The Lagos real estate market is robust, holding substantial potential for development and plays a vital role within the state ecosystem owing to the surge in population, urban development, and economic advancement. According to Mrs. Barakat Odunuga-Bakare, the Special Adviser to Governor Babajide Sanwo-Olu on Housing, the sector contributes substantially to the state Gross Domestic Product (GDP). She mentioned this during the fourth Lagos Real Estate MarketPlace Conference and Exhibition, hosted by the Lagos State Real Estate Regulatory Authority (LASRERA), The conference was themed: “Real Estate Regulation – A Panacea For Disaster Mitigation and Recovery in the Built Environment.”
With its lucrative real estate market, Lagos has proven to be a catalyst for job creation, addressing housing shortages, and driving economic expansion. The allocated budget for affordable housing in Lagos this year surpassed a staggering ₦67 billion, according to reports. As the need for affordable and comfortable housing intensifies, it is simultaneously fueling the luxury real estate market and triggering a surge in demand for commercial properties. Indicating that Lagos holds the nation’s economic pulse, she highlighted that real estate accounted for 5.31 percent of the state’s GDP during the Q1 of this year.
Adopting best practices can prevent disaster in the sector.
Despite the turbulent economic conditions, she pointed out that the Nigerian real estate market remains promising. Consequently, it is imperative for the government to persist in its role as a regulator and supervisor. The aim is to optimize the sector’s operations, ensuring enhanced prosperity and safeguarding the welfare of stakeholders. She expressed admiration for the state Governor, acknowledging his efforts in enhancing the executive’s role in enforcing the Real Estate Regulatory law as contained in the state Official Gazette of Feb. 11, 2022.
Under the section 6 and 7 of the law, LASRERA has been granted authorities, including the power to develop strategies for effective management of real estate transactions. Given the vast potential in the real estate industry, the risks and uncertainties are significant and can either lead to success or failure for us as participants, he emphasized. The sector can avoid disasters by wholeheartedly adopting best practices. Various professional fields adhere to proven protocols for maintaining high standards, ethical conduct, and effective operational guidelines.
State government aims to minimize risk in the sector.
However, it remains impossible to suppress the inherent inclinations of certain individuals who persistently seek ways to evade and undermine current rules despite having established regulations and principles. This presents an opportunity for regulation and adherence to bring about benefits for everyone involved. Odunuga-Bakare noted the importance of minimizing risk in housing investments for private developers and investors as a primary objective of the Lagos state government. She said a key and milestone for fostering effective collaboration in the sector is to create a conducive atmosphere for private investments.
Odunuga-Bakare demonstrated willingness to cooperate with various entities and establish guidelines that would enhance their enterprises and contribute to expanding the state economy. Dr. Ololade Abuta, the CEO of Gracias Global, urged the government to establish a more user-friendly framework for real estate agents in the region and guarantee a smooth process for documentation related to construction activities. Abuta said enforcing LASRERA’s regulations is a crucial step towards improving transparency and reliability within the real estate industry. It is imperative for real estate agents to consistently fulfill their responsibilities in order to boost the industry, he added.
Luxurious properties presence have grown in the city.
Lagos booming real estate market offers a multitude of opportunities for investing with several options in both residential and commercial properties. Recent trends in the market encompass luxurious residences, innovative smart homes, and ecologically conscious property designs. Additionally, the emergence of renowned international real estate brands has further bolstered the presence of luxurious properties throughout Lagos. Such high-end luxury property developments include the iconic Eko Atlantic City, Victoria Island, Ikoyi, and Banana Island, among others.