Building Financial Sustainability for Impact in Real Estate
Building Financial Sustainability for Impact in Real Estate Nairametrics
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Financial Sustainability and its Impact on the Real Estate Industry
Financial sustainability is a crucial factor that affects an organization’s expansion and profitability. It evaluates the viability of a resource investment to determine its likelihood of success. In order to assess risks and opportunities for growth, it is important to consider the non-financial implications and repercussions on financial sustainability in line with the Environmental, Social, and Governance (ESG) goals.
Sustainable Development Goals (SDGs)
- Goal 8: Decent Work and Economic Growth
- Goal 9: Industry, Innovation, and Infrastructure
- Goal 11: Sustainable Cities and Communities
Financial sustainability is essential for achieving economic growth across industries. It enhances corporate governance effectiveness and increases stakeholder and shareholder value.
The Nigerian Real Estate Market
The Nigerian real estate market is one of the thriving industries that has attracted attention from investors. This is due to Nigeria’s fast urbanization and population increase, which creates a demand for real estate.
The National Bureau of Statistics reports that Real Estate Services saw a nominal growth rate of 10.84% in the first quarter of 2022. This steady expansion is attributed to stakeholder interest and investment, making the market a possible foundation for financial sustainability.
Industrialization and Commercial Real Estate Strategies
Industrialization and commercial real estate strategies can contribute to the long-term national priority of stabilizing the macroenvironment. Industrialization enhances economic development and growth, attracting more investments to the real estate market. However, there needs to be a framework in place to react to consumer patterns and ensure steady financial sustainability.
Challenges and Opportunities
The real estate market occasionally experiences crises that impact both direct and indirect investments, such as inflation, foreign exchange restrictions, and lack of investor control. Despite these challenges, real estate continues to be a key platform for enhancing long-term impact and expectations.
UN Sustainable Development Goal 9
The real estate industry aligns with UN Sustainable Development Goal 9, which focuses on developing resilient infrastructure, encouraging sustainable industrialization, and fostering innovation. Financial sustainability plays a crucial role in driving innovation and recreating a housing framework that is simple, secure, and profitable.
The Future of Real Estate
The real estate industry is changing, and finding solutions to its problems requires novel approaches. Financial sustainability will continue to be a driving force behind decisions in the sector. It will enable the industry to adapt to different macroeconomic circumstances and provide investment opportunities for both residential and commercial effects.
Shola Bello is the Managing Director at Landwey, a leading and reputable real estate and property development company.
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SDGs, Targets, and Indicators
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SDG 8: Decent Work and Economic Growth
- Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
- Indicator: Nominal growth rate of the real estate services sector.
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SDG 9: Industry, Innovation, and Infrastructure
- Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
- Indicator: Financial sustainability of the real estate industry as a driver of innovation and infrastructure development.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries. | Nominal growth rate of the real estate services sector. |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all. | Financial sustainability of the real estate industry as a driver of innovation and infrastructure development. |
Analysis
The article discusses the importance of financial sustainability in the real estate industry and its connection to economic growth and infrastructure development. Based on the content, the following SDGs, targets, and indicators can be identified:
1. SDG 8: Decent Work and Economic Growth
The article highlights the role of financial sustainability in achieving economic growth. The nominal growth rate of the real estate services sector is mentioned as an indicator of economic growth. This aligns with SDG 8, which aims to promote sustained, inclusive, and sustainable economic growth.
2. SDG 9: Industry, Innovation, and Infrastructure
The article emphasizes the importance of financial sustainability in driving innovation and infrastructure development in the real estate industry. This aligns with SDG 9, which aims to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation. The financial sustainability of the real estate industry is mentioned as an indicator of progress towards this target.
Overall, the article highlights the significance of financial sustainability in the real estate industry and its contribution to economic growth and infrastructure development. The identified SDGs, targets, and indicators provide a framework for measuring progress in these areas.
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: nairametrics.com
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