Connect with us

Business

Real Estate Sector Contributes N20tn To GDP

Published

on

Sharing buttons

In the first three quarters of 2022, economic activity in the construction and real estate industries contributed N20 trillion to the Gross Domestic Product of the country.

Fidel Info reports that This is according to the National Bureau of Statistics’ report on GDP.

According to the research, real estate only contributed N7 trillion to the GDP while construction services generated N12.9 trillion.

Further research showed that construction increased in nominal terms (year-over-year) by 18.92% in the third quarter of 2022, contributing 9.5% to nominal GDP, up from the quarter’s 9.26% contribution a year earlier and 7.95% contribution the previous quarter.

However, the sector experienced a decline of 28.75% points compared to the rate of 47.67% seen in the same quarter of 2021.

The national statistics authority reports that the nominal growth rate for real estate services was 9.13%, which is 0.50 percentage points higher than the growth rate reported for the same quarter in 2021 and 3.68 percentage points lower than the Quarter before.

The sector’s growth rate was 16.38% quarter over quarter. In comparison to the 5.27 percent recorded in the third quarter of 2021 and higher than the 4.95 percent accounted for in the second quarter of 2022, the contribution to nominal GDP in Q3, 2022, was 4.96 percent.

By summing up gross outputs such a total of fees, the value of work completed, commissions due for services supplied, and other incomes, the NBS determines the sector’s contribution.

It also considers intermediate consumptions such as details of the cost structure including transportation fees, operational expenditure, minor repairs and maintenance etc.

Reacting, the Chairman, Real Estate Developer Association of Nigeria, Aliyu Wamakko, stated that the contributed amount had revealed what the private sector could achieve.

He said, “When you talk about real estate, it is driven by private investors. This means for any economy to strive, the private sector must be given a platform and a level playing ground for them to perform.”

“For example, creating jobs in real estate doesn’t require an incubation period, anytime you start building a house, at least 25 persons will get a job. So, if the government want to support the economy of the country, more opportunities should be given to the private sector.”

Sharing buttons
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *