In the year 2013, Ernst& Young projected, Sub Sahara Africa Foreign Direct Investment projects in the real estate, hospitality and construction sector increased by 63 percent, making the real estate sector the fifth most attractive in terms of investment and returns to investors.Also in the same year, FDI into Nigeria was $7.3 billion and projected to increase to $9.6 billion by 2015. The Nigerian Investment Promotion Commission estimates that Nigeria needs investment of $100 billion over the next 6 years for projects including roads, electricity, oil and gas, railways and housing.
As these funds flow into country and especially into infrastructure, there’s an increasingshift towards real estate investment. Consequently, the real estate sector is primed and ready to take advantage of these changes and, more than ever before, the Nigerian Government is rapidly appreciating the role real estate development plays in the growth of the economy. This sector has evolved and recorded tremendous growth despite the Naira devaluation, fall in oil prices and decline in the stock market. The reason is simple; shelter remains one of man’s basic and most important needs.
To a large extent, the real estate sector continues to drive the Nigerian economy because the benefits arising from the growth of this industry births other opportunities such as an increasing demand for labour which is a bold attempt at bridging the unemployment gap, investment potentials, guaranteed returns on investment amongst other things.
Despite this laudable development, the industry and its stakeholders still face huge challenges owing largely to huge capital investment required, inadequate resources and the age-old question of financing. These challenges are commonplace with stakeholders such as developers and even consumers. The average Nigerian desires to own a house (bought or built) but perceives it more as a life-long aspiration than an achievable goal in the short-term.