becoming less bogus, less bloated and less corrupt. Government has also channelled several billions of oil revenues into other sectors of the economy such as, agriculture, technology, infrastructure, especially oil sector infrastructure and power in an effort to boost the diversification of the economy.

Read Also: We’ll reshape economic diplomacy to build a progressive West Africa – Tinubu

These are commendable initiatives, but the government needs to pay more attention to infrastructure, real estate and construction either by direct investment, or by partnering with the private sector, but most importantly by creating a more conducive environment for sustainable investment in these critical areas via clearly laid out and workable policies.

It might be a bit tough and painful now, but the encouraging signs of economic progress, stabilized exchange rates, GDP growth, increased government earnings, and increased allocation to the federating states are enough to douse the pains of the moment, and to give us assurances that Nigeria is undergoing a significant economic transformation.

As it’s the case in most developed economies, any initiative aimed at revitalizing the economy must be done through heavy and steady investment in real estate and infrastructure.

The federal government must be ready to make large budgetary allocations to infrastructure and pursue aggressive intervention in housing development and supply, and come up with helpful policies to stimulate and deepen private sector participation in housing delivery if we really want to reflate and lift the economy out of the doldrums, lift millions of Nigerians out of poverty, and promote the much desired social order.

It is the way the economy is patterned that real estate latches on. There are prospects for the industry to thrive; the sector is heavily underdeveloped at the moment. There are still a lot of opportunities for development within the real estate sector, but those opportunities can only be realized by conscious efforts of government and private sector commitment to realizing them.

 About 30% of Nigeria’s population of about 200 million is still struggling to have quality and affordable housing. This translates to about 28 million housing deficit which implies that the country’s housing sector needs urgent investment.

But the truth of the matter is that housing shortage provides incentives for development, as there are huge opportunities there in the real sense of it. Real estate sector in other climes contribute hugely to Gross Domestic Product. In Nigeria, the statistics we have indicates that housing contributes about 5.4%, which is grossly inadequate. In the United States of America and United Kingdom, you have contributions of 18%-20% to GDP.

I think it is time to appreciate the fact that no other investment is comparable to real estate investment. I recollect the losses some investors incurred in the capital market as a result of the global economic meltdown or the global financial crisis some years ago, the consequences were legion and many investors lost heavily. Some never recovered from the shock and the losses. This would not happen to real estate investment. Real estate is secured and more reliable. It is not only a reliable investment alternative, but a viable and enduring one. It is an investment you can fall back on aftermath a crisis, it is the only investment that hedges against inflation, and it appreciates with time.

The real estate market in Nigeria is filled with lots of opportunities for profitability and the fact that real estate appreciates in value over time suggests that real estate is a better alternative to other investments, and a reliable route to revamp the economy.

Let us face the reality, real estate has a great multiplier effects positively. Real estate, infrastructure and construction absorb a lot of people, the engineers, builders, artisans, technicians and the end-users. We need to realize that we are dealing with labour and materials in the construction industry. Government should recognize and invest in the critical variables in the housing sector; otherwise the problems will remain largely unresolved.

 For instance, when government or private developers acquire land for housing development, government needs to provide infrastructure, which is access road, water, electricity and other facilities that will make the place habitable. This is because once the cost of infrastructure is removed; the remaining cost of the project is negligible.

What is required is a leadership with the understanding and capability to set the tone and direction for national growth and development which must incorporate all citizens, irrespective of ethnic or geopolitical affiliation in a grand vision of collective dynamic growth.

 Inevitably, a growing economy represents the best pathway toward addressing many of the social and economic challenges Nigeria now faces in its 62nd year of independence, and the most viable way to drive this is through investment in real estate and infrastructure.

•Udoh is an Estate Surveyor and Valuer based in Lagos.

• By Augustine Udoh

Though rightly adjudged and generally acknowledged as the leading economy in Africa, Nigeria’s economy has at various times been challenged, slipping in and out of recession, but has remained resilient.

The economy is highly dependent on crude oil, and according to the Organization of Petroleum Exporting Countries (OPEC), the product accounts for about 10% of the country’s GDP, 70% of government revenue and more than 83% of the country’s total export earnings.

This over-dependence on crude oil, experts say, makes the economy vulnerable. At different points, production and exploration were challenged by the activities of militants in the South/south, which further compounded the situation, with adverse effects on the nation’s over 200 million population.

A vast majority of the population is affected by the bold policies introduced by the President Tinubu-led administration to restructure and stabilize the nation’s economy, to reduce poverty, to lay a solid foundation for economic growth and sustainable development, and to secure the future of the country.

Despite the president’s efforts at revamping the economy, the country is still being troubled by a combination of several other challenges, such as epileptic energy supply, deficient public infrastructures and human development, widespread corruption and poor governance, instability of government policies and initiatives, brain drain, insecurity, high inflation, rising unemployment and high cost of living. All of these have pushed the country into great distress and the citizens stuck in untold hardship and a general anomie of despondency.

A World Bank report released in October 2024 states that over 56% of Nigerians live below the national poverty line. Economic situation in Nigeria has deteriorated significantly, with the country’s purchasing and selling situation seriously depressing, annual profits decreasing, significantly affecting the country’s population.

Though economic challenges might be huge and overwhelming, Nigeria remains a country of great potentials. The economy only needs re invigoration and concerted efforts of all stakeholders to place it on a sound footing for sustainable development. Fortunately, that is what the current administration is doing,  carrying out series of reforms notably in the oil and gas sector with the deregulation of the downstream sector, and floating of the naira. It is expected that these steps will enhance efficiency in the economy, with the government becoming less bogus, less bloated and less corrupt. Government has also channelled several billions of oil revenues into other sectors of the economy such as, agriculture, technology, infrastructure, especially oil sector infrastructure and power in an effort to boost the diversification of the economy.

Read Also: Kaduna has no reason to vote against Tinubu in 2027 – Speaker Abbas

These are commendable initiatives, but the government needs to pay more attention to infrastructure, real estate and construction either by direct investment, or by partnering with the private sector, but most importantly by creating a more conducive environment for sustainable investment in these critical areas via clearly laid out and workable policies.

It might be a bit tough and painful now, but the encouraging signs of economic progress, stabilized exchange rates, GDP growth, increased government earnings, and increased allocation to the federating states are enough to douse the pains of the moment, and to give us assurances that Nigeria is undergoing a significant economic transformation.

As it’s the case in most developed economies, any initiative aimed at revitalizing the economy must be done through heavy and steady investment in real estate and infrastructure.

The federal government must be ready to make large budgetary allocations to infrastructure and pursue aggressive intervention in housing development and supply, and come up with helpful policies to stimulate and deepen private sector participation in housing delivery if we really want to reflate and lift the economy out of the doldrums, lift millions of Nigerians out of poverty, and promote the much desired social order.

It is the way the economy is patterned that real estate latches on. There are prospects for the industry to thrive; the sector is heavily underdeveloped at the moment. There are still a lot of opportunities for development within the real estate sector, but those opportunities can only be realized by conscious efforts of government and private sector commitment to realizing them.

 About 30% of Nigeria’s population of about 200 million is still struggling to have quality and affordable housing. This translates to about 28 million housing deficit which implies that the country’s housing sector needs urgent investment.

But the truth of the matter is that housing shortage provides incentives for development, as there are huge opportunities there in the real sense of it. Real estate sector in other climes contribute hugely to Gross Domestic Product. In Nigeria, the statistics we have indicates that housing contributes about 5.4%, which is grossly inadequate. In the United States of America and United Kingdom, you have contributions of 18%-20% to GDP.

I think it is time to appreciate the fact that no other investment is comparable to real estate investment. I recollect the losses some investors incurred in the capital market as a result of the global economic meltdown or the global financial crisis some years ago, the consequences were legion and many investors lost heavily. Some never recovered from the shock and the losses. This would not happen to real estate investment. Real estate is secured and more reliable. It is not only a reliable investment alternative, but a viable and enduring one. It is an investment you can fall back on aftermath a crisis, it is the only investment that hedges against inflation, and it appreciates with time.

The real estate market in Nigeria is filled with lots of opportunities for profitability and the fact that real estate appreciates in value over time suggests that real estate is a better alternative to other investments, and a reliable route to revamp the economy.

Let us face the reality, real estate has a great multiplier effects positively. Real estate, infrastructure and construction absorb a lot of people, the engineers, builders, artisans, technicians and the end-users. We need to realize that we are dealing with labour and materials in the construction industry. Government should recognize and invest in the critical variables in the housing sector; otherwise the problems will remain largely unresolved.

For instance, when government or private developers acquire land for housing development, government needs to provide infrastructure, which is access road, water, electricity and other facilities that will make the place habitable. This is because once the cost of infrastructure is removed; the remaining cost of the project is negligible.

What is required is a leadership with the understanding and capability to set the tone and direction for national growth and development which must incorporate all citizens, irrespective of ethnic or geopolitical affiliation in a grand vision of collective dynamic growth.

Inevitably, a growing economy represents the best pathway toward addressing many of the social and economic challenges Nigeria now faces in its 62nd year of independence, and the most viable way to drive this is through investment in real estate and infrastructure.

•Udoh is an Estate Surveyor and Valuer based in Lagos