Professionals see real estate sector growth on urban renewal, tax reform

Professionals in the real estate sector in Nigeria say there is prospect for growth in the real estate sector in Nigeria if the government embarks on urban renewal and expansion, adding that the government needs to invest in infrastructure and introduce tax reforms as further growth drivers for the sector.

The professionals spoke at a conference on Real Estate Outlook 2024 organized by the Nigerian chapter of International Real Estate Federation (FIABCI-Nigeria) in collaboration with the Nigerian-British Chamber of Commerce in Lagos recently with the theme, ‘Looking Ahead: Gauging Opportunities.
According to the organizers, the event was a pivotal moment for stakeholders in the industry. Gladstone Opara, president of FIABCI Nigeria, expressed hope in the event’s outcomes, saying, “this is actually an improvement on the very successful real estate outlook of 2023. The attendance today was exceptional, and the speakers’ attention to the needs of our business was evident.

Opara emphasised the need for government’s intervention in providing policies that support urban renewal efforts. “The government must play a proactive role in revitalising areas such as slums, by providing necessary infrastructure and support for development,” he explained.
Urban renewal not only involves horizontal expansion but also vertical development,” Opara said, outlining the significance of going vertical in order to optimise land use and create more affordable housing options.
By building upwards, we can conserve green spaces and accommodate the growing population more efficiently,” he noted.

Tax policies emerged as another critical topic of discussion, with participants highlighting the need for tax relief and fair implementation.
The current tax regime stifles businesses and inhibits growth,” Opara said. He called for a more balanced approach to taxation, suggesting that the government should consider reducing or removing tariffs to stimulate economic activity.
In addition, there were concerns raised about the complexity of tax structures and their impact on future investments.
The president warned against excessive taxation, saying, “taxing multiple aspects, such as property, products, and movements, without providing adequate infrastructure, hampers development.”

He urged for a transparent and efficient tax management system to ensure equitable distribution and utilisation of funds.
The 2024 Real Estate Outlook served as a platform for constructive dialogue and collaboration among industry stakeholders.

Opara expressed his confidence in the sector’s ability to overcome challenges and achieve sustainable growth with the right policies and strategies in place.

“By prioritising urban renewal and implementing fair tax policies, we can unlock the full potential of Nigeria’s real estate market,” he said.