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By Maduka Nweke
The Managing Director and Chief Executive Officer, Metro & Castle, Adekunle Abdul has projected a bright future for real estate and other businesses, noting that growth is on the horizon despite ongoing economic difficulties.
He highlighted the sector’s potential for recovery, driven by resilience, strategic planning and innovative solutions.
In a recent interview with Daily Sun, Abdul did not foreclose the recovery of the real estate sub-sector and called for better strategy to stay strong in the business amid persisting headwinds.
Journey so far
Ultimately, five or six years ago, we had a vision to build our own community. Within that vision, we developed different arms. We are not just a real estate company; we are community developers. By community developers, I mean we include retail stores, supermarkets, sports centers, and even partners who operate abattoirs. If you buy a cow, they clean it for you fresh. These are all integrated into the community. Real estate is just one arm of what we do.
Over the last five years, our goal was to deliver 300 housing units. Unfortunately, COVID struck for a year and a half, and we were able to deliver only 240 units, falling short of our target. However, we set a new target of 500 units. This year, we have already completed 50, taking it slowly due to economic challenges. We are avoiding excessive credit exposure and working within our scope while leveraging brand integrity. With this approach, we achieved our first milestone of 50 units this year. Next year brings new goals, and as you can see, next year’s project is already underway.
Experience in 2024
This year has been tough, filled with unexpected challenges. Forecasts rarely matched reality. As a real estate professional, construction depends heavily on accurate figures. Missing them means missing the business entirely. Despite these hurdles, we managed to maneuver through obstacles, and all the projects we set out to deliver this year have been completed.
This project (pointing to ongoing construction) is our last for the year. Other completed projects include over 32 apartments and 16 units of terraces. Year 2025’s project has already started, with block work progressing at the back.
Coping with economic challenges
The secret to our success lies in brand building. Regardless of the economic situation, people always need shelter. During tough times, they gravitate toward trusted names. We leverage our brand integrity, delivering exactly what we promise. Based on referrals and trust, buyers are confident their investments are safe with us. Out of the 48+ units we launched this year, only five remain unsold.
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Expanding to the mainland
Yes, I’m from the mainland—I grew up in Ojuelegba. However, community development goes beyond simply building houses. It requires a large landmass and takes 7–10 years to build a full-fledged community. While expanding to the mainland is possible, we remain focused on our current environment, where we’ve only utilized 40% of the space.
CSR
We take corporate social responsibility (CSR) seriously. This year, we invested N150 million in CSR initiatives. For instance, we recently gave away a house to a prayer partner. We’ve also donated 15 high-capacity solar streetlights and opened a 150-capacity training center for youth. The center offers free real estate training for community members twice a month.
Tinubu’s administration and real estate
I believe the president is doing his best. The economy has been in shambles for years, and rebuilding takes time. Despite challenges, we’ve seen positive signs such as consumer credit and mortgage initiatives. These changes have impacted real estate, particularly off-plan sales. To navigate this, we fund projects internally up to 50–60%, ensuring cost certainty before marketing them.
Mortgage system in Nigeria
The mortgage system is functional but not at full capacity. Single-digit interest rates are essential to encourage uptake. Real estate is a major economic driver, providing employment, boosting factories, and generating revenue. A stronger focus on mortgage systems could unlock the sector’s potential.
Dollarization in real estate
While we cannot reject foreign currency legally transferred to domiciliary accounts, we ensure conversions are done transparently at the current exchange rate. Diasporas are significant buyers in this market, and foreign currency inflows benefit the economy.
Sales performance
Our turnover remains strong. While we sell fewer units, higher prices maintain profitability. For example, four-bedroom units that sold for N80 million now sell for over N100 million. Despite challenges, we’ve sustained our growth and success.
