Refined investors: Exploring, unlocking opportunities in real estate market
When real estate stakeholders gather in Lagos later this month at the instance of Fine and Country (WA) International for the November edition of its Refined Investors Series, the focus and discourse will be on investment in the burgeoning Nigerian real estate market.
The series described as a ‘real estate thought leadership initiative’ is a collaborative effort between Fine and Country and Institute of Real Estate Excellence (IREE) targeted at savvy investors, economic influencers, industry leaders, real estate developers, and stakeholders who are interested in exploring, understanding and unlocking the opportunities that abound in this market.
This month’s edition with the theme, ‘Building the Future of Nigeria’s Skylines’ and slated for the Civic Centre in Victoria Island is positioned to revolutionize the skylines in Nigeria and promises useful insights to be provided by star-studded speakers already lined up for the day.
These speakers include Jim Ovia, Chairman, Zenith Group and Quantum Luxury Properties; Udo Okonjo, CEO/ Vice Chairman, Fine and Country; Tawanda Gumbo, MD, Akintola William Deloitte; Nnenna Obiejesi, ED, Nestoil, and a host of other speakers.
“The investors’ series is part of our functions as a real estate marketing and advisory firm”, Okonjo explains, pointing out that the series became necessary considering that a lot of people, for lack of information, fail to ‘grab’ opportunities within their neighbourhood.
Okonjo added that the series, which provides answers to who, where, when, what and why (5Ws) on investment, is a forum through which her firm provides information on investment, stressing that investment is for everybody irrespective of age or gender.
At the June 2015 edition of the series, John Strang, the company’s Managing Director, noted that “the decision to invest in real estate often comes off as a difficult task and becomes all the more difficult when the decision is about where to invest and why”.
Strang’s advice in a situation like this was that prospective investors should work with credible and qualified real estate professionals to help with the process and listed a developer with track record of successfully executed projects, finance managers and mortgage providers, accountants, lawyers and insurance brokers as good guides for investors.
John who spoke on ‘Where to Find the Best Value in Lagos Real Estate’, highlighted the strengths and opportunities in investing in upscale locations in a city like Lagos, but pointed out that such locations also have their weaknesses and threats to investment.
Ikoyi, for instance, is an investment destination and its strength lies in its excellent location, ease of obtaining approvals for development based on precedent, high rents and return on investments (ROI) based on high demand, its internationally recognized and accepted location increases value perception, and the area has the highest office rents in Nigeria.
Strang pointed out high cost of land and approvals, restriction of building to high rise apartment to maximize land use, the need for an attractive design and layout of the project based on competing developments within the axis, and lack of storage rooms and individual green areas as some of the weaknesses of the area.
Though there are opportunities which include ease of rental from a large pool of prospective homebuyers (both locally and Nigerians in Diaspora) who would rather buy outright a finished product that meets their immediate needs in Ikoyi, there are also threats of construction challenges leading to delay of delivery.