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Abstract
This study investigates the impact of real estate financing on economic growth in Nigeria, by analyzing its effects on Nigeria's Gross Domestic Product (GDP). Specifically, the study aims to evaluate the contribution of FDI, mortgage financing, and commercial real estate loans to the nation’s economic performance, providing actionable insights for policymakers and stakeholders. A longitudinal, ex-post facto research design was adopted, utilizing panel data from 2014 to 2023. Data were sourced from the Central Bank of Nigeria (CBN), the National Bureau of Statistics
(NBS), and reports from financial institutions and real estate firms. Panel data analysis was employed to capture both cross-sectional and time-specific effects, ensuring a robust assessment of the relationships between the variables. The findings reveal that all three dimensions of real estate financing significantly contribute to Nigeria's economic growth. FDI in real estate fosters capital inflow, infrastructure development, and job creation. Mortgage financing enhances housing accessibility and stimulates economic activity in the construction and housing sectors. Commercial real estate loans enable business expansion, infrastructure development, and increased urbanization, further boosting GDP. Based on these findings, the study recommends that the Nigerian government create a conducive environment for FDI by simplifying regulatory processes, ensuring macroeconomic stability, and offering investment incentives. Policies should also focus on improving access to affordable mortgage financing through innovative financing models, reduced interest rates, and expanded credit availability. Additionally, financial institutions should be incentivized to provide more commercial real estate loans by reducing associated risks and offering tax benefits for such lending
(NBS), and reports from financial institutions and real estate firms. Panel data analysis was employed to capture both cross-sectional and time-specific effects, ensuring a robust assessment of the relationships between the variables. The findings reveal that all three dimensions of real estate financing significantly contribute to Nigeria's economic growth. FDI in real estate fosters capital inflow, infrastructure development, and job creation. Mortgage financing enhances housing accessibility and stimulates economic activity in the construction and housing sectors. Commercial real estate loans enable business expansion, infrastructure development, and increased urbanization, further boosting GDP. Based on these findings, the study recommends that the Nigerian government create a conducive environment for FDI by simplifying regulatory processes, ensuring macroeconomic stability, and offering investment incentives. Policies should also focus on improving access to affordable mortgage financing through innovative financing models, reduced interest rates, and expanded credit availability. Additionally, financial institutions should be incentivized to provide more commercial real estate loans by reducing associated risks and offering tax benefits for such lending
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