PricewaterCoopers (PwC) has projected the contribution of real estate to the country’s Gross Domestic Product (GDP) to grow by almost N3 trillion in 2016.
The accounting firm however said this is dependent on the right environment, which include adherence to global best practices in the sector, transparency and timely delivery on project execution, among others. The sector currently contributes about N1.8 trillion to the GDP.
“Going by PWC revelation and the quest to meet the vision 2020 target, a lot needs to be done towards improved public infrastructure to drive the required positive change in the real estate and facilities management industry, in addition to improving the living condition of the average Nigerian.
For the facilities management and real estate sectors to contribute meaningfully to the economy, practitioners must embrace global standards and best practices in the execution of projects,” Femi Akintunde, Managing Director, Alpha Mead Facilities and Management Services Limited, said in response to the projection.
Former Attorney-General and Commissioner for Justice in Lagos State, Supo Shasore, said the facilities management industry was positioned for growth. He described as regrettable, the country’s 134th ranking out of 144 economies by the World Economic Forum Global Competitiveness Report 2014-15.
“The country’s core infrastructure stock is estimated at only 35-40% of GDP, in contrast to international benchmarks of 70% of GDP.
This low value has been driven by historically low public and private spending on infrastructure,” Shasore said.