By Omodele Adigun
Nigeria’s economic climate has discouraged investors in the real estate market. And surviving in the industry is tough and requires more than street-smartness, determination and knowledge.
These are the views of the enterprising trio in the nation’s urban real estate, featured in the current edition of Forbes Magazine.
The trio are 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 businessmen, all in their 40s, have perfected the skill of going against the grain by investing in risky areas and remaining faithful, spurred on by their belief and passion for beautiful cityscapes and their marketing abilities that enable them to transform jungles into bespoke residential areas that attract premium A-list patronage.
Mba told the publication that investment in the real estate sector in Nigeria is a business for the thick-skinned.
He stated: “The Nigerian environment is tough for business and it is toughest for those whose business is to provide decent and comfortable living homes. Our economy has been going through difficult cycles that seem unending, making it increasingly tough for people to spare the cash to invest in extra-comfortable homes.
“People are mostly thinking of surviving on the basic things; they have to feed themselves and their families, and acquire basic accommodation before considering making plans for luxury living. It is that difficult for most people”.
Osuala, on his part, believes that one needs something extra to play in the market. “You need to understand the psychology of consumption and you also need a heart large enough to accommodate the vicissitudes of the economic redistribution of income. If you do not have any of these and more, you are an unwelcome player in the sector.”
Reinforcing this view, Igboanugo says Nigeria’s economic climate has discouraged investors in the real estate market. He’s convinced that, had the country been economically stable, urban real estate would be booming.
“Some of us have remained in business because we have found ourselves in it and do not have other options than to remain. This is an industry with massive potential, but it has been hampered by the macro Nigerian economy. We appear to be the most directly impacted by adverse economic situations.
“People can only invest in homes when they have extra to spare from their disposable income. But these days, most households find it hard to save enough money to meet their basic family needs. Even when they want to invest in homes, urban luxury homes will very likely not appear in their table of preference,” says Igboanugo.
Despite the challenges, Forbes sees the Nigerian real estate market as huge with unrivalled potential. With Lagos, the country’s commercial capital, still opening up and areas such as Lekki, Abuja, Port Harcourt and the state capitals showing attractive opportunities, there are rewards for those with staying power.
The magazine states: “Despite the debilitating challenges the Nigerian currency has faced over the years against major global currencies, 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.”