Experts in the construction industry have predicted positive growth for the sector in 2021.
They argued that the industry would be a significant growth driver for the Nigerian economy this year at the Real Estate Market Outlook event which held in Lagos.
A construction industry expert, Temitope Runsewe, noted that with over N3.85tn budgeted for capital expenditure by the Nigerian government for the year, spending on infrastructure would help to drive economic growth.
He added that though the coronavirus pandemic had affected economies and businesses globally, the medium to long term outlook for the industry remained positive, given that the construction industry increased its contribution to Nigeria’s Gross Domestic Product to N572.9bn from N513.6bn in Q2 2020.
Runsewe who is the Managing Director of Dutum Construction Company Limited said the National Bureau of Statistics had projected the construction industry to record a Compound Annual Growth Rate of 16.6 per cent to reach an all-time high of N13.2tn by 2024.
This, he said, makes it imperative for players in the real estate and construction industry to exploit the attendant opportunities for growth that will be presented.
He said, “With the positive outlook of the construction industry for 2021 and the predicted growth in the industry, Dutum construction intends to participate and contribute towards the development of various industry segments.”
On his part, Ayo Ibaru, COO, NorthCourt Real Estate, highlighted the various opportunities presented to stakeholders in the industry as demand for real estate increased.
He, however, warned 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.
The NorthCourt boss also pointed out the role technology and innovation would play for the future of the industry, noting that the adoption of virtual viewings of properties and other property tech offerings were increasing despite cultural concerns.
The Real Estate Market Outlook 2021 event was put together by NorthCourt Real Estate in partnership with Dutum Construction Company Limited to provide insight into the Nigeria real estate market.
The annual event brings together experts and stakeholders in the Nigerian real estate and construction industry to share industry projections, trends, opportunities and insight into what to expect for the year.
Other speakers at the event include CEO NorthCourt Real Estate, Tayo Odunsi; Assistant Director, Ernst & Young, Sandra Momah; CEO, Purple, Olaide Agboola and Director of Actis, Funke Okunbadejo.