House developers, investors opt for crowd funding to finance real estate

Amid paucity of funds and advances in technology sweeping across most industries on a global scale, operators in the Nigerian real estate sector are adopting the concept of crowdfunding, as an inevitable source of funding project.

The industry described by experts as capital intensive has overtime been badly impacted by inaccessibility to land, stifling mortgage systems, difficult land titling procedures, multiple taxes and archaic registration process as well as a general absence of the enabling environment for it to thrive.

Despite the retinue of economic woes militating against the sector, it remained the fifth biggest contributor to Africa’s largest economy with a Gross Domestic Product (GDP) of -5.92 percent as of 2017. According to the National Bureau of Statistics (NBS) in 2018, the construction sector grew by 7.66per cent in Q2 2018 from 1.54per cent in Q1 2018. Although real estate contracted by -3.88per cent in Q2 2018 from -9.40 in Q1 of the same year, it was higher than the 5.87per cent reported in the preceding quarter due to improving funding led by the private sector and government in high-end developments in some major cities.

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