ABSTRACT
Real estate development and financing advisory are treated specially in Chapter 12, giving their economic and social dimensions in frontier markets such as Nigeria. The real estate sector is currently the sixth-largest sector in the economy, but real estate capitalization was valued in that year at 1.2 percent of total market capitalization. Overall, the growth of the sector over the years has been driven by demographic and urbanization factors, emerging middle class, and injections of foreign and domestic capital amongst others. The fast population and urbanization growth rates in Nigeria are creating opportunities as well as challenges for the real estate market in the country, especially in major cities. Real estate development requires a huge capital outlay for land acquisition, provision of amenities, road and infrastructure development and construction of properties. The traditional sources of real estate financing include equity capital contributions by the developers, mezzanine finance by outside partners, and bank financing. Private equity financings have evolved as major partners in real estate development. Capital market–based financing includes mortgage-backed securities, bonds, REITs and listing of real estate companies on stock exchanges.
