Managing Director Financial Derivative Company Ltd, Bismarck Rewane has said real estate sector will witness strong growth this year despite rising cost of building materials and fragile economic recovery.
Rewane who made this statement while reviewing the performance of the nation economy in thigh cost of building materialshe month of May and outlook for the month of June at LBS Executive Breakfast Session said spending on real estate assets to spike in the run-up to the general elections.
He said that Real estate sector growth accelerated by 4.44 per cent in the First quarter 2022, from 1.77 per cent in the same period in 2021. He said following 2.26 per cent growth in fourth quarter of 2021, there was increased centres and properties with similar functions, adding that the demand is driven by migration to e-commerce and remote.
Rewane noted that global real estate market projected to expand by 150 per cent to $85.1 trillion over the next three years while Lagos will continue to be the major driver of Nigerian real estate investment landscape.
He, however, pointed out that the prices and sales value in leading cities for land and residential apartments have risen and retail market experiencing market corrections due to climbing demand from local investors.
Making projection for the month of June this year, he said Inflation will spike to 17.5 per cent and Core and seasonal inflation will jump.
He stated that the price of diesel will reach N750 per liter while money supply growth will slow marginally and the general level of interest rates will jump by at least 200 – 300 basis points.
He expected that Oil price is likely to fall below $100per barrel as supply increases and Subsidy payments will surge again.