Professional Documents
Culture Documents
This edition takes on some fundamental issues of the personal skills or traits
that you can convert to cash in real estate investing. Starting small means
paying for a tenancy or a cheap plot of land. Growing big means building
houses or whole estates. These principles apply to all. We review the state
of Nigeria’s economy in a synthesis of the time being spent in the office of
Central Bank by the last two Central Bank Governors. They appear to have
been the most interesting twosome who ever ruled the apex bank. Their
actions and results have been different but that is what has brought us to the
state of our economy today. There is no way we can fully grasp Nigerian real
estate without keeping track of the economy. For instance, a friend and
colleague of mine gave me that gist of over forty houses now available for
quick sale in Ikoyi – the reason? A fallout of the recent Sanusi/CBN Bank bail-
out. The purchase of the houses were financed by the commercial banks and
the customers have been unable to pay so the banks have pulled the plug
and are now begging for buyers to come. Of course at reduced prices. Real
estate watchers will immediately then want to conclude that the market is
down. But remember – what is the cause? The wider macro-economic
events! So if you are interested in these “cheap” Ikoyi houses, just get in
touch with the Editor-in-chief! But wait a minute! I thought banks don’t lend
money to customers who want to purchase real estate for resale? They
decline and call it a speculative move. How come these ones were financed?
maybe because they are friends of the MD? Or maybe Ikoyi was exempt from
the speculative list being prime! See what I mean? This is how the wider
economy affects the property world. For those who indeed think property
market is down, it is not conclusive as it may only have truly affected the
high end of the market mainly in Ikoyi and Victoria Island/Lekki. It is not even
certain that high brow sections of Abuja like Maitama, Asokoro and parts of
Wuse are affected at all. Abuja property prices seem to defy every
reasonable law of economics and have risen to obscene levels in recent
times. Hello! Can someone in Abuja tell us what is happening? The best
houses in Ibadan remain relatively cheap as the highest price for a house in
the GRA or Bodija will probably just be the price for land in Abuja high brow
areas or Lagos Island plots! Portharcourt is trying to recover from the Niger
Delta problems and it may take sometime before buyer confidence is
restored to improve the market.
Honestly I’m unable to put a finger on the state of activity in the real estate
market right now. Some properties in hitherto favourite locations have come
up in parts of Lagos and Abuja and remain in the market unsold for months!
What is interesting is that there are few committed offers and it makes every
practitioner wonder. But just when you are about to conclude that the
market is in a bad state, one or two buyers eagerly come up to purchase
properties. It then makes conclusion difficult. Maybe it would suffice to say
the market is unstable but its not so bad.
All this is happening on the local scene whilst the international scene is
gradually improving. The UK has experienced gradual real estate price
appreciation for the sixth straight month. An indication that the market has
bottomed up? With interest rates at 0.5% (less than one percent!) How
would this not happen? The rest of the world – USA and Europe have also
seen slight improvements from the terrible price falls that were being
experienced before but things are still wobbly.
Enjoy reading this edition and the story of my memoirs under professional-in-
practice.
We look forward to a brighter industry, a better economy full of promises and
fuller electricity (6000mw?) better roads and of course, a better, richer you!
Best wishes,
Makanjuola Ojewumi B.Sc (Estate Mgt.), MSc Housing, ANIVS, IRRV, RSV.