Real Estate Sector Strategizes for Investor Trust Amid Economic Uncertainty
Real estate practitioners in Nigeria are devising strategies to bolster investor trust and confidence in the face of economic challenges. Emphasizing the importance of tapping into the capital market, cultivating robust banking relationships, and maintaining transparent records, industry operators aim to ensure continued investment in the sector.
Dayo Adenuni, CFO of Assethaus, a prominent property development and management company, highlighted the trend of real estate firms turning to the capital market. He explained how issuing commercial papers and bonds becomes a crucial financial avenue, providing a buffer against delayed investor payments.
Speaking at an investor meeting in Lagos, Adenuni also underscored the significance of strong developer-bank relationships. Assethaus, for instance, relies on private financiers to supplement investor funds, coupled with meticulous cash flow management to meet project timelines.
In a bid to make real estate more accessible, Assethaus is actively lowering entry barriers, particularly for the middle class. By introducing innovative building and payment structures, the company aims to enable working and middle-class individuals to invest in properties that generate consistent cash flow.
Looking ahead to 2024, Adebolu Mayowa, CEO of Assethaus, outlined the company’s plans, including the completion of Crestville Apartment 2 and a threefold increase in investor returns. Additionally, there’s a strategic focus on multi-family unit investments and vertical business ventures to enhance overall company performance.
Commenting on the broader housing landscape, stakeholders, including Dangiwa, emphasized the need for collaborative efforts to address housing deficits. Stressing the inadequacy of budgetary allocations, Dangiwa highlighted the importance of public-private partnerships to foster innovation, efficiency, and increased funding access. This collective approach aligns with the government’s vision to lift 100 million Nigerians out of poverty by enhancing access to decent and affordable housing, with a parallel focus on job creation.
