Firm projects 25% real estate growth in 2023- 2024
LAGOS- based property development firm, Octo5 Holdings Limited has projected a 25 per cent growth in the real estate sector within the period 2023 to 2024.
The firm revealed this in its 2023 economic review and real estate outlook, highlighting the significant contribution of the real estate and construction industry to Nigeria's economic growth.
The report also anticipates restructuring and consolidation of agencies like the Federal Housing Authority, Federal Mortgage Refinance Corporation, Federal Mortgage Bank of Nigeria and Family Homes Fund, which will promote housing development and ease home ownership for Nigeria’s workforce.
The outlook provides insight into Nigeria's global economic outlook, highlighting the challenges posed by the country's reliance on imported finished products, which the global energy crisis has further exacerbated.
The real estate and construction sectors contributed over N28 trillion to National Gross Domestic Product ( GDP) in 2022. Specifically, the real estate sector earned N10.2 trillion, while the construction sector contributed N18.6 trillion within the same year.
Following the growth trajectory, the firm also projected increased public construction and employment stimulus packages with incentives for development of new urban nodes across the country.
“Our projected major growth hubs for 2023 are Lagos, Lagos/ lbadan
Expressway, Port Harcourt, Uyo, Kaduna and Kano for residential developments. We project Oyo, Ebonyi, Benue, Kebbi, Anambra and Ogun as hubs for increased agro- tech and mechanised industrial hubs.
Demand for affordable housing in serviced communities priced between N10 to N40 million will remain high, while undersupply remains a huge barrier,” it revealed.
The Chief Executive Officer, Octo5, Mr. Babajide Odusolu, said: "Considering Nigeria's strong fundamentals and large market, an economic correction is inevitable, although it may come with initial challenges. The increasing densification of Abuja will continue and project increased activities around the Mpape, Life Camp, Fish market, Maitama II and Lugbe axis of Abuja.