For a lot people within and without Nigeria, this is the country that is relies on oil through and through. Without oil we would be nothing, right? Well, you will be pleased to know that is not true, especially today. Did you know, for instance, that the Gross Domestic Product (GDP) grew by about 6.9% in the third quarter of 2013 largely because of the increased contribution of the non-oil sector?
What’s more real estate services hold a significant position in this particular sector.
That is only one reason why investing in this particular industry is a great idea, whether on individual or corporate level.
2. Debunking the Myth
• For a lot people within and without Nigeria, this
is the country that is relies on oil through and
through. Without oil we would be nothing,
right?
• Well, you will be pleased to know that is not
true, especially today.
– Did you know, for instance, that the Gross
Domestic Product (GDP) grew by about 6.9% in
the third quarter of 2013 largely because of the
increased contribution of the non-oil sector?
– What’s more real estate services hold a
significant position in this particular sector.
4. Real Estate Is Growing in
Leaps and Bounds
• Even more interesting is the fact that the low
end real estate comprising of individuals and
corporate entities are responsible for the
continuous growth witnessed in the recent
quarters.
• This is according to the National Bureau of
Statistics (NBS) that continues to churn out the
numbers religiously for us to see.
6. Demand from Different
Directions
• Firstly, Nigeria’s population is the highest in
the continent. According to UN-Habitat
Features,
– “Lagos continues to grow and by 2015 it is
envisaged to become the world’s 11th largest
urban system, with 16 million inhabitants.”
• Housing remains a problem. The opportunity
herein is tremendous.
7. According to Dr Ngozi Okonjo-Iweala, the Nigerian Finance
Minister, Nigeria’s housing deficit is estimated at 17 million
units with an additional 2 million units every year.
Investing in affordable property such as prefabricated
material is a promising venture with a ready market.
8. Foreign Investment
• Secondly, foreign investors are ever expanding
into developing countries looking for office
space and buildings to set up shop.
• So far, there is enough demand but not
enough infrastructure for retailers.
• It is a fact that is often cited in various fora
that Nigeria’s first upmarket mall was the Palm
Shopping Mall, Lekki in 2006. Many more are
needed to cater for the population and
demand.
9. NMRC
• The Nigerian Mortgage Refinance
Company (NMRC) was finally launched on
January 16th 2014, a perfect New Year’s gift to
property investors.
• It is a private-public initiative that is aimed at
lowering the funding cost for housing
developers on mortgages.
• Subsequently, this will promote the
affordability of housing to Nigerians, the
government’s priority. NMRC will provide
mortgage banks with liquidity and funds to
sustain the mortgage market.
10. The World Bank
• The World Bank’s International Development
Association injected a concessionary loan of
$300 million for NMRC’s take-off.
• Part of the program is to enable the Federal
Mortgage Bank of Nigeria (FMBN) to provide
credit facilities to people on the low income
side who could do with decent houses of their
own.
• This effect is expected to trickle down to
microfinance institutions in the grassroots.
11. Last but not Least, Good Will
• An investment in the property market not only
serves to provide housing to the able but also
creates an immense source of employment
to many Nigerians who would otherwise be
jobless.
• That is killing one bird with one stone, making
a huge difference.
12. Finally…
• After all is said and done, it does not mean
that all is smooth in the Nigerian property
market as in any other market anywhere else
in the world.
• As Dr. Ngozi Okonjo-Iweala said years ago
during a TED Talk, doing business in Africa and
in Nigeria is the way to help the continent.
There are opportunities galore for both
Nigerians and foreigners.
13. What are you waiting for?
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