Growth target hinged on infrastructure investment
Despite the current economic downturns, future growth could be guaranteed, if government effectively implements a combination of factors that will boost the real estate sector.
Such factors according to the Managing Director of Propertygate Development and Investment PLC, Mr. Adetokunbo Ajayi include; diversification of the economy, blocking leakages, improved efficiency and ease of doing business, population strength of the country and its growth rate as well as increase in the flow of foreign and local capital, for investors to return to the sector.
Speaking at the 8th Annual General meeting of the company in Lagos, he said massive expansion in infrastructure by government, the readiness of operators in the sector to leverage on the much awaited government investment and need for real estate products and services, which remains very huge are critical issues that will boost the sector.
According to him, the company believes that the huge potentials of the Nigerian economy and the vast opportunities in the sector remain strong. He said the company, in demonstration of its commitment, will continue its development and investment activities in residential and commercial properties, in addition to other opportunities it intends to leverage on within its strategic plan.
“The economic challenges of the year 2016 included inflation at record high 18.71per cent, drastic fall in national revenue, acute scarcity in Forex market, badly weakened naira, decline in foreign and local investment, high interest rate, and atmosphere of uncertainty. The real estate sector’s contribution to GDP declined compared to the preceding year. Lending to the sector dropped and those brave enough to lend, did so at very high rates”, he stated.
Ajayi pointed out that the forecast for 2017 for national economies and the real estate are positive. He said the IMF revised its 2017 forecast for Nigeria, as it predicts a positive growth for the economy while positive indicators in the year so far are all pointing to economic recovery.
Further to its commitment to give back to the community, he disclosed that the company completed the construction of a 372-meter long road, which it began in 2015 within the year under review. He expressed appreciation to its critical stakeholders whose contributions helped it ended the year on a positive note.
In their contributions, some of the company’s Directors, Mr. Peter Folikwe and Wole Ogungbola said the company has remained resilient despite the prevailing economic challenges in the country as it affects the sector attributing the feat to visionary leadership of the Board and Management team.