‘Nigeria’s economy discouraging investors in real estate’
Through Omodele Adigun
Nigeria Business climate has discouraged investors in the real estate market. And surviving in the industry is tough and requires more than just skill, determination and knowledge.
These are the views of the enterprising trio in the country’s urban real estate featured in the latest issue of Forbes magazine.
The trio consists of Dr. Ndubisi Charles Mba, Founder / CEO of CDV Properties and Development; Dr. Murphy Osuala, CEO, MPL Empire Homes & Construction Ltd, and Dr. Harvey Igboanugo, Founder / CEO of Ziloc Homes.
According to Forbes, these business people, all in their 40s, have perfected their ability to swim against the tide by investing in risky areas and staying true to themselves, fueled by their beliefs and passion for beautiful cityscapes and their marketing skills that make it them enable jungles to be transformed into bespoke residential areas that attract top-notch A-list customers.
Mba told the publication that investing in the real estate sector in Nigeria is a thick-skinned business.
He said, “The Nigerian environment is difficult for business and it is most difficult for those whose business is to provide decent and comfortable homes. Our economy is going through difficult cycles that seem endless, making it increasingly difficult for people to save the money to invest in extra comfortable homes.
“Most of the time people think of surviving on the basics; They must support themselves and their families and purchase basic housing before they can make plans for a luxurious life. It’s that hard for most people ”.
For their part, Osuala believe that you need something special to play in the market. “You have to understand the psychology of consumption, and you also need a heart big enough to handle the vicissitudes of economic income redistribution. If you don’t have these and more, you are an undesirable player in the industry. “
Igboanugo reiterates this view, saying that Nigeria’s economic climate has discouraged investors in the property market. He is convinced that if the country were economically stable, urban real estate would boom.
“Some of us stayed in business because we found ourselves in it and have no choice but to stay. This is an industry with enormous potential, but it has been hampered by the Nigerian macro economy. We seem to be most directly affected by adverse economic situations.
“People can only invest in homes if they have some left over from their disposable income. However, today most households find it difficult to save enough money to meet their basic family needs. Even if they want to invest in their own homes, luxury urban real estate is very likely not to appear in their preference chart, ”says Igboanugo.
Despite the challenges, Forbes sees the Nigerian real estate market as a huge with unmatched potential. As Lagos, the country’s commercial capital, is still opening up and areas like Lekki, Abuja, Port Harcourt and the state capitals offer attractive options, there are rewards for those who persevere.
The magazine said: “Despite the weakening challenges the Nigerian currency has faced against major global currencies over the years, the sector is still exciting and strong enough to attract hordes of investors.
“The truth is that investments in the Nigerian real estate sector have been decent, even though it could be better.”