Stakeholders in the real estate industry have fashioned strategies for growth of operators in the sector.
They made the suggestions at the 10th anniversary of LifePage, a firm of developers.
They said investment in real estate or marketing needed training. They noted that one could also work with operators, or go outside the traditional ways of funding to associations and groups that target real estate investors, to provide funds, grants and single digit loans that are best for the sector as a result of its long gestation.
Speaking on the theme “Attracting Foreign Direct Investment and project financing options”, the Fundraising Consultant, Growvest Financial Advisory, Senami Amusu, said prospective real estate operators could tap into their alumni, family, friends and a cooperative society to raise funds.
She advised realtors to explore innovative technologies, create services where they live such as data centres and logistic hub.
Amusu also advised those who intend to go into real estate to look beyond rental income by working with investors such as Angel Investors, Family Homes Limited and Shelter Afrique who have over N48 billion for real estate businesses who are ready to build houses in large numbers.
Also, Prof. Lere Baale, chief executive, Business School Netherlands International, said real estate is not for quick bucks but that it assures of income over ti. He stated that the road to success is in identifying where to operate and not to lump everything for ease of management. He urged realtors to learn how to buy land and hold it until it appreciates for them to make gains.
On growth drivers, he listed them as affordability, growth, law and regulation. He advised the participants to develop what he called viral loops.
Noting the real estate investment is profitable in Nigeria, Baale said statistics has shown that the top five per cent wealthy Nigerians are wealthier that the 10 per cent wealthy Americans, adding that two million Nigerians are millionaires not just in Naira but in Pounds and dollars that they could approach for business.
The don added: “There are a number of factors that impact real estate prices, availability, and investment potential. Demographics provide information on the age, income, and regional preferences of actual or potential buyers, what percentage of buyers are retirees, and what percentage might buy a vacation or second home. Interest rates impact the price and demand of real estate—lower rates bring in more buyers, reflecting the lower cost of getting a mortgage, but also expand the demand for real estate, which can then drive up prices.”
Earlier, Chief Executive Officer, LifePage, Mr. Oladipupo Clement, said: “There are several opportunities for making it big as a realtor in Nigeria, however, the referral method which requires little or no funding to get started with, remains the cheapest. This method is one everyone does without even knowing or being rewarded for and this is where we have played successfully as a business. We have put structures in place to ensure that everyone benefits from their effort.”
Other speakers were Mr. Leke Alder, principal, Alder Consulting; Dr. Olumide Emmanuel, author of The School of Money, and Damilola Hassan, managing director, Meristem Trustees Limited.
Source : The Nation