Real estate sector's GDP grows by 10.84% in Q1 2022

The Gross Domestic Product (GDP) of the Real Estate Services (nominal terms) has increased by 10.84% in the first quarter of 2022. It is higher by 2.79% points than the growth rate recorded within the same period in 2021.

This was disclosed by the National Bureau of Statistics (NBS) GDP report Q1 2022 on Monday.

According to the report, the growth is higher by 7.35% points compared to the preceding quarter. Quarter-on-Quarter, the sector growth rate was -22,62%.

Key highlights

In nominal terms, Real Estate Services in the first quarter of 2022 grew by 10.84%, higher by 2.79% points than the growth rate reported for the same period in 2021 and higher by 7.35% points compared to the preceding quarter. Quarter-on-Quarter, the sector growth rate was -22,62%.
The contribution to nominal GDP in Q1 2022 stood at 4.92% as against 5.03% recorded in the first quarter of 2021 and lower than the 5.85% accounted in the fourth quarter of 2021.
Real GDP growth recorded in the sector for the first quarter of 2022 stood at 4.44%, higher than
the growth recorded in the first quarter of 2021 by 2.67% points, and higher by 2.96% points relative to Q4 2021. Quarter-on-quarter, the sector grew by -26.75% in the first quarter of 2022.
It contributed 5.34% to real GDP in Q1 2022, higher than the 5.28% it recorded in the corresponding
quarter of 2021.”

What you should know

According to the Q4 and full-year 2020 GDP data released by the NBS, the sector returned to positive growth of 2.81% y/y in Q4 2020 following six consecutive quarters of negative growth since the last positive growth posted in Q1 2019 (0.93% y/y).
The significant recovery in Q4 2020 reflects the full reopening of the economy as many residential and commercial projects began operations fully following the suspension of activities during the national lockdown.
Overall, the real estate GDP FY 2020 contracted by 9.22% y/y which was well below our 2020 estimate of a 13.7% contraction.

The real estate sector like many other sectors of the economy suffers deeply from a dip in macroeconomic conditions of the country. In 2016, when the economy went into recession, the sector declined by 6.86% compared with the growth of 2.11% recorded in 2015.