Professionals, real estate developers and investors have been tasked with strategies to stay in business in the period of harsh economic challenges. DAYO JACOB, reports.
Going by the multi-faceted challenges militating against operators in the Nigerian real estate sector, both professionals and investors alike have been urged to diversify investment portfolios and products in order to stay afloat in business.
Besides, they are encouraged to maintain a healthy management’s framework and strong financial standing to remain in business.
According to the Managing Director/Chief Executive Officer, Afriland Properties PLC, Mrs Uzo Oshogwe, these strategies have become imperative for survival in the “VUCA” economy
She explained that VUCA represents volatility, uncertainty, complexity and ambiguity in economy, pointing out that that with unpredictable times in the Nigerian economy, operators must develop strategic foresight, agile mindset for change, emotional intelligence towards staff, prioritise innovation and focus on customers/market needs.
She wants operators to consider a mix of facilities management, property rentals, property management and brokerage to get balanced.
She encouraged them to change the building construction model from the usual ‘bricks and mortar’ and ensure their businesses continue to be liquid.
Speaking at the international Real Estate Federation (FIABCI) Nigeria, 2024 Annual General Meeting and Induction of 26 new fellows in Lagos, Oshogwe in her presentation on: “Real Estate/Leadership and Strategy for Business Growth in a VUCA economy,” said there was need for resilience and risk management.
She urged the operators to leverage strategic partnership and allow collaboration to make progress, while developing an ecosystem that facilitates growth.
She warned that the era of building large rooms is gone, adding that taking a loan at about 30 per cent interest rate is no longer advisable.
Rather, she enjoined real estate developers and practitioners on the need to be smart in developing financing models for projects.
With changing times, Oshogwe noted that for developers to build affordable housing and bridge existing deficits, they would have to partner with the government to ensure that land and infrastructure are subsidised.
She said that the importance of clear and flexible strategic vision cannot be underestimated, adding that it would help to manage uncertainty, as well as reduce ambiguity by setting clear timelines for projects, and goals that are measurable.
“You must be adaptive to change, carry out market analysis and invest in research and development. Be transparent and accountable to build trust, be able to communicate effectively with your stakeholders.
“You must also simplify decision making. The only way you can do that is by having the right information. So data is key here. To address ambiguity, clarifies purpose and intent, ” She advised.
Talking about alternatives, a realtor, Mr. Rachael Onuweri, urged developers and investors to invest in land banking and reap the benefits in the next one year to five years, depending on the location.
Explaining, he said:”Land banking is a situation where you buy a place that is not really fashionable, it is not attractive at the moment but when you invest in it, you leave it. In real estate, you don’t rush, you take your time. When you invest in land banking, you buy a forest or anyplace, you keep it in the future. It depends on how the market is moving, you can reap high returns on investment.
“Don’t say anywhere is bush, buy land where you can afford it. If you don’t want to stay, you can build it or even leave it for the future.”
Meanwhile, Outgone President of FIABCI, Nigeria, Mr Gladstone Opara, who spoke on achievements of the association, said its membership including professionals from the building industry and others, grew by about 200 per cent in the last two years. He noted that FIABCI Nigeria participated in over 25 international events, popularised and rebranded the association, adding that its Young Professional Members Council remained very active and alive and were instrumental to many of the webinars and study tours embarked on.
However, he said FIABCI Nigeria needs a permanent secretariat and plans are on towards securing a secretariat. He called for more efforts towards reviving the FIABCI’s National Councils of experts to enhance growth in knowledge in different aspects of real estate and promote members participation in activities and networking.
Opara said: “We have been able to make use of the tool of wide collaborations with other professional organisations to enlarge the coast of FIABCI Nigeria. We are all witnesses of how our collaborations with Knight Frank Nigeria, Nigerian-British Chamber of Commerce, Nigerian Institution of Estate Surveyors and Valuers and BuyletLive have yielded fruits in terms of growth in membership, finance and publicity. Finally, I will advise an upward review of our annual dues in line with the rising inflation and economic downturns of the present times.”
President of FIABCI Africa and Near East Region, Adele Adeniji, charged the new members and leaders to ensure compliance to the oath of allegiance, and remember the trust and confidence reposed in them.
Adeniji advised them to uphold the high ethical standards and professionalism that define the association, adhere to board decisions and lead with courage and confidence.
He urged incoming executives, whom the mantle of leadership rests with, to commit to excellence that will ensure that FIABCI-Nigeria continues to thrive both locally and internationally, as well as bring fresh ideas, innovative solutions, and enhanced collaboration with other professionals in the building industry across Nigeria.
“We are entrusting the leadership of this association into your capable hands, confident that you will raise our banner high. To colleagues, your unwavering support is invaluable. As we prepare to host the 75th World Congress of FIABCI in Nigeria from June 2 to 6, 2025, let us showcase to the world our ability to excel,”he said.
FIABCI World President, Ramon Torroba, in charge told members to play a crucial role in promoting ethics, embrace technology , professionalism and collaboration, attract more younger generations to the institution and ensure sustainable development in communities across the world.
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