Economic, demographic shifts seen changing real estate investment landscape by 2020

The year 2020 is, increasingly, being laden with expectations of milestones from almost all spheres of human activity and, for Nigerian real estate investors and sundry players, an understanding of economic and demographic shifts is critical because it is expected that these shifts are going to change investment landscape in this sector by that year.

Within that same period, expectation is also high that technology which is permeating every aspect of human existence with the speed of light, will be disrupting the economics of real estate, meaning that with the growth in online shopping and virtual office, there will be imbalance in demand for, and supply of retail and office spaces respectively.

“By understanding the economic and demographic shifts that will change the real estate investment landscape, investors can be fully prepared for the challenges and opportunities of 2020 and beyond”, says Ruth Obih, 3Invest Limited, noting that rapid urbanisation and demographic changes, especially within emerging markets, will lead to substantial growth in real estate investment.

Obih, who spoke at this year’s edition of her company’s Property Buyers Forum (PBF) in Lagos, highlighted trends that would shape real estate investment by 2020, projecting that global stock of investable real estate would rise by more than 55 percent to about $45.3 trillion, up from $29 trillion in 2012, and would expand again by equal proportion by 2030.

A young but dynamic company that opened for business in 2007, 3Invest is an emerging commercial real estate company out to serve investors, developers and occupiers with interest in technology-driven spaces. Its PBF is an annual event through which it brings together property buyers and developers to interact on current trends in the property market.

This year’s edition hosted in association with Social Media Week with the theme, ‘Using Technology to Maximise Your Real Estate Investment’ was a technology-based event that educated professionals and investors on how to use technology in today’s real estate market.

Applying technology in real estate business has become imperative because intense competition for prime real estate is likely to cause real estate managers and investors to seek out new opportunities for yield and as they venture into new territories, the growing and changing real estate world would present them with wider range of risks which they should be equipped to manage.

Real Estate professionals are encouraged to embrace technology in order to prosper in today’s real estate world and this is because, according to Obih, mobile technology, 3D printing and crowd funding are the digital tools needed to maximize real estate investment in today’s market.

Recognising affordable housing as ‘the next big thing’, she called for  redefinition of affordability in the Nigerian housing market, advising the public sector to study successful private capital models like investors programmes in order to vitiate the real estate investment space.

Other speakers at the event were Ononuju Irukwu the MD, Chapel Hill Denham; Chioma Ogbu of Gran Imperio Group and Femi Odunlami of Briscoe Properties Limited who also made presentations showcasing their completed and ongoing projects to the audience which comprised real estate players and buyers. 

CHUKA UROKO