“As the economic climate bites harder, making investment decisions in real estate has become tougher. While some have lost hope in the sector, preferring to trade in foreign exchange in view of the recent dollar surge against the naira, key industry analysts and stakeholders are still convinced that the real sector investment still holds the ace.
Their position was based on some fundamental principles of investment; one of which is never make permanent decisions based on temporary situations. One of such optimists in the sector is the Managing Director /Chief Executive Officer, Sujimoto Construction Limited, Mr. Sijibomi Ogundele.
According to him, although the real estate and property market was slightly affected by the downturn in the economy, yet, unlike other investment portfolios, properties in the Ikoyi axis, especially in Banana Island, have enjoyed great stability as their prices have consistently held value.
The Sujimoto helmsman revealed that his firm, by applying three fundamental principles of real estate has been able to guide prospective investors in the sector to achieve maximum return on their portfolio. These principles he listed include property location, price and quality.
“Our only mission is always to exceed customers’ expectations by providing exceptional real estate at an affordable price. If you want to know about luxury real estate, speak to Sujimoto. The same rule applies when you want to learn about investment, you need to consult someone who has amassed substantial wealth and successes by investing in several businesses,” he said.
Buttressing further the huge inherent potentials in the industry, Ogundele referred to Andrew Carnegie, an American industrialist who led the expansion of the American steel industry in the late 19th century. “More money has been made in real estate than in all industrial investments combined. 90 percent of all millionaires become so through owning real estate,” Carnegie was quoted to have said.
Therefore, he said, one vital lesson investors need to learn from Carnegie is that those who depend on the current weakness of the naira will have themselves to blame, as real estate has proven to be a secured and safest investment portfolio that guarantees the best return on investment (ROI).
He blamed the prolonged economic recession and the crash of the forex market- two factors that have forced landlords and caretakers to reduce the prices of their apartments, for the prevalence of several empty apartments in the country. Besides, the quality of apartments is also a factor for its occupancy.
“Recently, a client commissioned us to help look for a good property and we realised that there are lots of extremely expensive terraces and apartments with terrible finishing. It is like offering a Toyota for the price of a Bentley,” he said. This shocking revelation, Ogundele further said, prompted his firm to set up a small project in Banana Island in Ikoyi. The apartments, all sold out, Ogundele explained, has been able to bring the three major principles of real estate into one space—incredible location, great finishing, and exceptional price.
He advised investors to ensure tat they are investing in the right property that will guarantee value, great returns and peace of mind at a great price, even as he expressed confidence that the housing market will experience a great boom, even as the economy gradually frees itself from recession.”
Source: The Nation