Mr. Akin Opatola, Fellow of the Nigerian Institution of Estates, Surveyors and Valuers (NIESV) and CEO, Akin Opatola Consulting, is the Chapter President, FIABCI Nigeria. FIABCI is an acronym for International Real Estate Federation. In this interview with DAYO AYEYEMI, the astute estate surveyor and valuer, expressed optimism about the real estate outlook in 2025, giving insight on some of the massive and iconic projects ongoing that will position the sector for positive growth before the end of the year. He advised Nigerians and investors to take advantage of opportunities in the real estate sector to grow their wealth.

SOME experts have predicted brilliant outlook of real estate sector in 2025. What do you see as a core practitioner?

I’m very optimistic about the outlook for real estate this year.

And I say this because of a few things. If you look at the recent statistics that came out – Q4 Gross Domestic Products (GDP) figures of 2024 – you will notice that real estate performed extremely well. The GDP, I think, is slightly above 4 per cent. Renowned economists gave a positive outlook, IMF and World Bank have put the Nigeria’s GDP at about 3.8 to 4 per cent, respectively. They’ve seen a lot of our economic reforms have begun to stabilize and see how they begin to push through.

For the first time, if you dig deep into our budget, you will see that there have been a lot of emphasis and a lot of imputs into infrastructural development and capital projects. So, with those type of indices and indicators, there’s no doubt that the economy will push through. Real estate tends to always mirror the economy. So, because of that, I’m very, very optimistic.

On the other hand, naturally, I’m an optimistic person. I always like to begin the year looking at it. I’m also a player, I saw the way last year ended in a very aggressive and bullish nature. A lot of transactions, looking at it in the residential space, industrial, commercial and retail spaces. A lot of things are happening. I was opportuned to be at the Eco-Atlantic site to have a discussion with one of the major developers and owners of the Eco-Atlantic project just two weeks ago. Interestingly, he showed us and pointed out 25 different developments that are going on within the Eco-Atlantic simultaneously. MTN is trying to also begin their own development; First Bank is also trying to begin. There’s a retail mall, there’s a school and there’s a church. So, there is a lot of activities. There are six projects that have already commenced: The largest embassy in the world, the American Embassy. They are already two and a half years on, and they have about four years to continue and complete. There’s a data center also.

Looking at the 700-kilometer Lagos-Calabar axis, that is ongoing, it is going to be a major push. A lot of speculators are taking position there because we all know that if you buy land, whether you’re doing land banking or you’re investing across infrastructural nodes, there’s always going to be positive variance in your investments. That road is going on very fast. I was reading the other day in the newspapers that they’ve gotten a form of international funding for that project, which is amazing.

If I need to drill down to the Lagos State Government, we’ve seen the amazing development they’ve done with the rails: blue rail, red rail, the purple too. I’ve seen conversations around that.There are conversations around the second international airport along the Ibeju-Leki axis. A lot of diasporas are quite excited with these developments. I was reading on social media that about 600 residential apartments across the Ikoyi, Victoria Island, Lekki and Ibeju axis that are priced over a million dollar.

You know money will always chase value. So developers will always build because they know there’s a market for this. There are so many developers that are also trying to play in the low to medium segments of the market. I’ve seen a lot of push, having conversations with some of my colleagues. A few of them were made fellows last week. A few of them are in the Ministry of Housing. When I got deep conversations with the Renewed Hope agenda of this current administration, a lot of things are happening. A lot of people don’t know. It’s unfortunate that some of this information is not out there. They are building homes. I also want to implore a lot of Nigerians to take advantage. These are well-priced homes. They are for the medium to low-income. That’s one, two, three bedrooms in nice locations: Abuja, Osun State, Lagos State, Kwara State. Nigerians need to take advantage of some of these things. I’m very optimistic. I saw the way last year was because of the influx of Nigerians in the diaspora and foreigners. They had a very fantastic time. We saw the uptick during the Detty December. We saw the uptick in the short-lived Airbnb market. A lot of people want to take position because they know now that Easter is coming around, Summer is coming around.

Nigerians in diaspora will definitely come in because of the positive ripple effects of the way last year ended. Then, of course, we’re going to have another Detty December. I’m happy with the role Lagos State played in that.

There was a lot of security, fantastic infrastructure and the beautiful Third Main Bridge has been rehabilitated with streetlights.

These things give a positive image even to foreign investors when they are bringing in foreign funds into the country to come and play. I’m very, very optimistic.

We’ve seen that this year will be quite interesting. We need to just position ourselves properly to be able to take advantage.

 

When you say a lot of residential estates priced over $1 million, what do you mean?

I’m speaking about cost vis-à-vis the value. The research came out that there are 700, 800 of these units.

Developers will not build if there is no demand. These are very well-built, ultra-luxury residential homes within the VI, Ikoyi, Oniru, and Lekki Phase 1 sub-market. Of course, I’m speaking about Eko Atlantic.

We have huge demand from C-level executives, investors, expatriates.

Apart from the Airbnb market, who would want to even buy to live in, to take up some of these homes, we’ve seen the demand. They are also trying to build to take care of some of those demands.

They are well-priced. Most of them are within the $400million, $500million , $600 million price range. Of course, we know that they are well-priced and they are being taken up easily.

 

$500, $600 million houses can only take care of the people in the upper class, what do you say about the housing needs of those in the middle, lower income cadres?

If you look at the Nigerian population vis-à-vis the demographic, you see that Nigeria is a very interesting and unique country. Majority of us are between, at least 60 per cent and within the ages of 25 to about 45.

Those are the home-owning demographic. These statistics are what bring in a lot of these developers. When I say developers, I mean foreign developers and local developers.

Speaking specifically to the middle-income, a lot is happening. For my firm, we specifically like to play in the middle segment. We understand that segment, although we still have a lot of conversations on business and the high-end and the low-end of the market. A lot is happening. A lot of young, financially able individuals have seen the attraction. They’ve seen the return on investment playing in that segment. They don’t have the financial muscle to play at the luxury end.They want to stay away from the low-end. I spent about 12-13 years of my career in the financial services sector. I know what I’m saying. A lot of my friends coming together, seniors in the bank, they are still in banking, they are pulling resources together despite the challenges.

They know that 70 to 80 percent of building materials are imported. They know the challenges that to deliver a nice, well-priced home, is in millions. Nigeria is a unique case.

People are doing very well, despite the fact that you hear that Nigeria is poverty capital of the world, overtaking India. You see, there’s something called statistics paralysis. The more you look, the less you see. We saw what happened a few years ago when some of these major telecoms were trying to come into the country. We saw the bold moves that the likes of MTN, took. While some others were saying, oh no, is Nigeria ready for democracy? Are you sure Nigeria will boom under this telecoms sector? But you see what happened to MTN. They’ve been smiling to the bank. So, almost the same thing is happening here. A lot of people are skeptical.

A lot is happening, people are coming together, both on the mainland and Island. I’m speaking specifically to Lagos, if you look at the Lekki axis, you see what just transpired like a month ago for the opening of the Purple Mall.

The Purple Mall is a fantastic case in point. I’m so happy for Laide and his team. It’s an amazing, iconic project. They’re speaking about this project within Africa, and in some conversations, even in Europe.

That singular project with its mixed-use has transformed the Lekki corridor, specifically the Freedom Way. And it’s going to be almost a legacy project because the Freedom Way leads to about six to seven strategic estates along that corridor. This is done by an indigenous developer. It has residential, a bit of commercial, and has retail. He has taken the bold move, gathered funds, and be able to do that kind of iconic project. We’re expecting more. There are so many more and there are some that are still on the off-plan stage, which I don’t want to mention here.

This speaks to the middle-class segment. If you look at the mall, especially residential and the Airbnb part, it is well-positioned for the middle income.There are so many of these developments.

The challenge they’re having is that they’re almost building in silos. They’re not too large. You see development, whether terraces, whether flats, well-priced for the middle income, six units, 12 units, 14 units because of the financial challenge, we have the issue of mortgages to contend with.

But despite that, they have been doing very well. I have a particular developer, I will not mention his name but cumulatively, he has been in the Lagos market for about 12 to 15 years. He has single-handedly built close to 11,000 units. So imagine if the likes of the Lagos State Development and Property Company (LSDPC) can benchmark that. He can also get 10, 15, 20 of his colleagues. These are indigenous developers building over 10,000 units in Lagos.

It’s an amazing feat. Imagine if they can get the Lagos state government to partner with them and also get finance, the issue of affordability will be a conversation. Because with competition, the price will also come down. And where they can also get partnership with the Lagos state government on infrastructure, opening up some of these satellite cities, the pricing of some of these units will be more affordable.

Then the mortgage companies can also come in and try to bridge the gap in terms of affordability.

 

I want to congratulate you for your elevation as a fellow of the Nigerian Institution of Estates, Surveyors and Valuers (NIESV). How do you feel?

I feel very elated. It’s something that I’ve been aspiring to become.

I started within estate management in my 100 level. I’ve always loved the profession. I’ve always seen my senior colleagues, and I’ve always emulated them. So, I try to grow up the rank as an associate. I give glory to God and I also appreciate a lot of my mentors in the industry, because they’ve paved the way for me. So, I’m so happy that last week, Friday, I was conferred as a fellow of the noble and prestigious association. It is like the pinnacle of my career. But, of course, I know it doesn’t end there. There’s still a lot of learnings, of continuous improvements, and also mentoring the younger ones to go through.

 

What special responsibilities the new elevation confers on you?

During the ceremony, a lot of the eminent personalities that came to speak to us and give us educative talks did mention that our role, even as mentors now, shouldn’t end there. We must still participate in the affairs of the institution, which I’ve always been doing, and I’ll continue to do. I will continue to give my own quota. Currently, I’m always available. My colleagues know I currently teach sales and marketing. I’ve attended so many NIEVS programs where I’ve given my time, given my knowledge, and a little bit of my experience. So, that will definitely continue.

I will also continue with the giving back. So, there are about five, six institutions where I currently not just go to mentor, but I also go and give some of my resources. So, I give them good books, good materials. I also engage in coaching programs, which that will definitely continue. So, this is almost like the beginning of a new chapter for me. I see a lot of my seniors that, despite the time, I find out where they get the time.

I see some of them that are almost 70, 80 years. I learn from all these doyens in the profession, and I want to continue to give. So, this is, for me, like a new phase to be able to push on and to see what little mark I can also give to the younger ones and to the industry at large.

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by Dayo Ayeyemi