• Warehouse, logistics, student housing to drive increase growth in Nigeria
Government reforms, reduced rentals, and lower mortgage rates in developing countries are expected to increase industry growth in the foreseeable future. In terms of property, the commercial real estate segment is estimated to register a CAGR of 5.1per cent over the forecast period. The rising popularity of tourism owing to the increasing number of travellers seeking to unwind, while enjoying luxury amenities such as hotels are expected to drive the growth of the segment.
The rental type was valued at $1.92 trillion in 2021 and is expected to reach $3.04 trillion by 2030, owing to the higher spending of the Gen Z generation on rental real estate. Gen Z is the next generation of renters after the millennials and they are predicted to spend more than any other generation on rental services in their lifetime.
“We expect growth based on the following factors- encouraging production and use of local building materials that will create affordability, enabling business environment that will guarantee increased Foreign Direct Investment and in turn drive the real estate market growth. A property developer and Managing Director, NISH Affordable Housing Limited, Mr. Yemi Adelakun, said factors enumerated by the report that will enhance global real estate market size are applicable to Nigeria, especially government reforms, lower mortgage rates and urbanisation.