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Nigerian mortgage and real estate industry is beset with a myriad of challenges that makes it practically difficult to bridge the 17 million housing deficit.
While the introduction of the Importers’ and Exporters’ Windows by the central bank and a rebound in crude oil price helped the country exist its first recession in 25 years, the economy continues to grow at a slow pace.
That means owning or buying a property a country where over 50 percent of its people live on less than $1.92 a day is a luxury, which is why mortgage banks are grasping for breath as they are unable to break even.
Other challenges inhibiting the growth of the industry includes: the land use Act and insufficient funding.
Little wonder the mortgage and real estate contribution to the economy remains abysmally poor compared to some sub-Saharan African countries.
Nigeria is yet to realize its real estate sector’s potential, considering it was only able to contribute 6.50 percent to the country’s GDP in Q3 2018 as against its 6.83 percent it contributed in the second quarter of last year, and the 5.63 percent contribution it reported in the preceding quarter.
Whereas in South Africa, the region’s most industrialized and second largest economy after Nigeria, its real estate sector contributes about 30 percent to GDP, and in the UK, the property industry contributes about 70 percent.
Amid these myriad of challenges, Infinity Mortgage Trust Bank Plc continues to thrive as evidenced by consistent earnings growth and margin expansion,while it shareholdes have rewarded in form of steady diviend payment.
For the first three months through March 2019, Infinity Mortgage Trust’s turnover increased by 60.22 percent to N344.90 million from N215.26 million the previous year. Revenues have been growing at a Compound Annual Growth Rate (CAGR) … Read More...