Experts Identify Areas for Growth in Nigeria's Real Estate Sector

Experts Identify Areas for Growth in Nigeria's Real Estate Sector

The Managing Director/ Chief Executive Officer, Abbey Mortgage bank, Mr. Mobolaji Adewumi, has identified investment in infrastructure as a significant step in widening the investment basket in the real estate sector.

He made this call along other experts at the first quarter Detail Commercial Solicitors Business Series held on Thursday in Lagos to identify key opportunities and growth in the Nigeria’s Real Estate Sector.

According to Adewumi, “The real estate sector in Nigeria is poised for significant growth, riding on three key drivers; peri-urban development, fractional ownership and cost-effective sustainability innovation.

"Building a bridge across a peri-urban community and a fully urban community separated by a large expanse of water could significantly reduce travel time for commuters, allowing peri-urban dwellers to live in affordable neighborhoods while maintaining their quality of life.

“People who migrate to urban areas do so because they've seen developments move to those areas. Until the infrastructure problem is sorted, we will continue to have that pressure in urban communities. When such things happen, the pressure you have on people wanting to stay in Urban centers is pretty much reduced," He stated

Speaking at the conference, the Chief Executive Officer, Mixta Africa, Mr. Deji Alli, noted that “the devaluation of the naira alongside widening inflation and interest rates has reduced earning and purchasing power putting a strain on investors ability to deploy resources into the sector hence, the need for a new approach to home ownership.

His words “Fractional ownership through crowd pulled funds will fill existing market gaps and broaden the off-taker base of real estate products and services. The income gap that arises on the back of global inflation and cost of building material puts fractional ownership of homes as a more effective choice for investors.

“This will drive home ownership in an interesting and creative way that the real estate can be financed. It will also expand the bracket of those that are participating in this market and pull from other sources into the real estate” He added.

Highlighting the importance of developers to invest in peri-urban infrastructure to make them more attractive thus shift the attention of urban dwellers towards these areas which are less priced, the Chief Executive Officer, UPDC Plc, Mr. Odunayo Ojo, explained that while the new environmental fad highlights technological innovation and highly priced gadgets in modern housing, sustainable innovation can be deployed while cutting off excess cost.

"Sustainability can be inexpensive when simple decisions like where the materials are coming from, how are they being transported to site, and the impact on the environment could make a huge difference." He stated.

On her part, Partner Designate, Detail Commercial Solicitors, Adewunmi Alade noted that “discussion is a timely one as it addresses a very topical issue in modern-day Nigeria housing. The nuggets shared by experts are valid as they prefer solutions to areas which has since needed attention.