Experts see growth path for real estate sector in partnerships, incentives

Built environment experts have said that there is growth path for the real estate sector in collaboration and partnerships at national and regional levels, and also in good incentives for both practising and budding professionals.

The experts, who spoke at a lecture hosted by the African Real Estate Society (AFRES) in Lagos recently, highlighted the importance of partnerships and encouraged practitioners at group and individual levels to be open for them for the growth of the sector.

The lecture which was held in honour of Kunle Awolaja, the AFRES President, had as theme, African Real Estate Outlook: Find Value After the Great Reset.’ The Great Reset, according to the experts, presents an opportunity for Africa to leapfrog traditional models, focusing on sustainability, technology and inclusivity in real estate development.

Awolaja, in his opening remarks, noted that the society has done well in its collaboration with global bodies, especially in the Caribbean where, according to him, AFRES has been inducted as the 6th region in the African Union.

“This expansion is not just a geographical feature, but also a great stride towards fostering global partnerships in the real estate sector,” he said, announcing that there would be a summit in Darkar, Senegal scheduled for May 2025 which is aimed to strengthen bonds and ensure formidable regional integration.

The president disclosed that AFRES has signed a Memorandum of Understanding (MoU) with three international organizations, including South Africa Council of Valuers (SACVP), the Kenya Institution of Surveyors (ISK), and the International Real Estate Federation (FIABCI).

Though a lot has been said, Awolaja urged members to bear in mind the changes in structures and patterns in the world, noting that AFRES as a platform needs to tilt towards the direction of those changes. He hopes that the real estate sector in Africa will be able to adapt.

Kola Akinsomi,immediate past president of AFRES and president-elect of International Real Estate Society (IRES), who was the keynote speaker, also harped on the benefits of collaborations and partnerships.

According to him, partnership between industry and academics inspires new knowledge which can stimulate innovation and economic growth; it can also contribute to further development of property research and education, just as they provide financial support and gives universities access to resources to fund research.

“Partnerships produce skilled employees from university students with practical training and specialized expertise,” Akinsomi said, adding that there is need to strengthen them in the area of providing scholarships and grants for students who do well in real estate and urban planning so as to encourage them and to attract more players to the sector.

He commended the society for its collaboration with the America Real Estate Society, European Real Estate Society, Caribbean and Latin America, pointing out that the society has grown over the years.

Timothy Nubi, a Professor of Housing and Urban Regeneration at the University of Lagos, underscored the importance of providing incentives for students in real estate discipline, by encouraging and providing attractive packages for them during their six months industrial training.

Nubi noted that there have been changes in the world that are affecting the sector, and stressed the need for shifts as the situation in the world will require the sector to follow suit.

He recalled how Covid-19 changed the normal routine in the sector, leading to reduced demand in office space due to remote working or work from home, and decline in retail business due to increase in e-commerce sales. He also noted the economic and financial challenges affecting the sector, especially in healthcare infrastructure.

Nubi harped on how real estate can change the economy of a nation, estimating that half of the global wealth is generated from the real estate industry and cited United States of America as an instance of a country where real estate contributes significantly to its economy.

According to him, the impact of real estate on wealth cannot be underestimated in the area of job creation, infrastructure, urbanization and modernisation, adding however, that debt of nations is growing because the number of people moving into the urban area is very high which creates more slums and undermines the industry.

To solve these problems, Nubi suggested that every city should provide employment opportunities and better quality of life for the people while good housing policy should be adopted and implemented by the government.

He added that there should be low interest rate in the mortgage market, pointing out that finding a lasting solution to slums development would involve encouraging a “dual-city possibility” where the rich and poor will be able to afford decent housing in conducive environment.