LAGOS Real Estate Player, STANLEY OBI
Mr. Stanley Obi is a prominent figure in the real estate sector in Lagos, having been active for over 13 years. He serves as the Managing Director and CEO of Salescraft Properties Limited and has emerged as a role model, corporate strategist, and exemplary entrepreneur. Since venturing into entrepreneurship and real estate investment, he has been a guiding light for young and aspiring entrepreneurs.
Known as the “Apostle Landlord,” Mr. Obi leads Salescraft Properties Limited, an innovative and rapidly growing real estate company in Nigeria. In a recent discussion, he highlighted unique challenges that have become significant issues for many developers.
Real estate developers in Lagos face numerous challenges, including high land costs, regulatory hurdles, infrastructure deficits, and volatile economic conditions. They also contend with rising construction costs, difficulties in securing financing, and risks associated with project completion and market fluctuations. However, there are additional challenges specific to developers in Lagos.
In his words: “The biggest problem we have in the real estate industry, number one, is our Customers. They buy land but often don’t develop it, leaving the land abandoned. They won’t pay for security, expecting the real estate firm that sold the land to secure it for them. They may only pay a development fee, and some don’t even pay that. While the saying goes that customers are always right, that is not the case here.
Developers also contribute to their own problems. In our pursuit of profit, we sometimes fail to tell customers the truth. We neglect to advise them to start development immediately and to take physical possession of the land right away.
Another issue is the Government. Both the Lagos State and Ogun State governments may recognize land with excision but still allocate it to someone else. We have observed this happening in Ibeju-Lekki. The government can often act as the biggest land-grabbers. There are many instances of double Certificates of Occupancy and title revocation, which can put developers in a difficult position after having collected money from their subscribers.
Lastly, I must mention the Omo Onile. They can be formidable adversaries. If you have to deal with land matters, you may find yourself battling significant issues years later. Many prominent cases resolved at law enforcement agencies like Alagbon, Panti, and Zone 2 involve disputes over land. These Omo Onile are often at the center of such disputes. If one can manage these issues properly, they can achieve success in the real estate business. However, even ten years after selling land, you might still be dealing with related problems—it’s a significant challenge.”
He also explained what makes his company unique: the difference is evident. Salescraft Properties is renowned for its exceptional service delivery and the distinctive qualities of its staff. In his words, “Wherever you encounter a Salescraft Properties employee, you can expect the same culture, the same relationships, and the same high quality of service, all contributing to a shared sense of belonging.” Within just five years, Salescraft Properties has grown into a major brand in the industry.
However, there are several other challenges facing the real estate market. They are as follows: Rapid Population Growth and Urbanization**: These factors place immense pressure on housing and infrastructure in Nigeria. While they can stimulate demand for real estate, they also highlight the need for sustainable development plans to manage growth effectively and ensure necessary infrastructure is in place.
Legal and Judicial Challenges: The legal system in Nigeria can be very slow, making the enforcement of property rights and the resolution of disputes a lengthy process. This can deter investors who are looking for a clear and efficient legal framework to protect their investments and facilitate smooth transactions.
Environmental Concerns: Environmental issues such as flooding, erosion, and climate change pose risks for real estate development. Addressing these challenges requires careful planning and investment in robust infrastructure, which can increase costs and complicate development efforts.
Access to Finance: Securing funding for real estate projects is a significant challenge. High-interest rates, stringent loan conditions, and a lack of specialized real estate financing options make it difficult for agents and homeowners to obtain the capital they need, thereby limiting the scope and scale of potential projects.
-ISAAC ABIMBADE
(08155107955)
