As Nigeria’s real estate industry continues to grow, one name stands out among the captains of the sector: Olukayode Olusanya, a seasoned entrepreneur and CEO of Oak Homes, a leading real estate development firm.
With over 15 years of experience in banking and seven years in core real estate development, Olusanya is not only shaping the future of Nigerian real estate but also positioning himself as a thought leader in the sector.
His vision for the industry is both comprehensive and forward-thinking, providing valuable insights into what the future holds for real estate development in Nigeria.
Current State of Nigerian Real Estate: A Promising but Challenging Market
The Nigerian real estate sector, though growing, still faces numerous challenges. According to the National Bureau of Statistics (NBS), Nigeria’s housing deficit stands at a staggering 17 million units, an issue that has persisted for years.
However, this deficit also presents a major opportunity for developers, such as Olukayode Olusanya’s Oak Homes, to close the gap and meet the housing needs of millions of Nigerians.
The market dynamics show both promise and challenges. In Lagos, Abuja, and other key cities, there has been a significant increase in property development, especially in the commercial and luxury residential spaces.
Yet, despite this growth, developers face hurdles related to land acquisition, regulatory bottlenecks, and high construction costs. Olusanya believes these issues can be mitigated with better government policies and streamlined regulations to encourage more local and foreign investment.
The Role of Technology in Shaping the Future of Real Estate
Olukayode Olusanya is a strong proponent of integrating technology into real estate development. The rise of PropTech (Property Technology) is one of the most significant trends reshaping the industry, enabling developers and buyers to manage properties more efficiently. In particular, Olusanya highlights the use of smart home technologies, which not only improve the living experience but also contribute to energy savings and environmental sustainability.
Additionally, the global push for eco-friendly buildings is now making its mark in Nigeria. Olusanya sees the demand for green buildings as an opportunity to lead the charge in environmentally responsible real estate development. By integrating energy-efficient designs and renewable technologies, Oak Homes is pioneering this change, creating spaces that are both modern and sustainable.
Tackling the Challenges in Nigerian Real Estate
While the future is bright, the real estate sector in Nigeria still grapples with critical challenges. One of the most pressing issues is the bureaucratic and regulatory hurdles that slow down real estate projects. According to Olusanya, land ownership complexities, long registration processes, and the multiplicity of taxes are significant barriers to growth.
Furthermore, inadequate infrastructure, particularly in key developing cities, hampers the potential for real estate expansion. Poor road networks, unreliable electricity, and inefficient public transportation systems reduce the attractiveness of new developments. Olusanya advocates for more robust infrastructure planning, especially as urbanization continues to surge in Nigeria.
Government Policy and Tax Reforms: A Game Changer for Developers
Recent tax reforms in Nigeria are set to revolutionize the real estate sector. The proposed VAT redistribution, which will give 90% of VAT proceeds to states and local governments, is a critical step toward boosting regional infrastructure development and empowering local governments to improve housing and urban development.
Moreover, Olusanya is optimistic about the government’s push for public-private partnerships (PPP) to close the housing gap. He believes that collaboration between the government and private developers, like Oak Homes, will enable the creation of more affordable housing units, thus addressing the needs of Nigeria’s growing middle class and low-income earners.
Investment Opportunities and Foreign Interest
With Nigeria’s real estate market increasingly attracting foreign investment, Olusanya sees enormous potential for growth in both local and international markets. Oak Homes has already expanded its footprint beyond Nigeria, with ventures into the UK and USA, highlighting the company’s commitment to global real estate development while contributing to Nigeria’s economic growth.
Olusanya also points to emerging markets within Nigeria, such as Ibadan, Owerri, and other regional capitals, where real estate opportunities are abundant. As these cities continue to grow in population and economic importance, they present attractive investment opportunities for developers and investors alike.
Affordable Housing: A Focus for Oak Homes
The divide between luxury and affordable housing remains a key issue in Nigerian real estate. While luxury developments continue to dominate the market in cities like Lagos, there is an urgent need to address the housing needs of Nigeria’s low- to middle-income earners. Olusanya’s Oak Homes has been actively involved in developing affordable housing units, aiming to close the housing deficit gap with accessible pricing strategies.
Olusanya advocates for greater government involvement in providing financing mechanisms for affordable housing, such as the Family Homes Funds, which aims to make homeownership more accessible to Nigerians. This, combined with support from the private sector, will play a pivotal role in creating a more balanced real estate market in Nigeria.
Corporate Social Responsibility and Community Impact
Olusanya understands that real estate development is not just about building structures—it’s about building communities. Oak Homes has made significant investments in community development, creating jobs, improving local infrastructure, and providing support for social welfare programs. This commitment to corporate social responsibility (CSR) not only enhances the lives of Nigerians but also strengthens the relationship between developers and the communities they serve.
The Future: A Vision for Nigerian Real Estate
Looking ahead, Olukayode Olusanya is optimistic about the trajectory of Nigerian real estate. The combination of technological advancements, government reforms, and private sector innovation will continue to drive the market forward. Olusanya believes that within the next 5 to 10 years, Nigerian real estate will become a major player on the African continent, attracting both local and foreign investments, creating thousands of jobs, and helping to build a more sustainable future for all Nigerians.
As the real estate market continues to evolve, Olukayode Olusanya and his company, Oak Homes, are well-positioned to lead the charge in shaping the future of Nigerian real estate.