Nigeria is experiencing rapid urbanization due to a variety of factors. With an estimated annual national population growth rate of 2.6% and an urban population growth rate of around 4.2% (Source: World Bank), Nigeria’s population is becoming more focused, with just under 50% of Nigerians living in urban areas — and these numbers will continue to grow.
Urbanization and other factors have been responsible for the viability of the real estate industry in Nigeria.
Although real estate has its set of challenges in the country, the statistics highlighted above have driven a number of new investors into the real estate business in Nigeria. One such enthusiastic investor is Mr. Silver Oghayore- an emerging-market strategist, advisor and investor.
Oghayore believes his investment banking background as well as his vast experiences working with some of the largest hotel chain management and financial groups in the United States, South Africa, Brazil, and the United Arab Emirates (UAE) has positioned him well for success in the Nigerian real estate sector.
His drive for excellence is bolstered by his integrity and transparency, two traits which have been driving factors in contributing to his global successes. Oghayore’s dramatic debut was the Festus Courts Condominium, on the Lekki Pennisula in Lagos. Situated inside the Ocean Bay Estate, Festus Courts will consist of 2- and 3-bedroom units with BQ.
As Oghayore ventures into real estate in Nigeria, his global outlook and vast travel experience have equipped him with the ability to introduce a novel concept of real estate dynamics in the country. One vision is for a group of hotels to be owned by individual investors, where individuals interested in hotel ownership but unable to raise adequate capital, can lay claim to a piece of a 5-star hotel through investments.
Mr. Oghayore has recently announced his latest interest in the real estate sector in Nigeria. Silver Tower is expected to be an iconic tower nestled in the serene and classy Periwinkle Lifestyle Estate in Lekki Phase 1. Traditionally, real estate investments in Nigeria have been split between private residence and commercial space. Oghayore, however, intends to usher in a hybrid which is the new concept making waves around the world, a mix of private residences and premium serviced hotel apartments, where guests can enjoy access to 5-star amenities.
As an emerging economy, Nigeria’s real estate sector is evolving at a tremendous pace. Governments at all levels are more aware of the role of real estate development in the growth of their respective territories. Ministries, Departments, and Agencies (MDAs) as well as private companies now have policies to assist their staff along the path toward home ownership. It has also become more prudent for employers to build their own estates to accommodate employees rather than pay housing allowance throughout the period of their employment.
The challenge, however, is that the rise of real estate companies and professional real estate developers has ushered in a creed for quick sales at the expense of integrity and transparency. Little wonder, the real estate business invokes sentiments of dishonesty and skepticism as a slew of investors have bought properties that had been previously sold.
It is this principle that has endeared him to well-positioned partners in the real estate sector in Nigeria like Heritage Realtors and Property Gate, with whom Oghayore is currently working for the realization of the Silver Tower building. Nigeria possesses all the key factors for real estate investment — a growing middle-class population, growth in consumption, rapid urbanization, and a young demographic compared with more mature economies. Nevertheless, financing remains a problem both for property developers and prospective homeowners; this challenge, as well as taxation, high interest rates, Naira devaluation, and corruption are some mitigating factors that investors in real estate must battle.
Oghayore is not alone with his concern over the high cost of property development and strenuous bureaucracy in the land registration process. However, despite the economic downturn, real estate continues to boom in Nigeria. Oghayore is doing it right, and looks forward to being a part of this boom.