Accelerating the process of digitalization and strategic focus on return on equity are critical to the future development of the real estate sector, industry experts have said.
Professionals in the real estate, construction and tech industries who gathered at the Real Estate Round Table and Breakfast Meetings organised by Knight Frank Nigeria also spotlighted the need for players in the building and construction value chain to rethink and recreate urban centers and embrace remote work which is already reshaping market dynamics.
This first in the series roundtable event, which had the theme: ‘Estate, Construction and Tech; The Future of Real Estate Services’ held at Wheatbaker Hotel in Ikoyi, Lagos.
Speaking at the event, Hakeem Ogunniran, chief executive officer, Eximia Realty Company, said for players in the real estate value chain to remain relevant in the future, there is a need to be strategic in the adoption of technology.
According to him, the future of real estate is one based on the adoption of technology, investment with a return on equity in mind, young talents and knowledge of government regulatory framework.
“Asset creation and bold innovation in housing solutions are some of the interventions needed to succeed in the future of the real estate business,” he said.
Ogunniran further noted that real estate is the growth enabler for other sectors and has an immediate multiplier effect on the economy and is also the key contributor of wealth for businesses.
Frank Okosun, Senior Partner, Knight Frank Nigeria in his opening address said Construction and Real Estate sectors are critical aspects of the Nigerian economy contributing a cumulative of about 9 to 12% of GDP annually to the Nigerian economy in the last 10 years.
According to him, these sectors are key employers of labour, critical factors of production and the hosts of all business, living or recreational activities.
Okosun said the Covid-19 pandemic accelerated the necessity and power of new technology to influence how people live, work and play, adding that Covid has not been the only driver informing the prominence of technology in our world.
“The incessant recessions, reducing purchasing power, epileptic exchange rate regime, changing user demographics and changes in tastes and fashion of occupiers have all also resulted in significant alterations in ‘how and what goods and services are in demand. Construction and real estate inclusive,” he said.
On his part, Henry Iseghohi, managing director, Broadbased Communication Limited, re-emphasised the need for all the players in the real estate value chain to rethink how they business and embrace digitalisation to drive the numbers.
“All stakeholders in the real estate sector need to be abreast with current digital disruptors and seek to leverage the same in the eco-system for real estate business success”, he said.