Fresh hope for developers as foreign interests in property market swells

Growing interests in the Nigerian property market coming from overseas buyers and investors have raised fresh hope for real estate developers who have been passing through dull moments arising from the economic recession ravaging Nigerian economy.
In the past couple of months, about 700 of such interests wanting to purchase or invest in properties ranging from N25 million to N180 million have been confirmed by The Anirejuoritse Global Nigeria Limited (TAG) which, in a bid to curate these interests, is perfecting plans for a real estate exhibition and trade fair next month in the United Kingdom.
The exhibition which the company is planning in conjunction with Nedcomoaks Limited and Novaria Investment Limited is aimed to showcase properties available for sale to interested Nigerians abroad.
While Nigeria’s current economic recession has reduced demand in the real estate market, and the high foreign exchange rate limits investments with the weak naira , Nigerian nationals living abroad are taking advantage of the opportunity a stronger currency and easier access to funds offers them to invest in the country’s property market.
At a breakfast briefing recently, Michael Ejoh, TAG’s chief marketing officer, announced that the company had elicited about 700 interests in the Nigerian market and called on other developers to key into the opportunity to showcase their properties at the London expo.
Ejoh said the exhibition would provide a forum for real estate development firms, financial institutions including mortgage banks, insurance companies, asset management corporations to interact with Nigerians in Diaspora who are interested in resettling in Nigeria and want a property that befits their status or just want to invest in the market to take advantage of the weak naira and fall in property prices.
“Our objective is to expand existing and untapped real estate sector in Nigeria, provide credible database of properties available, create a reliable network to provide synergy between financial institutions and those who need the capital as well as increase conversion values,” he said. He disclosed that the company has built a database of real estate available in Nigeria and called upon local developers to take a stand at the London exhibition for a £1,000 fee to interact with Nigerians abroad and convince them to pitch their investments with them.
Ejoh assured that his company would publish the database as a magazine and those who cannot travel to London can have their developments exhibited in the magazine for a fee of £500.
At the recent press briefing on the expo, Francis Efoechoku, Tag’s chairman, said that the lull in the real estate due to the current recession has weakened the purchasing power of many Nigerians, and interests from abroad where a strong currency means they could buy at more competitive prices make the expo come at a most auspicious time.
Nigeria’s real estate sector is experiencing a decline in investments as high cost of building materials coupled with sky-high exchange rate is limiting investments in the sector. This has seen many vacant properties in highbrow areas of Lagos including Lekki, Victoria Island and Ikoyi.
But Ejoh told developers that the properties they would be exhibiting at the fair were those built to the utmost standard and that quality assurance was a big factor in the decision on which developer to partner with.
“We had a rigorous vetting process for the developers that we work with. They all have an established track record of performance and that is why we are dealing with them,” he said, disclosing that they were targeting over 36 developers and have already secured interest from twenty firms.