According to the Managing Director/Chief Executive Officer, Federal Mortgage Bank of Nigeria (FMBN), Mr. Gimba Ya’u Kumo, the Nigerian Real Estate Market is worth N59 trillion. Here is how he calculated it quoting him;
“The total value of the real estate market in Nigeria is put at N59trillion and that is potentially six times bigger than the local stock market, which is now valued at N12 trillion. On this basis, the sector cannot be ignored.”
According to him, the figure was arrived at by multiplying the housing deficit in the country, which is estimated to be 17 million units; and N3.5 million, which is the estimated cost of a single housing unit. He expressed optimism that the deficit would be addressed.
“I am, however, optimistic that with the coming on stream of the Mortgage Utility Refinancing Company, the housing sector would experience a revival that would attract investments to the sector and boost the economy,” he added.
It’s strange that after all these years we still don’t know exactly what the Real Estate market is worth. This surely isn’t the right way to calculate it.