ABUJA — GOVERNOR Babajide Sanwo-Olu of Lagos State has hinted that his administration is aiming at increasing the Gross Domestic Product, GDP contribution from the real estate sector 5-6 per cent to 15-20 per cent.
This is as the President of the Nigerian Institution of Estate Surveyors and Valuers, ESV Victor Alonge, on Monday said that the potential of the real estate sector as a catalyst of economic growth in the country remains largely untapped
Speaking at the inauguration of Alonge as the 26th President and Chairman of Council of the NIESV, at the Banquet Hall, Presidential Villa, Abuja, Sanwo-Olu urged the institution to work together to take the real estate profession to the next level.
According to him, "We all have a role to play in taking this profession to the next level. I urge you to support and encourage your membership, recognising that we're all on the same team.
"Our land use charge, though low, has attracted real estate investments and fees. We aim to increase our GDP contribution from 5-6 per cent to 15-20 per cent from the real estate."
In his welcome address, Alonge lamented that the poor state of the real estate sector in Nigeria has continually stifled its capacity to optimally contribute to national economic growth.
He expressed readiness to partner with the government by offering expertise, resources, and support that can enhance the success and impact of the various development efforts of government.
The 26th President and Chairman of Council of the NIESV, noted that real estate remains the most priced and valuable assets all over the world, adding that data obtained from Savills World Research (2023), put the total value of the global real estate assets at US$379.7 trillion at the end of 2022.
According to him, "Real estate remains the most priced and valuable assets all over the world. According to data obtained from Savills World Research (2023), the total value of the global real estate assets is estimated at US$379.7 Trillion at the end of 2022. This outpaced the combined value of global equity and bond assets estimated at $264 Trillion.
"Real estate is also thrice as valuable as the total value of proven global oil reserves and represents about four times the value of global GDP. According to the data released by the National Bureau of Statistics, the Nigerian real estate sector contribution to the national GDP stands at about 6.87% in 2023. Contrastingly, the real estate sector contributes about 15% to the national economy in Indonesia, a developing and emerging economy like Nigeria.
"More so, in South Africa, the contribution of the real estate sector to national economy is estimated as 11.4% in 2023. The poor state of the real estate sector in Nigeria continually stifles its capacity to optimally contribute to national economic growth.
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"Impliedly, the potential of the real estate sector as a catalyst of economic growth remains largely untapped in the country. Our Institution will, therefore, step up our support and collaboration with the Government, especially, in the areas of policy formulation and implementation, Land administration, Asset valuation and management, Housing, Project and Infrastructure development among others, to improve real estate sector's contribution to our economic development.
"We are ready to be valuable ally to Government by offering our expertise, resources, and support that can enhance the success and impact of the various development efforts of Government. This is our promise," he said.
