Urbanization And Real Estate Prospects In Nigeria
Nigeria is experiencing rapid urbanization, with an estimated annual national population growth rate of over 2% and an annual urban population growth rate of about 4%. The population is becoming more and more focused to the urban areas, towns and cities with just under 50% of the population living in urban areas — and this number will continue to grow. This is one of the factors responsible for the viability of the real estate industry.
Although real estate has its set of challenges in the country, the prospects highlighted earlier have driven several investors into the business in Nigeria and one of such enthusiastic investors is Mr. Silver Oghayore.
Oghayore believes that his vast experience from working with some of the largest hotel chain management and financial groups in the United States of America (USA), South Africa, Brazil and the United Arab Emirates (UAE), his investment banking background would guarantee success in the sector.
He posits that other requisite characteristics include; a penchant for excellence, astute dexterity and transparency. According to him, these traits saw him lead several organizations to new heights, amassing colossal fiscal returns and placing the companies at par with global competitors.
Traditionally, real estate investments in Nigeria has been split between private residence and commercial. Oghayore intends to usher in a hybrid which is the new concept making waves around the world and gaining massive followership due to its flexibility and superior returns on investments.
As a developing country, Nigeria’s real estate sector is evolving at a tremendous pace. Governments at all levels are more aware of the role of real estate development in the growth of their respective territories. Ministries, Departments and Agencies (MDAs) and private companies now have policies to assist their staff to own a home.
It has also become more prudent for employers to build their own estate to accommodate their employees rather than pay them housing allowance throughout the period of their employment.
The challenge, however, is that the rise of real estate companies and professional real estate developers as ushered in a creed for quick sales at the expense of integrity and transparency. Little wonder, real estate business invokes sentiments of dishonesty and skepticism as several investors have bought properties already sold to other persons.
Nigeria possesses all the key factors for real estate investment — a growing middle-class population, growth in consumption, rapid urbanization and a young demographic compared to more mature economies.
Nevertheless, financing remains a problem both for property developers and prospective homeowners, this challenge, as well as taxation, naira devaluation, corruption, are some mitigating factors that investors in real estate must overcome.
Oghayore, other real estate investors and potential ones, also have to be concerned about the high cost of property development and strenuous bureaucracy in land registration process.