(Ecofin Agency) - Nigeria’s real estate sector is expected to an average rate of 5.39% from 2017 to 2020, against a decline in 2016. This was revealed by Cromwell Professional Services International (PSI), in its Real Estate Industry Outlook 2017 report.

According to the firm, the forecast is subject to an increase in private and public investments, agricultural revolution, favorable oil prices, increase in oil output and a capable political leadership, amongst others. The report noted that in 2015-16, the real estate market was less performant due to the country's macro-economic and socio-political challenges. Challenges that resulted in the suspension of some planned real estate development projects, slowdown in the growth of rents as well as inflation of construction materials and labour costs.

According to Sola Enitan, the Country leader of Cromwell (PSI), Nigeria continues to be a major driver of growth for the real estate industry, due to the country’s population which is currently estimated at over 180 million and its annual average growth rate of 3%. Other factors favoring real estate’s growth include rising urbanization, increasing investment from local participants such as for Pension Funds and Mutual funds and targeted interventions by the Federal Government in the housing finance sector, amongst others.

Enitan explained that if new bills such as the Infrastructure Development Bill and other bills pending in the national assembly are successfully passed into law this year, they will positively impact the real estate industry.

Anita Fatunji