Across various segments of the real estate sector, construction sites are quiet as economic activities are shrinking in response to the crippling effect of inflation and other adverse macro-economic conditions, a realtor has said.
The realtor, Debo Adejana, director of studies at School of Estate and Business, explained the negative impact of the current economic pressure in the country on the sector, citing soaring prices driven by high inflation as a major factor affecting sale and slowing activities at construction sites.
Adejana spoke during the school’s graduates industry visit to Wemabod, one of the foremost real estate development companies in Nigeria.
“Real estate sector prices are going up because the rate of inflation is high and, on the reverse side, people’s disposable income is also shrinking and it’s telling on sales. Prices are going up and sales are not really at the level they used to be,” Adejana said.
According to him, this has also led to slow supply in the industry leading some sites to be dormant and projects unfinished.
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“Some sites are either dormant at the moment or really slow in terms of construction activities because of the state of the economy. So, these are some of the effects,” Adejana said.
He explained that the industry visit would help the students to get more inspiration and aspiration that would enable them to expand their dreams and achieve their goals in the sector.
“This is an enterprise that is over 50 years old and still doing real estate development. This can help the graduates to see that they can attain longevity in the sector and learning from Wemabod story will help to attain longevity when applied to their own,” he said.
He added that the students would also be inspired by the current share size of Wemabod.
Taofeek Olawale, one of the graduates of the School of Estate, spoke on the impact of the industry visit to Wemabod saying that the visit and training with School of Estate had widened his knowledge on real estate which, he hoped, would be impactful to his career.
“I knew a little about real estate but I realized what I knew was not even a tip of an iceberg. So, it was loaded and impactful and it’s something I wished I had done earlier,” he said.
He explained that with the industry visit, he had been able to learn more about property management and the path taken by managers for effective management.
Wemabod had series of sessions with the graduates, including lectures on property management. They emphasized the importance of insurance and technology for effective management.
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