•Real Estate Player, BASHIR JIMOH
Bashir Jimoh has become one of the most active and outspoken real estate players Lagos. He constantly speaks about issues affecting the growth of real estate in Lagos and Nigeria, at large. He’s one of the finest in the sector who knows his onions.
He is the Managing Director of Bashmoh Homes, the company he floated about 10 years ago to bridge the deficit in the Nigerian Housing sector.
The company is also into estate development, mortgage advisory, building engineering and consultation, property leasing and letting, and general land consultation.
Last week, he spoke with City People ISAAC ABIMBADE, about many issues affecting the growth of real estate. He spoke about the current happening in the sector as well. Below are excerpts of the interview.
Do you also believe like some of your colleagues in the sector that real estate will continue to receive significant boosts as the 2023 election draws nearer?
It’s normal in this period. It’s normal that the economy will always slow down in the election year. Whenever there’s an election in any country, certainly economic activity slows down. However, real estate is a peculiar sector because of the high recovery rate.
The recovery rate of real estate during fell in the year but it has recovered fully as the second-largest sub-sector after oil and gas.
Because of the current naira devaluation going on in the black market when it comes to naira/dollar, most of the Nigerians in the diaspora will still bring in funds and Nigeria’s real estate is the most profitable you can think of across African countries.
Secondly, Nigeria earns between 45 to 55 billion dollars and India earns about 89 billion dollars in diaspora remittal. Nigeria’s diaspora remittal last year is between 20 to 25 billion dollars and 90 per cent of this money goes into the real estate. People send money from different parts of the world. Some of these people buy land and houses.
So you are saying the political parties’ primary elections won’t hurt the real estate business?
Not at all. One thing Nigeria has succeeded in doing is its balance in the polity. Gone are the days you expect coup. I think our political class are beginning to get things right. PDP have resolved the election issue, like the APC. I have confidence in Nigeria. I believe in Nigeria’s dream and also believe we can collectively develop this country together.
In the last few years, a lot of businesses have gone down the drain because of the naira to dollar rate but the real estate sector of the economy is still very strong. Are you one of those who believe that real estate is the surest way of investment?
Yes, I believe that real estate is the surest. Let me buttress my point with the statistics of the National Bureau for statistics which believes that it is only real estate that’s grown between 2016 to 2021 and during this period, the real estate grew 5,400 per cent. This is a phenomenon. Even oil and gas didn’t grow at that rate.
And the main driver of real estate in Nigeria is two things. One, Nigerians see living in your house as a means of self-actualization.
Nigerians abroad, people who have sent their children abroad and the people who are working there will be able to buy property at home. And these are the two driving forces affecting the real estate sector.
Nigeria is not a mortgage country. Nigerians in Nigeria don’t see a mortgage as a means of owning a house
Before this government came on board, there were better real estate activities and transactions in the sector. Can you tell us why or reasons the real estate is a bit slow under the present government?
What happened in the Nigeria real estate has two folds.
During the Jonathan government, I can tell you that Nigeria’s real estate was under tutelage because most of the real estate firms are under 10 years. We are now in a stable period. We have succeeded in restructuring real estate and putting it into the Nigeria financial sector
Things have changed in Nigeria’s real estate sector. Before the expiration of this government, I know about 2 to 3 real estate firms that are going to raise equity in the capital market. This is the first time in the real estate sector. Nigeria stocks have also recognised real estate and by the time we get approval on real estate licensing by then I think the real estate would be able to achieve a lot. What we are looking for now is a regulation or regulations that will unlock the potential in the sector.
We just concluded a real estate workshop by the world bank. We had serious discussions. Even the world bank attests to the fact that Nigeria’s real estate has potential it’s a phenomenon.
How can you compare the Lagos and Abuja real estate market?
A whole lot of difference. I work from Abuja every Thursday. Both Abuja and Lagos are different paces of real estate development. In Lagos, real estate is privately driven and the regulations have got to a level government has started issuing license to private owners. While in Abuja, individuals are still running privately. And access to funding is low and real estate is really expensive when compared to the capacity there.
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