Digitalisation and return on equity are critical for the future growth and development of the real estate sector in Nigeria, experts have said.
The experts, drawn from real estate, construction and tech industries who gathered at a recent real estate roundtable and breakfast meetings organised by Knight Frank Nigeria, also highlighted the need for players in the building and construction value chain to rethink and recreate urban centres and embrace remote work which is already reshaping market dynamics.
The roundtable, which had the theme, ‘estate, construction and tech; the future of real estate services was held at Wheatbaker Hotel in Ikoyi, Lagos.
Speaking at the event, Hakeem Ogunniran, chief executive officer, of Eximia Realty Company, said that for players in the real estate value chain to remain relevant in the future, there was a need for them to be strategic in the adoption of technology.
Oguniran stressed that the future of real estate depended on the adoption of technology, investment with a return on equity in mind, young talents and knowledge of the government regulatory framework.
“Asset creation and bold innovation in housing solutions are some other interventions needed to succeed in the future of the real estate business,” he said.
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Ogunniran noted that real estate was a growth enabler for other sectors and has an immediate multiplier effect on the economy and is also the key contributor of wealth for businesses.
Frank Okosun, senior partner, Knight Frank Nigeria, in his opening remarks, said the construction and real estate sectors were critical aspects of the Nigerian economy, contributing about 9 to 12 percent of GDP annually to the Nigerian economy in the last 10 years.
According to him, these sectors are key employers of labour, critical factors of production and the hosts of all businesses, living or recreational activities.
Okosun recalled that the COVID-19 pandemic accelerated the necessity and power of new technology to influence how people live, work and play, adding that COVID has not been the only driver informing the prominence of technology in the world.
“The incessant recession periods, reducing purchasing power, volatile exchange rate regime, changing user demographics and changes in tastes and fashion of occupiers have all also resulted in significant alterations in ‘how and what goods and services are in demand, construction and real estate inclusive,” he said.
On his part, Henry Iseghohi, managing director, Broadbased Communication Limited, emphasised the need for all the players in the real estate value chain to rethink how they do business and embrace digitalisation to drive the numbers.
“All stakeholders in the real estate sector need to be abreast of current digital disruptors and seek to leverage the same in the eco-system for real estate business success”, he said.
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