Abstract:

This study examines the causal-relationship between financial architecture, real estate market and economic development in Nigeria. The Nigerian financial system may have performed creditably; it however remains major concern for developing Nigerian huge real estate market. Real estate phenomena, inclusive of its “green culture” and environmental planning and zoning system, may constitute a platform for achieving social and economic development objectives, such as: quality human capital, comprehensive and quality health system, increasing national productivity, serene and quality environment, balanced demography and optimal population growth, as hallmarks of the Millennium development goals (MDGs) in 2015. The aforementioned gap suggests a vacuum in the Nigerian development paradigm. Results from the study’s findings suggest that the Nigerian financial structure has impeded the development of Nigerian real estate sector, hence, has accentuated the poverty syndrome of the citizens. The study suggests financial “matching principle”, where market driven financial institutions committed to long term funding, such as the Sovereign Wealth Funds, Pension Funds, etc, invest in mortgages and real estate development; government should commit higher capital budgetary allocations for infrastructural development. Similarly, government should set up construction bank, adopt responsive macroeconomic policies that nip inflation rate, overhaul the Federal mortgage institutions; improve the peoples’ savings culture.