Real Estate GDP Contribution Surges To N41.3tn

The real estate sector’s valuation and contribution to Gross Domestic Product (GDP) has climbed to N41.3tn, highlighting its rising contribution to the nation’s economy, according to data from the National Bureau of Statistics (NBS).

This contribution of Nigeria’s real estate sector to the economy surged to N41.3tn in 2024, making it the country’s third-largest economic sector, behind only trade and crop production.

Latest rebased Gross Domestic Product figures released by the NBS shows a significant upward revision of the sector’s economic value.

According to the data, before the rebasing, the sector was valued at N10.5tn in 2023. With improved methodologies and updated data capturing, the figure was revised to N30.7tn for the same year, representing a N20.2tn jump.

It further climbed to N41.3tn in 2024, underscoring the rapid expansion and growing influence of real estate in Nigeria’s economic structure.

The new data positions the real estate sector ahead of telecommunications (N23tn), construction (N13.8tn), and crude petroleum & natural gas (N13.1tn) as of 2023, highlighting its rising dominance in the non-oil economy.

According to NBS, the surge in value is driven by better valuation of assets and increased formalisation of property-related services such as rentals, broking, and land valuation, as well as the effects of rapid urbanisation across the country.

This development has received commendation from stakeholders of the real estate environment.

A real estate consultant, Jimi Peter, in reacting to this devepment, noted that the recent rebasing, which pushed Nigeria’s real estate sector GDP contribution to N41.3 trn should have been captured before now.

“This rebasing should have been captured long before now. However, as is often the case with rebasing exercises, for the data to be accurate and reliable, it requires time and a thorough consideration of multiple factors.

“If you look at the real estate industry in Nigeria, it’s clear that the sector comprises numerous value chains. It generates employment at virtually every level. Before a house can even be built, land must be acquired, usually from an individual or family.

“Then, professionals such as architects are engaged to produce designs, followed by structural engineers who supervise the integrity of the building process. These engineers in turn employ builders, plumbers, electricians, and various artisans, all of whom play integral roles.

“After construction, if you are a developer intending to sell, brokers and real estate agents, also known as realtors, become involved in marketing and selling the property.

“Once the sale is made, the new owner may choose to hold the property, resell it, or rent it out, again generating income for letting agents or facility managers.

“At every stage, someone is earning. In Nigeria, there’s a strong cultural value attached to land and homeownership. Owning property is widely seen as a benchmark of financial stability and success.

“Unlike in some advanced countries, where even wealthy individuals might choose to live in rented apartments, here in Nigeria, owning a home is almost a necessity. It’s a social marker. So, as long as people can afford to build or buy, they will pursue it”, he said.

By: Corlins Walter