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Real estate ‘23 outlook is bright – analysts

Real estate ‘23 outlook is bright – analysts
Photo by Kam Idris- Ask Nigeria

Experts assert that there will be sustained growth in 2023 than 2022.

Experts and analysts have opined that the future of the real estate sector in 2023 is bright given its good performance record in the first three quarters of 2022. In 2022, the real estate sector contributed N7 trillion to the national Gross Domestic Product (GDP); there was also an improvement in investors’ trust as a result of the housing schemes initiated in the third and fourth quarters of last year. Thus, experts assert that the real estate sector will welcome sustained growth in 2023.

Analysts are of the opinion that regardless of the party that wins the forthcoming elections, there would be an improved performance in the real estate sector. A prediction of sustained growth in the industry by experts and analysts from the Bismarck Rewane-led Financial Derivatives Company (FDC) reported that there will be an expansion of the real estate industry in 2023 by 5.2 percent. The report added that there will be an increase in the real estate’s contribution to the Gross Domestic Product (GDP) to 6.5 percent in 2023 due to high population and urbanization growth.

Real estate’s contribution to GDP is likely to increase to 9.2%.

However, the experts identified increase in the cost of building materials, forfeiture orders on properties of politically recognized individuals, high interest rate environment and poor land acquisition policy as major challenges in the industry in 2023, and already initiated projects by the previous administration may be abandoned. Based on the opportunities present in the construction sector, there would be a likely increase in its contribution to the GDP to 9.2 percent owed to increased spending and investment on road infrastructure with the Nigerian Government having conceded 12 federal highways.

Emphasizing the bright future of the real estate sector in 2023, Managing Director and CEO of Fame Oyster and Co., Mr. Femi Oyedele, stated that the outlook of real estate is promising with reference to the Central Bank of Nigeria (CBN)’s new cash policy and naira notes. He added that with the change of the color of naira notes by the CBN and the maximum cash withdrawal policy, Nigerians who stack money in the house causing money redundancy rather than circulation have been left with few options.

President Buhari is urged to give assent to the National Building Code.

Oyedele said that banks will now have adequate cash which will in turn provide them with adequate balances and money to give out as loans. By so doing, people will grow more interest in housing products as investment forms – with the outdated era of keeping money at home and in offices. The estate surveyor and evaluator affirmed that the real estate sector is expected to yield a more improved performance in 2023 than 2022 because in Nigeria, election year is usually the best performing year.

Concerning major reforms that should be done in the sector in 2023, CEO of Fame Oyster and Co. appealed to President Muhammadu Buhari to give assent to the National Building Code (NBC) including the need of a committee on the formulation of “National Affordable Housing Policy.” The real estate guru further posited that it is high time the nation reduced usage of foreign materials in the construction of buildings to reduce cost. He also said that there should be a reduction in the use of cement for walls, and the need to encourage the use of bricks.

Femi Oyedele predicted a 2.9% growth rate in the sector in 2022.

This time in 2022, Mr. Femi Oyedele, at a Real Estate outlook 2022 event, had made a prediction that the real estate sector would witness a 2.9 percent growth rate in 2022. “I am optimistic that 2022 would be much peaceful and with that, Diaspora Nigerians and foreign investors would be attracted to the real estate sector,” he had said then. He had also added that politicians would find solutions to insecurity challenges in the country ahead of the 2023 general elections.


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Admin
1
25 days ago

Real estate ‘23 outlook is bright – analysts – Experts assert that there will be sustained growth in 2023 than 2022. – Express your point of view.

Member
8
24 days ago

The real estate industry had a strong record of success throughout the first three quarters of 2022, which bodes well for the sector’s prospects in 2023.

Member
8
24 days ago

Due to the housing initiatives that were launched in the third and fourth quarters of the previous year, there was also an increase in the level of trust that investors had in the company.

Member
8
24 days ago

Based on the experts, there has been an increase in the cost of building materials, there have been forfeiture orders placed on the properties of politically recognized individuals, and there has been an environment characterized by high interest rates.

Member
8
24 days ago

Due to the high population and urbanization expansion, the real estate sector’s contribution to the Gross Domestic Product (GDP) will increase to 6.5 percent in 2023. This will mark the beginning of an upward trend.

Member
8
24 days ago

as a result of the Central Bank of Nigeria’s (CBN) decision to alter the color of naira notes and the maximum cash withdrawal regulation,

Member
8
24 days ago

Diaspora Both Nigerians and those investing from outside the country will be interested in the real estate market.

Member
9
24 days ago

Real estate is the new thing in the country as business that brings in lots of financial increment,and ita growth rate is quite impressive and our government need policies that would have with the building for affordable housing.

Member
8
24 days ago

Before the national elections in 2023, political leaders would discover answers to the nation’s difficult problems with safety and security.

Member
8
24 days ago

Regards the experts, there has been an increase in the cost of building materials, there have been forfeiture orders placed on the properties of politically recognized individuals, and there has been an environment characterized by high interest rates.

Member
8
24 days ago

The real estate industry will promote more growth than last year more grow in the industry will serve as good thing for the country building material need to be afford to get

Member
9
24 days ago

Real estate ‘23 outlook is bright – analysts. They have done well. I believe that they will do more better in

Member
8
24 days ago

Our government needs legislation that will help with the construction of affordable housing because the real estate industry generates significant financial growth at an amazing rate.

Abusi
Member
8
23 days ago

I can only hope the real estate can be well managed and controlled this year. It is okay that it is lucrative sector, but still it should be controlled and well regulated to prevent inflation of cost of houses. If not, a lot of people are going to be homeless.

Member
8
23 days ago

Investor trust in the company increased due to the housing initiatives introduced in the third and fourth quarters of the previous year.

Member
8
23 days ago

As a rapidly expanding industry with significant potential for monetary gain, the real estate sector urgently requires new government regulations to facilitate the construction of reasonably priced homes.

Member
8
23 days ago

Regardless matter whatever party wins the upcoming elections, analysts predict that the real estate market will perform well overall.

Member
8
23 days ago

With the way things will be this year 2023 Real Estate from expert analysis there be substantiable growth in this sector that will contribute to the GDP of this country call Nigeria. For those who wants go into real estate here is an opportunity to make maximum profit.

Member
8
23 days ago

Real estate is a relatively new industry that generates significant financial growth. Our government has to adopt regulations that would encourage the construction of affordable housing.

Member
8
23 days ago

From the experts analysis it is very possible that Real Estate will experience a sustainable growth in this year 2023 which will contribute to the GDP of the nation.The real estate is truly bright.

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