Real estate sector shows resilience

The Nigerian real sector has consistently continued to grow and attract attention from foreign investors from all over the world.

Despite the challenging global economy and downward trend recorded in other sectors, the Nigerian real estate sector has posted a consistent growth rate, over a five year period of a little above 16%.

Real estate experts posit that the boisterous middle-class purchasing power of about $28m and an annual expected influx of foreign investment worth $500m, is a sign of good things to come.

Also the current housing deficit in Nigeria, put at 17million units, gives investors a whole new avenue of opportunities.

Speaking on real sector and its growth possibilities, the Managing Director, FSDH Asset Management Limited,Olumayowa Ogunwemimo said “Financing of the real estate activities by providers of long-term capital can be through equity investments, Real Estate Investment Trusts (REITs) or Bonds,” she said, pointing out however, that fund managers in this sector always considered a number of things including competitive returns, low volatility, liquidity, transparency, and diversified portfolio of both the project and the developer.”

Meanwhile, another expert, Adekunle Oyinloye, Managing Director/CEO, The Infrastructure Bank (TIB), estimates that the total investment opportunities in Nigeria, is valued at about $385 billion.

You will recall that the World Bank recently put Nigeria’s housing deficit at about 17 million units. A report most investors see more as an opportunity, than a disadvantage.

Futhermore, new initiatives have been put in place to reduce housing deficit.