The recent rebasing of Nigeria’s Gross Domestic Product (GDP) has revealed the substantial contribution of the real estate sector, now valued at a staggering N41.3 trillion in 2024. This positions real estate as the third largest sector in the Nigerian economy, trailing only trade and crop production, and significantly ahead of telecommunications, construction, and even the crude petroleum and natural gas sector. This upward revision, from a previous valuation of N10.5 trillion in 2023 before the rebasing exercise, highlights the sector’s rapid growth and increasing influence on the nation’s economic landscape. The revised figure for 2023 stands at N30.7 trillion, demonstrating a remarkable N20.2 trillion increase, further underscoring the sector’s dynamism. The National Bureau of Statistics (NBS) attributes this surge to improved methodologies in asset valuation, increased formalization of property-related services, and rapid urbanization across the country.
Stakeholders have lauded this development, recognizing the real estate sector’s potential to drive economic growth. Toye Eniola, Executive Secretary of the Association of Housing Corporations of Nigeria, described it as a “cheering development,” emphasizing the sector’s capacity to bolster the Nigerian economy if adequately supported on both the demand and supply sides. This sentiment underscores the significant role real estate plays not only in GDP contribution but also in employment generation and overall economic stimulation. The rebasing exercise provides a more accurate reflection of the sector’s true economic weight, paving the way for more informed policy decisions and targeted investments to maximize its potential.
Real estate consultant, Jimi Peter, further emphasized the significance of this rebasing, highlighting the intricate network of value chains within the sector. He explained how each stage of the real estate process, from land acquisition to property management, generates employment and economic activity. From architects and engineers to builders, brokers, and facility managers, the sector supports a diverse range of professions. Peter also pointed out the cultural significance of homeownership in Nigeria, where owning property is viewed as a symbol of financial stability and success. This cultural driver, combined with the country’s rapidly growing population, fuels a constant demand for housing, further stimulating the real estate ecosystem.
This inherent demand, according to Peter, creates a multiplier effect on the economy. As the population grows and the need for housing increases, the demand for professionals and artisans within the sector rises correspondingly. This ripple effect contributes significantly to employment and wealth creation. The rebasing exercise, therefore, not only reveals the true economic weight of the real estate sector but also underscores its potential for sustained growth and its crucial role in driving the Nigerian economy forward. The revised figures provide a more accurate representation of the sector’s contribution, enabling policymakers and investors to make more informed decisions to further stimulate its growth and maximize its potential.
The rebasing exercise also highlights the importance of accurate data collection and analysis in understanding the dynamics of the Nigerian economy. By capturing a more comprehensive picture of the real estate sector’s activities, including the formalization of property-related services, the rebasing provides valuable insights into the sector’s growth drivers. This improved understanding is essential for developing effective policies and strategies to support sustainable development within the sector. Moreover, the rebasing emphasizes the need for continuous monitoring and evaluation to ensure that the sector’s contribution to the economy is accurately reflected.
In conclusion, the rebasing of Nigeria’s GDP has unveiled the significant contribution of the real estate sector, now recognized as a major driver of economic growth. The increased valuation reflects the sector’s multifaceted impact, from generating employment across diverse professions to stimulating economic activity through its intricate value chains. The cultural importance of homeownership in Nigeria, coupled with a growing population, further fuels demand within the sector, creating a ripple effect throughout the economy. This recognition, backed by accurate data, empowers policymakers and investors to make informed decisions, fostering sustainable growth and maximizing the sector’s potential for driving Nigeria’s economic prosperity.
