- Nigeria to become one of the leading economies in the next 15 years.
- Real estate only makes up 7.41% of the GDP in Nigeria vs 22% in South Africa and over 70% in France & the U.K.
- With a housing gap of 20 million homes, this represents over $300 Billion in opportunity (very conservative figure).
If there was ever any lingering doubt that Nigerian growth was a blip on the world stage, it is long gone. The Nigerian economy is a powerful force that is here to stay, and business leaders and investors worldwide are taking note. Currently Africa’s largest economy, Nigeria is on track to become one of the world’s leading economies in the next 15 years. Nigerians everywhere can share pride in the meteoric development of our country.
There is always work to be done, however, to turn that bright future into reality. A new report from the McKinsey Global Institute details how our country can fulfill its economic promise and make economic growth increasingly inclusive so that more and more Nigerians can benefit from the new and growing opportunities. The key? Real estate.
Our country is perfectly poised for an explosion of growth in the real estate sector for a few simple reasons. First, Nigeria is experiencing rapid urbanization, with just about 50% of the population currently living in cities. Second, the population is young, and only getting younger. The growing middle class and the increasing consumption that goes along with it all mean that the Nigerian real estate sector has huge potential to boost GDP and create millions of jobs for Nigerians.
Indeed, the real estate sector is already growing rapidly at a rate of 8.7 percent – faster than the growth of the average GDP and far outpacing Nigeria’s own GDP growth. In a 2015 report from PricewaterhouseCoopers, Nigeria’s real estate investment is expected to rise by 49 percent, from $9.16 billion last year to $13.65 billion this year. While the economy has experienced a dip in the months following this report, the overall trend of Nigerian real estate remains promising.