Adebolu Mayowa, CEO of Assethaus Limited, a real estate company, said that the real estate market in Lagos is poised for growth due to demand and supply mismatch, as the population continues to grow.
According to Mayowa, “The real estate market today in Lagos is still thriving with prices rising because there is a demand-supply mismatch in the sense that there is a lot of demand. There is a big number of people moving into Lagos. The population of Lagos State now is equal to 20 million and the housing deficit should be upward of 10 million housing units in Lagos.
“So generally the real estate sector is still poised for growth because of the demand and supply mismatch alone.”
Mayowa disclosed this recently during the launch of the company’s newest building apartment project in Lagos called Oakville.
The CEO said the sector will continue to grow, driven by innovation and the recent rating of the sector following the GDP rebasing. He added that Assethaus has also positioned itself to tap into this opportunity to drive growth.
“The real estate sector has been given a higher rating by NBS in the GDP and Inflation indexes. Real estate is now a major driver of the economy occupying a larger share
“We are not just operating on one end but the full end of the real estate value chain from construction, development, facility management to ensure that we tap the customer lifetime value across that value chain,” he said.
Dayo Adenubi, CFO and Strategic Officer of Assethaus Limited however explained that the company is committed to delivering high end luxury to neglected areas.
He said, “The core of development is happening in the luxury areas. What we are doing as developers is bringing those developments to neglected areas basically in Lagos. Most developers are only focused on the high end areas like Vi, Ikoyi and Lekki but we are bringing all of these developments to the average person in Lagos.”
Meanwhile, he pointed to funding as a major challenge facing the sector, noting that it is difficult securing both debt or equity facilities from financial institutions and high networth investors despite being compliant.
“Securing finding is very difficult not because we are not being complained about enough but because the economy is now very difficult and people tend to ignore the real estate sector during lending and financing activities.”
The CFO applauded the governments for their programme and initiatives through the ministry of finance and others, where Nigerians can have access to housing through their pension fund, while urging them to do more in the area of inflation which will help in price reduction of building materials.
