Weakened naira, multiple taxation mar real estate’s growth - THE GUARDIAN
By Gloria Nwafor
Poor infrastructure, a weakening currency and multiple taxations have been identified as challenges preventing the country’s real estate sector from operating at optimal level.
Chief Consultant, B. Adedipe Associates Limited, Dr Biodun Adedipe, quoting Statista, said the sector is estimated to grow to $2.26 trillion in 2024. He spoke yesterday, at Real Estate Outlook 2024 organised by the Nigerian-British Chamber of Commerce (NBCC) in collaboration with FIABCI Nigeria, the International Real Estate Federation.
Adedipe said Nigeria needed to stabilise the sector for growth. He said the fact that other sectors have been growing their contributions faster than real estate was a pointer that there was room for expansion.
Adedipe described housing development as a driver of investments that stimulates an economy and serves as a major source of job creation.
Giving some specifics that businesses should embark on in different quarters in the year, he said there was the need for businesses to intensify digitisation, stress test business models, assess the impact of policy shifts on assets and liabilities.
To recover and grow, he urged organisations in the sector to develop a new strategic plans with aggressive execution.
He urged businesses should they invest more in sustainability and get involved with and strengthen sector advocacy.
According to him, the future of operations management is both agile and digital.
Members, Construction and Real Estate Group, NBCC, Yomi Amoussa and Hakeem Ogunniran, said the real estate sector is misregulated.
They called for the government’s policy to drive the sector that would generate investment.
They said there is a need to look at the opportunities and fashion ways to navigate the environment and still maximise opportunities.
Ogunniran, said 2024 in the sector, was a year of regulatory intensity, where technology would take the centre stage.
According to him, as players, due diligence and compliance should be adhered to.
On funding, he added that it was still a challenge, calling for crowd and innovative funding.