Note: Construction, Real estate and GDP Growth rates were derived courtesy of National Bureau of Statistics published data as part of its reports covering the period of Q1 2016 – Q3 2020.Real estate sector contracted by -13.40% in Q3 2020: The economy of Nigeria shrank -3.6% in the third quarter of 2020, following a -6.1% plunge in Q2 2020 while Real Estate growth recorded in Q3 2020 stood at -13.40%, higher relative to Q2 2020 by 8.59% points. While construction recorded a growth of 2.84% from -31.77% recorded in Q2 2020.
Cement Price Volatility: Hopes of lower construction costs by prospective homeowners may have been dashed, going by fresh increase in price of cement and related products. The increase has already triggered ripple effect in the open market, where prices have gone up by as much as 60% in recent weeks. The rising prices have also worsened construction costs in a sector, reeling under pressure from disruptive policies and ineffective housing supply. Distributors hinted that there was increase of ex-factory prices due to economic realities, which prompted many dealers to change prices. For instance, Dangote Cement increased its ex-factory price to N3,050 due to logistics and production cost.
FGN Targets 1.8m Jobs Through Construction of 300,000 Homes: As part of efforts to create over a million jobs and ensure Nigerians benefit from the 300,000 housing units in line with the National Economic Sustainability Plan (ESP), the Federal Government has concluded a plan to provide mortgage guarantees to low-income earners.