Nigerian investors have been told to invest in their country to grow its economy and, by so doing, inspire the confidence of foreign investors in the economy and its huge potential.
Despite its large market, the level of foreign direct investment remains low in Nigeria and experts attribute this to lack of confidence in the economy, citing real estate sector where the country has investment gaps, yet investors are staying away.
“With a housing deficit estimated at 20 million units, about 25 percent home-ownership level and a very active rental market where over 80 percent of the country’s 200 million population are renters, investment interest in the sector remains low,” experts say.
“Nigerians need to invest in Nigeria to grow the economy and to inspire confidence in foreigners,” Andrew Nervin, Partner at West Africa Financial Services, and Leader/Chief Economist at PricewaterCoopers (PwC), advised.
Nervin whose advice was contained in his keynote speech at the Real Estate Investment Series (REIS) hosted in Lagos by Fine & Country West Africa International, explained that “international investors would not invest in Nigeria unless Nigerians start investing in Nigeria.”
REIS is an annual real estate event that draws attention to identified real estate market problems. It takes multi-dimensional approach to point smart investors to strategic opportunities in the market as well as guide them through efficient visioning, planning, and management of their investments.
It also addresses current state of the real estate market, regulatory updates, challenges, opportunities, new growth areas and the focus for the year 2020 with contributions and perspectives by experts from marketing, legal, taxation, and finance.
As part of approaches to inspiring investor-confidence in the economy, the experts offered insights into structuring real estate deals and the strategies for ensuring optimal returns for every real estate project.
Lolade Ososami, Partner at Udo Udoma & Bello-Osagie, along with other experts at the event including Obi Nwogugu, principal partner at African Capital Alliance, and Olawale Opayinka, CEO, Eko Development, highlighted the factors that define the Nigerian real estate market.
These factors include financial risks, changes in taxation policies, the objectives of the investor in a changing market, the role of government and policy making in land and urban regulations, and the need for innovation in the real estate sector.
The highpoint of the day’s event was the unveiling of ‘The Nigerian Real Estate Market Report’, an insightful report compiled by Fine and Country with contribution from PwC and Udo Udoma & Belo-Osagie.
The Report reviews the economy and the opportunities it offers. It gives an in-depth review/study of the residential real estate market; dead capital and its effect on asset classes; the commercial real estate market; land registry reforms that facilitate development in Nigeria, and Blockchain technology as a viable regulatory tool for land reform.
Source: This Day