Lekki: Africa's New Business Hub.

Barr. Ibeneme Ifeanyichukwu

In this interview with Global Realty Portal(GRP) interview, the CEO of Cortz Integrated Services, Ikeja, Barr. Ibeneme Ifeanyichukwu, a lawyer and a realtor speaks on the effect of government massive investment in Ibeju-Lekki axis, the growth in the Real Estate Industry and other related issues.

GRP: What is your general overview of the real estate industry in Nigeria?.

BARR. IBENEME: First of all the Real Estate market is one of the biggest and lucrative markets on earth. In fact it ranks among the 4 major markets in the world, which include; the oil & gas market, commodity market, stock market and the real estate market. The Real Estate industry has come of age because unlike before, people have come to realise the value of real estate investment. More-so, we now have estate developers that have overtaken the industry, thereby eliminating quacks and restoring societal confidence in real estate investment.

GRP: Recently, Nigeria Institution of Estate Surveyors & Valuer (NIESV) established an association Association of Estate Agents in Nigeria (AEAN) to regulate the activities of estate agency in the country to curb the activities of impostors/fraud in the sector, do you think this could encourage investment in the sector?

BARR. IBENEME: Yea. Like I said earlier we now have educated and learned people in the industry unlike before. Though there is no profession or market that is completely deviod of fraudsters or quacks. But its my belief that formation of the association will to a great extent checkmate the activities of impostors and quacks. Because a prospect would now be availed the opportunity of verifying any acclaimed agent to ensure he/she is duly registered with the association.

GRP: In the world over, we've seen how government deliberately drive their economy by encouraging a massive investment in real estate, through the establishment of free trade zones,  & some other major infrastructural development like electricity, good & accessible road etc., using Lagos as example will u say Lekki Free Trade Zone, the proposed cargo International Airport, the industrial village, 4th Mainland Bridge etc., are all deliberate action of government to turn this place around?

BARR. IBENEME: You see there are fundamental factors that actually drive real estate appreciation. These are government or private sector projects. The second one is human traffic. The second factor is predicated on the first. The Ibeju-Lekki local government used to be thick forest and the only way govt can drive human traffic to that axis is by launching projects in that area. There's no other way. So the Lagos State government in an attempt to decongest the mainland, has to come up with Lekki Free Trade Zone, the new airport, etc. And these projects would in turn encourage real estate investments which will invariably open up the whole area.   

                                                   

GRP: On 26th September this year, the world bank through its international development assistant credit facilities programme in partnership with the central bank of Nigeria & the federal ministry of finance announce a $300m loan to finance long term mortgage to allow medium/low income earner access to mortgage, do you see this as boost for the industry?.   BARR. IBENEME: The world bank always has such facilities for the third world countries. This is not the first time. But the issue of corruption and nepotism has always been a bottleneck to realizing those world bank visions. If really the government and relevant agencies are sincere, those kind of grants would ordinarily boost real estate investments. But its unfortunate we are in a country where those kind of grants end up in private pockets of our politicians.

GRP: Looking at all these project currently ongoing in Lekki axis, do you think the goal of Lagos in making the state especially Lekki the hub of business activity in africa realizeable & how does it help to drive the desired development in real estate?.                                                  

BARR. IBENEME: Like I said earlier government and/or private sector investments drive human traffic and the two concurrently drive real estate appreciation.  So in the long run this Ibeju-Lekki axis would invariably become a business hub to beat in Africa.

GRP: How do think all these will benefit an average Nigerian, in terms of home ownership & how do you see the industry in the next 5years?.

BARR. IBENEME: Well, the only people that would benefit in this area in the long run are people that presently investing. Those that would come later would either lease these properties at exorbitant prices or buy at outrageous rates. So in other words, the would-be beneficiaries of all these government projects are the present investors in real estate in that area. In the next five years the real estate industry would be the most lucrative investment ever especially in the lekki/ibeju-lekki axis. Properties in the ibeju-lekki area would be selling for tens of millions.