Can this mean better days ahead for the Nigerian residential building industry? We certainly hope so.
If going by what experts in the estate development sector is telling us, Nigeria is to experience an exponential growth through funding by offshore and local investors.
An inflow of capital is crucial if the industry is to survive.
In comparison to regions that consider housing development a crucial part of human requirements, Nigeria is yet to embrace this positive attitude towards helping to ease the housing problems facing the generality of the people.
Do we really care for advancement for the people? It’s almost as if the masses don’t really exist nor have any say in the matter.
Though we may argue that many developed economies possess asset values that are quite robust which in turn makes real estate development an attractive venture, nonetheless, they too could have decided to be lackadaisical about their housing issues and pay more attention to politics, white elephant projects, corrupt practices and the like.
The Round Table Forum for Key Stakeholders
Experts met for a round table forum organised by Stanbic IBTC Capital, partnering with Actis and Resilient Africa.
What did they have to say? Well nothing new really, nothing we all don’t know could have been achieved years ago.
The theme of the forum was “Catalysing the Growth of Real Estate Investment Trust in Nigeria”.
Basically what they were saying is about how Nigerians need to harness its real estate potentials.
The round-table lead speaker from Cambridge University, Professor Baum, is himself a thought leader on global real estate investment. He says the potentials for the growth of the real estate industry are high, giving the fact that it is an attractive prospect for those with investable funds.
He makes us realize that investment in the home building sector for the African region is literally a “drop in the ocean”.
Quoting figures, it seems that “the gross asset value of real estate in Africa is only 1% of the world’s total value, despite the fact that the continent controls 15% of the world’s population”.
Thanks for letting us know about this Professor. Obviously this means that the average African leadership is still enjoying tea parties and not working diligently to help its people get affordable homes to reside in, be it low or medium cost housing units.
Regulatory Changes Will Impact Real Estate Development Positively
So what needs to be done to develop and attract these groups of investors to “cash in” on the opportunities that abound in the real estate industry in Nigeria?
To show a seriousness that is required, Nigeria needs to make some “appropriate regulatory changes” especially and most importantly modifications of tax regulations. This should, and actually will further encourage more investors to tap into this highly lucrative industry.
The round-table forum is a good step it towards achieving something positive it seems, but what happens to the implementation of these great ideas?
As Stanbic IBTC Capital, and its partners in this forum makes moves to facilitate the establishment of a viable real estate industry product in Nigeria, we wait with bated breath to see the outcome of this strategy, hoping this time around we don’t have to wait till “goodness knows when”, to get desired results.
Should we be optimistic and hope things work out fine in the home building industry this decade?
Time shall tell won’t it, but what do you really think?
Real Estate Industry – Books of Interest:
The Real Estate Game: The Intelligent Guide To Decisionmaking And Investment
Investing in Apartment Buildings: Create a Reliable Stream of Income and Build Long-Term Wealth
Standard & Poor’s Guide to Offshore Investment Funds
Real Estate Developer’s Handbook – Set Up, Operate, & Manage a Financially Successful Real Estate Development (includes CD-ROM)