•Real Estate Expert, STEPHEN OLA JAGUN, Reveals
Stephen Ola Jagun is one of the outstanding real estate professionals in Nigeria.
Currently, he is the Managing Partner of Jagun Associates. He is an Estate Management graduate with a Master’s degree in Project Management from the University of Lagos, Lagos and has over two decades of post graduation experience in practise.
When he talks others listen because of his many achievements over the year in the sector. He is a Fellow of the Nigerian Institution of Estate Surveyors and Valuers (NIESV); Registered by the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON); Member, Nigerian Institute of Management (NIM); a Certified Facility Manager (CFM) of the International Facility Management Association (IFMA) based in America, Fellow of the Royal Institution of Chartered Surveyors (RICS) of United Kingdom, and first African Fellow of the International Facility Management Association (IFMA).
He is also a Past President of the Nigerian Chapter of the International Facility Management Association (IFMA). He an IFMA International Qualified Instructor and an international conference speaker. Awarded the 2015 IFMA International’s Distinguished Member/Professional of the Year Award.
A few days ago, he spoke to Isaac Abimbade on many real estate issues and what we should expect from the sector this year.
How will the forthcoming election affect the real estate sector?
We need to be extremely careful in Nigeria so that we don’t heat up the polity. Peace is all we need. When there is peace there will be progress and things can go on smoothly. In the other climes when they want to have elections, especially in America and UK, they campaign with issues bothering the people and they don’t do personal attacks. I came across a quotation recently that really touched me and it says “great leaders don’t set out to rig a leader; they set out to make a difference”. It’s not about the role but it’s about the goal. Unfortunately, the people we have now are about the role and that is why you see them moving from one party to another.
The foreign investors are not worried about who becomes the president but about the policy on the ground.
If they dont heat up the polity real estate will keep thriving in Nigeria because it is of pride for average Nigerians to want to own their own house. And that helps the real estate a lot. Unfortunately, we don’t have a good system for this to thrive. We don’t have a good mortgage. If we have a good mortgage in place, I’m sure it will take care of corruption. The election should be as peaceful as possible so that there will be confidence in the economy. There are parts of the country today if you ask an average Nigerian to go and invest there, he will say no. Can you go and put your money in Maduguri? Because the place is not safe for business. There are people now resigning from their jobs.
How do you think real estate will fare if the fuel subsidy is removed?
The fuel subsidy only benefits some people. The real poor people are in the villages and they don’t have cars or generators. These rich people have 20 cars. The government should subsidize agriculture. This will benefit everybody. Diesel is what really has impacted on the people not petroleum. And if rail is working, people can also take a rail especially when they are traveling long distance and they will arrive in the office quickly and without traffic.
If they remove subsidy on petrol today, yes it would affect the real estate sector but things will stabilise and we would find common ground.
How does “Japa syndrome” affect the sector?
Majority of those who are migrating now are our best hands. Some of them are the people developers leverage on. And some of these people work in the financial sector, oil companies and some of these people buy property from real estate developers. Now that they are leaving the country, who will now buy from them? So it’s going to affect them. The sector will feel it. It’s going to affect developers because those who are above that limit can build their own and those below that limit can’t afford it.
But another way it will have good effect on real estate is, for those who have property and they want to sell before they travel because many of them are desperate to have funds to travel. So if they see anybody who wants to buy their property worth 60 million naira for 50 million, they will quickly sell it.
And for those who are in the diaspora, because our currency has dropped in value, it’s easier for them to buy properties here in Nigeria. But will wish those who are migrating all the best.
What will be your advice to those who want to invest in real estate and what kind of investment will you suggest to them, sir?
First, the fact that our currency is losing value is an indication that it’s the best time to invest in real estate because some of these developers took loans from banks and they are finding ways to refund banks the loans. They are under pressure to offload them. Another one is that, buy a piece of land and building materials and start building. It may look far away but in the next few months, you would have finished the house. And Nigerians love to have a roof or house they can call their own.
So it’s the best time for those who want to invest in the sector. They can buy property from people who are migrating or buy from the developers or start building gradually.
Are you saying your views on real estate are generally positive?
Yes, it’s very positive. We just need to engage professionals in the area to invest. Before it used to be short let apartment business but it’s now getting saturated. So over time now prices will drop. Although some people have made their money in short letting. What you are supposed to make in annual rent, you have made it in 3 months. Now we have a lot of people who are into the short let business. Once I come to inspect your own and it’s not up to the standard I will move to the next one. So it’s now going to be a market for the strong. So you need to get a professional to help you decide what to do to guarantee income.
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