Monday, April 22, 2024

Experts advocate collaboration for real estate market growth

He said that the Nigerian real estate market had struggled due to shortage of investment capital.

• February 21, 2024
Real Estate [Photo: Palton Morgan]
Real Estate [Photo: Palton Morgan]

Some experts in Nigerian real estate, on Wednesday in Lagos, called for collaboration toward harnessing huge opportunities for investments in the real estate market to drive growth, create jobs and bridge the shelter gap.

The experts made the call during the hybrid second annual Wemabod Real Estate Outlook 2024, with the theme: “Navigating Volatility in Real Estate Market: Opportunities and Threats”.

The event was organised to discuss the challenges facing the nation’s real estate market, including lack of investment capital, macroeconomic issues, high-interest rates, inflation, and the foreign exchange crisis.

Oluyemi Ejidiran, managing director/CEO of Wemabod Ltd., said that in spite of numerous challenges facing the real estate sector, it had huge untapped opportunities.

He said that the Nigerian real estate market had struggled due to shortage of investment capital, limiting growth and development.

Mr Ejidiran said there was untapped potential for domestic and foreign investors to inject capital into the market, driving growth, creating jobs, and addressing the housing shortage.

“Addressing macroeconomic issues like high-interest rates, inflation, and the foreign exchange crisis is crucial.

“By implementing sound fiscal and monetary policies and creating a favourable investment climate, we can attract investors and drive growth in the real estate market.

“While there are risks in the market, such as regulatory uncertainty and fluctuating property values, there is also potential for growth.

“Leveraging innovative financing mechanisms like real estate investment trusts and mortgage-backed securities can unlock new capital sources and expand access to affordable housing,” he said.

He said globally, the real estate industry faced challenges like economic uncertainties, regulatory changes, environmental concerns, and technological disruptions.

Mr Ejidiran added that proactiveness and vigilance could help stakeholders navigate challenges and ensure stability and growth in the real estate sector.

The keynote speaker, Biodun Adedipe, said challenges usually presented opportunities that business entities must train their minds to identify and harness.

Mr Adedipe, the founder and chief consultant of B. Adedipe Associates Ltd., said the nation’s current economic realities had made situations unpredictable and, as such, difficult for entities in the real estate value chains to make the right decisions.

He listed issues affecting the sector, including rural-urban migration, population and insecurity, foreign exchange, and inflation, among others.

He used both statistics and graphs to explain disruptions and volatility and how they affect the supply chains of inputs to housing constructions.

He said inflationary pressures and rising mortgage rates were pushing buyers’ market and stressed the need for proper exchange rate management.

He said that subsidy removal was necessary, but exchange rate unification was not the way Nigeria should have gone; as such, the federal government should retrace its steps to correct the naira’s free fall.

“When things are going wrong, we should return to the drawing board. We need to fix the exchange rate, if we continue with floating, it will float to the heavens,” he said.

Bimbo Ashiru, chairman, Odu’a Investment Company Ltd. Group, who joined virtually, called for collaboration of all Nigerians toward unlocking opportunities in the real estate sector.

Abike Dabiri-Erewa, chairperson/CEO, Nigerians in Diaspora Commission (NIDCOM), who also joined virtually, called for collaboration and consumption of local goods, services and technology.

“We all have to work together and Nigerians have to make the decision to change the nation by patronising made in Nigeria,” she said.

She said diasporans were being advised to invest in real estate, which is a profitable wealth management and storage opportunity.

She said collaboration was on with the Federal Mortgage Bank on a 6.9 per cent interest rate, which will begin in April, to encourage more diaspora investments in real estate.

Panellists and other speakers at the event called for collaboration, elimination of corruption, adoption of locally sourced building materials and partnerships as some measures for success.

The panellists included Olajumoke Akinwunmi, co-founder of Alitheia; Bode Adediji, group executive chairman, Bode Adediji Partnership; Dr Oseni Ezekiel, managing director, LEXOR Business Support Ltd.; and Lanre Olutimilehin, strategic advisor at Diya Fatimilehin & Co.

Also, awards were presented to some deserving experts for their contributions to the real estate industry growth.

(NAN)  

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