Nigeria’s real estate sector is set for exponential growth, with projections indicating a market volume of $3.41 trillion by 2029, according to data from Statista.
Speaking at a weekend press briefing, the Board Chairman of Creative Sphere Limited, Mr. Ayo Ogedemgbe, outlined strategies to attract global investors and bridge Nigeria’s $300 billion infrastructure gap. He emphasized the need for collaboration between local developers and international financiers to unlock the sector’s full potential.
Ogedemgbe made these remarks ahead of the Real Estate Innovation and Investment Carnival, scheduled to take place from May 20 to 22 at The Velodrome, National Stadium, Abuja.
“Having been in this sector for over 20 years, I have seen firsthand the contribution of real estate to our economy,” he said.
“In fact, available data shows that real estate contributes 6.3% to GDP and employs 15% of our workforce, suggesting that this sector holds the keys to unlocking prosperity for millions. Yet, as we celebrate its potential, we must also confront its challenges with clarity and courage.”
While stressing the need to address the myriad of challenges facing the sector, he lamented that the 28 million housing deficit “is more than a statistic, it represents families without shelter, dreams deferred, and a ticking social time bomb.
“With urbanization rising at 4.3% annually, our cities are bursting at the seams. Lagos alone needs 1.5 million new homes by 2030 to keep pace.
“The African Development Bank estimates Nigeria’s infrastructure deficit at $300 billion. Poor road networks, erratic power supply, and inadequate water systems inflate construction costs by up to 35%, stifling affordability.
“While $1.2 billion in FDI flowed into real estate in 2022, access to capital remains a hurdle for local developers. Mortgage penetration is a meager 2.5% (compared to 30% in South Africa), locking out middle-income Nigerians.
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“Land tenure disputes and bureaucratic delays plague projects. In Lagos, securing a title deed can take 18 months, deterring investors and inflating costs.”
Reeling out some of the abounding opportunities in the sector, he observed that “with a population of over 220 million, 60% under 25, Nigeria’s youth are future homeowners. Urbanization, while a challenge, is also a catalyst. By 2050, 65% of Nigerians will live in cities, driving demand for housing, offices, and retail spaces.
“Technology is revolutionizing real estate. Startups like Spleet and Estate Intel are digitizing rentals and market analytics. Blockchain can streamline land registries, while green buildings, aligned with Nigeria’s 2060 net-zero pledge can cut energy costs by 40%.
“Our real estate market, projected to hit $100 billion by 2030 (FBNQuest), offers unparalleled returns. From Real Estate Investment Trusts (REITs) to public-private partnerships, models exist to de-risk investments. The Lagos Smart City project, a $2.5 billion venture, shows what collaboration can achieve.
“The government’s focus on affordable housing, evidenced by the National Housing Program (Renewed Hope Cities and Housing Initiatives) and tax incentives for developers signal progress. States like Kaduna are automating land registries, slashing approval times by 70%.
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