Experts, investors, professionals and other stakeholders in the real estate sector have said that the growth of this sector, which is considered critical to the growth of the economy, is dependent on infrastructure development and sustainable financing, noting that the sector’s contribution to national GDP estimated at 7 percent is too low given its enormous potential.
The stakeholders who spoke at the just concluded Real Estate Unite Conference organized by 3Invest Limited in Lagos, noted that contrary to expectation that rising urbanisation rate which has increased from 10 percent in 1950 to 50 percent would improve the fortunes of the sector, lack of sustainable funding and infrastructure development has slowed its growth.
In his keynote address at the conference, Governor Babatunde Fashola of Lagos State, highlighted approaches that could bring about sustainable financing for the sector, citing the Lagos Home Ownership Mortgage Scheme (LagosHOMS) and how that scheme underpins his administration’s ability to create a sustainable financing mechanism that could provide affordable homes for the middle class.
According to him, one of the sustainable mechanisms instituted by the state to drive the scheme is the monthly savings of N500 million from the state’s internally generated revenue (IGR), revealing that as part of efforts to spur growth in the real estate sector, the state government has resolved to share the cost of providing infrastructure between itself and homeowners.
(Culled from www.businessdayonline.com)