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Over reliance on oil sector has been one of the major challenges confronting the Nigeria economy. There have been series of debates on diversifications because a monocultural economy is considered a threat to economic stability and development.Among different sectors with economic viability is the Real Estate Sector. 

In the recent time, Nigeria economy's growth and development have been greatly influenced by the real estate industry, which is substantially contributing to the country's economic performance. However, the sector's potential has been constrained by a number of difficulties which this article seeks to address. 

The real estate sector is an important contributor to the Nigerian economy. It provides employment opportunities, generates revenue for the government, and contributes to the development of infrastructure. The sector is also a significant contributor to the country's gross domestic product (GDP).

The Nigerian economy is significantly influenced by the real estate industry. It creates job possibilities, brings in money for the government, and helps with infrastructure building. Additionally, the sector makes a sizable contribution to the GDP of the nation.

Despite the sector's importance, there are a number of obstacles that prevent it from expanding and developing. Several of these difficulties include:

1. Limited Access to Finance: In Nigeria, the real estate industry faces significant financial difficulties. Real estate developers have a hard time getting loans from financial organizations because of the high cost of borrowing and the strict lending requirements.

2. Poor Infrastructure: It is challenging for real estate developers to develop properties in some places due to a lack of suitable infrastructure, such as good road networks, electricity, and water supply.

3. Inefficient/Ineffective Land Administration: Purchasing land in Nigeria is a difficult and drawn-out procedure. Due to the difficulty in acquiring land for their projects, real estate developers face delays and higher expenditures.

4. High Cost of Construction Materials: One of the biggest problems Nigeria's real estate industry is facing is the high cost of construction materials. This makes it difficult for developers to build affordable housing units.

The government and other stakeholders must put the following suggestions into practice in order to overcome the issues the Nigerian real estate market is now facing:

1. Expand Financial Access: The government should establish regulations that will induce banks to offer real estate developers low-interest loans. This will widen financial access and lower borrowing costs.

2. Improve Infrastructure: To make it simpler for developers to develop properties in specific locations, the government should invest in the development of infrastructure, such as good road networks, electricity, and water supply.

3. Streamline Land Administration: In order to make it quicker and easier for real estate developers to acquire land for their projects, the government should ensure that the process for acquiring land in Nigeria should be streamlined, yet strictly followed.

4. Encourage Local Production of Building Materials: To lower the cost of building materials, the government should support local production of building materials.

In 2018, the US's economic output from real estate building was $1.15 trillion. That equates to 6.2% of the the country's GDP. Although it is higher than the $1.13 trillion in 2017, it is still behind the $1.19 trillion peak of 2006. Construction of real estate accounted for a sizable 8.9% of GDP at that time.

The UAE's real estate sector contributes roughly 5.5% of the nation's GDP, and it has been on the rise since 2022 as both rental rates and home prices have increased. Furthermore, 8.2% of the gross domestic product in the emirate of Dubai is accounted for by the real estate sector. Additionally, it is a significant source of employment for the foreign workers. The emirate of Dubai has drawn interest from real estate investors due to its emphasis on being a top-tier tourist destination.

Thanks to the state's recent investments in real estate around the country, Zamfara State's Internally Generated Revenue (IGR) has increased by N10 billion.

Nigeria's economy has the ability to grow and thrive, if other economy booster like the real estate market can be explored. Though, the industry faces a number of difficulties that impede its expansion and advancement especially in rural communities. However, to overcome these obstacles, the government and other interested parties must put policies into place that will expand financial access, enhance infrastructure, simplify land management, and encourage homegrown construction material production. By achieving this, Nigeria's real estate industry may realize its full potential and make a substantial contribution to the economic development and expansion of the nation.

Samuel OGUNDIPE

Business Development Associate,

Realty Corridor, Asokoro Abuja.

08107199666

www.realtycorridor.com