The Managing Director of leading Real Estate Company, Afriland Properties Plc has identified high-interest rates and forex volatility as major factors militating against the growth of the Real Estate industry in Nigeria.
Speaking at the 2021 edition of the West Africa Property Investment Summit held at the Four Point Hotel Victoria Island, Lagos, the expert provided insight into problems faced by developers in the real estate industry as a contributor to a discussion focused on trends in financing real estate projects in a post-covid world.
She said “Most of the loans available are at double-digit rates and this makes it very difficult to get a decent return on investment. The Loan Tenure is another challenge faced by developers; Short-term loans are not suitable for infrastructural projects which are long-term in nature.
She also highlighted the effects of the volatility of the dollar on projects. “The Private Sector, Federal Government and all relevant regulatory agencies need to come together to develop a framework that will hedge against these challenges and agree on key measures that will promote cheaper constructions and drive infrastructural development in the Country”.
Read also: GAC Motor to tackle unemployment with new assembly plant
The Afriland Properties Plc CEO attributed her company’s success over the years to a strategy built on focused development.
She stated “We do not operate the “Build and they will come” model. A lot of people have put up projects and are still waiting for people to occupy them. Rather, we identify a need, work closely with prospective off-takers before commencing construction”.
Another strategy deployed by Afriland, is having a diversified portfolio of investments and product offerings. She pointed out that Afriland’s revenue lines are not limited to real estate development only.
“Afriland offers end-to-end services across the real estate value chain. We deploy diverse offerings that are tailor-made to offer value to niche clients. Facility management, Project Management, Real Estate Agency services are some of the diverse offerings we deliver.”
It will be recalled that Uzo Oshogwe was recently presented with the award of “Leading Woman in African Real Estate” at the 5th edition of the African Property and Investment (API) awards ceremony.
Under her stewardship, Afriland Properties Plc has achieved growth from a balance sheet size of N4.24billon when it commenced business in 2013 to N27.1billion currently.
