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Lagos aims to increase real estate’s GDP by 20%

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Governor Babajide Sanwo-Olu of Lagos State has revealed plans to significantly increase the contribution of the real estate sector to the state’s Gross Domestic Product (GDP) from its current 5-6 percent to a target of 15-20 percent.

Sanwo-Olu disclosed this during the inauguration of Victor Alonge as the 26th President and Chairman of Council of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), held at the Banquet Hall, Presidential Villa, Abuja.

The governor emphasised the crucial role of collaboration in elevating the real estate profession.

“We all have a role to play in taking this profession to the next level,” Sanwo-Olu stated.

“I urge you to support and encourage your membership, recognising that we’re all on the same team. Our land use charge, though low, has attracted real estate investments and fees. We aim to increase our GDP contribution from 5-6 percent to 15-20 percent from the real estate.”

In his address, Alonge highlighted the underutilized potential of the real estate sector in driving Nigeria’s economic growth. He expressed a strong commitment to partnering with the government to enhance the sector’s impact.

“The poor state of the real estate sector in Nigeria has continually stifled its capacity to optimally contribute to national economic growth,” Alonge lamented.

“Real estate remains the most prized and valuable asset all over the world. According to data from Savills World Research (2023), the total value of global real estate assets was estimated at US$379.7 trillion at the end of 2022. This outpaced the combined value of global equity and bond assets, estimated at $264 trillion.”

He further noted that real estate assets are significantly more valuable than global oil reserves and represent about four times the value of global GDP. In contrast to Nigeria’s real estate sector, which contributes approximately 6.87% to the national GDP in 2023, countries like Indonesia and South Africa see contributions of about 15% and 11.4%, respectively.

“The potential of the real estate sector as a catalyst for economic growth remains largely untapped in the country,” Alonge continued.

“Our institution will step up support and collaboration with the government in areas such as policy formulation and implementation, land administration, asset valuation and management, housing, and project and infrastructure development to improve the real estate sector’s contribution to our economic development.”

Alonge concluded by pledging NIESV’s commitment to being a valuable ally to the government, offering expertise, resources, and support to enhance the success and impact of various development efforts. “This is our promise,” he said.

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