Experts predict positive growth in Nigeria construction industry
Experts in the construction industry at the Real Estate Market Outlook event which held in Lagos have predicted positive growth for the sector as well as be a significant growth driver for the Nigerian economy in 2021.
A construction industry professional and Managing Director of Dutum Construction Company Limited, Temitope Runsewe, opined that with over N3.85tn budgeted for capital expenditure by the federal government for the year, spending on infrastructure would assist to drive economic growth.
Runsewe, explained that even though the coronavirus pandemic had affected economies and businesses globally, the medium to long term outlook for the industry remained positive going by the fact that the construction industry increased its contribution to Nigeria’s Gross Domestic Product from N513.6bn in Q2 2020 to N572.9bn.
He hinted that the National Bureau of Statistics had projected the construction industry to record a Compound Annual Growth Rate, (CAGR) of 16.6 per cent to reach an all-time high of N13.2tn by 2024.
According to him, this development makes it vital for players in the real estate and construction industry to utilize the attendant opportunities for growth that will be offered.
Runsewe announced that with the positive outlook of the construction industry for 2021 as well as the predicted growth in the industry, Dutum construction intends to participate and contribute towards the development of various industry segments.
Ayo Ibaru, COO, NorthCourt Real Estate, underscored the various opportunities presented to stakeholders in the industry as demand for real estate increased and cautioned that if Nigeria failed to adapt to economic realities or continued its trend of policy inconsistency, there was a great risk it would lose Foreign Direct Investment to less volatile neighbouring economies.
Ibaru emphasized on the role technology and innovation would play for the future of the industry, stressing that the adoption of virtual viewings of properties and other property tech offerings were increasing in spite of cultural concerns.
The Real Estate Market Outlook 2021 event was organized by NorthCourt Real Estate in partnership with Dutum Construction Company Limited to provide insight into the Nigeria real estate market.
The annual event assembles experts and stakeholders in the Nigerian real estate and construction industry to brainstorm on industry projections, trends, opportunities and insight into the expectations for the year.
Other speakers in attendance include CEO NorthCourt Real Estate, Tayo Odunsi; Assistant Director, Ernst & Young, Sandra Momah; CEO, Purple, Olaide Agboola and Director of Actis, Funke Okunbadejo.
