Competition in Real Estate Economy : Catalyst for Development in Nigeria
With the increased awareness of the importance of becoming a landlord in Nigeria, the competitive nature of the real estate industry has led to more attempts in satisfying prospective buyers and investors than ever experienced.
Recent trends have seen clients getting swayed by the provision of incentives in different forms, ranging from discounts on land prices to gifts attached to units bought. Some offer a secured self-sufficient environment for buyers while others call on investors with the promises of massive ROI (Return-On-Interest).
The latest spike in competition among the active players in the real estate industry can be attributed to the rise in population within the last decade. According to statistics gathered from Nigeria Population Commission, the country witnessed an increase of over 47 million persons within the last decade as the population increased from 158,503,197 in 2010 to 206, 139, 589 in 2020.
These statistics also revealed that compared to previous years and decades, there are more persons living in urban areas than in rural sections in 2020, with 107, 112, 526 persons choosing the urban side to 99, 027, 063 living in the underdeveloped rural section in Nigeria. This is in contrast to 2015 statistics which revealed 86, 673, 094 urban residents and 94,464,354 rural dwellers.
This population increase, especially in urban areas, has created the need for different sectors to up their games. Indeed, this new trend is for the benefit of prospective house owners.
With the housing sector still at the deficit of about 17 million in the country, this presents a unique opportunity for the industry to boom beyond the fast growth it is experiencing at a rate of 8.7 percent better than the average GDP, according to the accounting and auditing firm PricewaterhouseCoopers (PwC).
As it stands, real estate will gain more speed in contributing beyond the 6.85% it is making to the Nigerian economy as of 2020, according to the budget. Of prominent mention is the Eko Atlantic City, a massive project which is expected to provide accommodation for about 450, 000 persons in Lagos upon completion.
This shows that investors are stepping into the industry and it can only get better.
This is therefore a call on the government to provide an enabling environment for the industry to thrive by improving the living standard of the middle-class who dominate the population. Lastly, policies that will make investment conducive should be implemented.
The real estate sector has been touted to be a significant contributor to economic development in the wake of the decline of the oil sector. There can not be a better time for the country to channel resources into the industry if not now.