Stakeholders Advocate Incentives To Drive Real Estate Growth

Stakeholders in the real estate sector have emphasised the need for government to provide incentives across the entire real estate ecosystem to reap its potentials of wealth creation, job creation and economic prosperity.

This was stated at the Nigerian British Chamber of Commerce (NBCC) and the International Real Estate Federation (FIABCI) Real Estate Outlook 2023, with the theme; ‘Pitching Your Tent Post 2023 Elections’ held in Lagos.

The chief consultant, B. Adedipe Associates Limited, Dr Biodun Adedipe, stated that, there is a nexus between the real estate sector and the economy, adding that, a 0.79 correlation existed between the country’s Gross Domestic Product (GDP) growth rate and the sector’s growth.

According to him, a focused government would give proper attention to the property market, availing as many incentives as can be emplaced for the entire real estate ecosystem.

“The real estate sector is among the big six sectors that drive economic growth and while the sector has showed strong growth, it is contribution to GDP appears to be trending downwards.

“This means there is room for investments to get the kind of impact we need to improve GDP seeing that real estate is systemic to every modern economy if given the right push.

“The 2030 projections for increasing population pegged at 8.5 billion people means the real estate must be properly positioned to create the value across all strata as its expected to be,” he pointed out.

The managing director, Alitheia, Mrs Jumoke Akinwunmi, stressed the need for the execution of affordable housing to bridge the housing deficits in the country, saying, “however, its success was hinged on the partnership between the private and public sectors.”

Akinwunmi urged government to provide more levers to make affordable housing a reality.

“There is also the need to create institutions that would serve as middlemen between the government and private sector for easy accessibility and to achieve the success it deserves,” she said.

Chief executive officer, Sonedis Logistics, Dr Solomon Aigbavboa, pointed out the opportunities for logistics particularly warehousing within the real estate ecosystem.

He noted that the warehousing market size which had an annual growth rate of 11 per cent would worth 170 million dollars by end of 2023.

He stated that its major drivers included increasing population, rising demands for e-commerce and the rising demand for refrigerated warehousing.

CEO, Frank Knight Nigeria, Mr Frank Okosun said, post 2023 elections and following a transition to a new democratic regime, the property market may see a pent up demand.

In her remarks, special adviser to Lagos State governor on Housing, Ms Toke Benson-Awoyinka, reiterated that, the real estate sector remained a focal point of the Governor Babajide Sanwo-Olu’s administration.

She said that Lagos would continue to explore data gathering, create policies and regulations to spur investments and address housing deficits within the state.