Friday, 24 November 2017

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UPDATE: THE BIG BANG IN THE NIGERIAN REAL ESTATE INDUSTRY – INNOVATIVE DISRUPTION

By: Lolia On: 7:24:00 am
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  • According to the United Nations report, with rapid urbanization and population growth, Africa is at the verge of a major housing crisis; up to 70 percent of Africans are projected to be living in cities and urban areas by 2050.

    Nigeria alone has a housing unit deficit of 17 million+, with Lagos already feeling the pinch due to the rapidly rising population.

    To some Nigerian entrepreneurs, this problem is a massive opportunity and they are living up to the challenge.

    Responding to the challenge in the industry, a new breed of entrepreneurs have emerged with wave making innovative ideas that are disrupting the industry.

    These entrepreneurs are majorly into real estate development. As it is in real estate development, they buy expanse of land, clear the land and sell in piece to the general public with flexible payment plans. They build for clients that have no time to handle building projects. They also build and sell brand new houses to the public and many more.

    All of these have been in the industry before now and firms have been making a fortune from them. But there is this innovation these Game Changers introduced in the industry that is really disrupting the industry, the MLM business model (redefined), a.k.a Network Marketing.

    With this model, it is no longer business as usual in the industry, where firms employ sales people to sell their properties.  This model has automatically built a formidable sales team known as Partners/Consultants, which comprises of people from all walks of life -Professionals, Entrepreneurs, Artisans, Traders, Clergy, job seekers, students, house wives …… just name it. The model is so robust that even Nigerians in the diaspora are a part of the team.

    Due to this disruption, millionaires are emerging every day! More people are becoming landlords/home owners every day! More jobs are being created every day! More investors are coming into the industry in droves and building their portfolios every day! More Professionals are earning even higher than their regular jobs every day! 

    More entrepreneurs are springing up in and outside the industry every day! Startup or expansion capital is being raised every day! More Leaders/masterminding groups are emerging every day! More students and house wives are becoming independent financially every day! What more can I say?

    To the emerging millionaires, recession in Nigeria is a folk tale. Buying of brand new cars and land/home ownership have never been this easy among these individuals. Those that have never been to any of the neighbouring African countries, let alone overseas, now make vacation trips to top holiday destinations around the world. There’s a complete change of lifestyle for these individuals in the midst of the recession in Nigeria.

    Some housewives, for instance, from the comfort of their homes, with the aid of the internet, earn even more than their fully employed husbands.  People earn huge sums while they ‘sleep’. Imagine seeing a credit alert on your phone from a real estate company you’re partnering with, without making a sale or having a prior idea of how the sale that triggered the alert came about. It’s that interesting!

    The beauty of it is that the team is being trained online and offline, depending on the firm. The training cuts across Personal development, Entrepreneurship, Finance & Investment, Social Media/ Internet marketing, Relationship, Sales, Health and many more. 

    They even teach team members, clients and prospects practical steps on how to build/own homes with little or no money. Home ownership has never been this easy!

    Indeed, the real participants of this new revolution have never known a better yesterday, as they keep growing from strength to strength in their finances, Investment portfolios, knowledge, experience, network, skills, self-confidence and more.

    The model has made everything about the industry increase in geometric progression in the past 3-4 years and the participants are getting better by the day.

    One does not have to leave his or her primary source of income to be a part of this team. All you need is interest, a smart phone, a desire to earn more and you’re good to go. You can start by selling to your world before branching out to strangers. The drive you apply to it depends on your goals in life.

    The revolutionists themselves are making whooping sums that are mind blowing. To buttress this fact, one of them was facilitating a training and was trying to unveil the plan for 2018 to the group. In his statement he said their 2018 budget for the first half of the year is more than N30b (Thirty Billion Naira). This figure can only look small in the eyes of a few Nigerians. N30b is almost the budget of some African nations, if not more.

    I think this development should serve as a market signal to other players in the industry that are yet to align themselves with this disruption. Of a truth, the heartbeat of every business is sales. Customers are the reason you’re in business. When you allow your rivals to dominate the market with a simple model you ignore, then “there’s fire on the mountain.”

    To remain relevant and have a thriving business, you are required to stay abreast with the emerging disruptive trends and reposition yourself to ride the waves.

    The traditional methods - employing sales people and media advert- alone yield little results in this new era. Using the traditional methods alone places a limitation to the growth and development of your business. I think it’s high time you have a rethink and align your business to conform with the emerging trend. Please learn from Kodak and Nokia. 

    This innovative disruption is indeed a welcome development in the Real Estate industry in Nigeria, as its beneficiaries are enormous. We are yet to see the best in the industry; from the look of things, the ‘Boys’ will keep disrupting the industry until the housing deficit in Nigeria shifts to surplus, as they are never resting on their laurels.

    I think even if the housing deficit in Nigeria shifts to surplus in their life time, they’ll still move to other countries experiencing deficit to continue their disruption.

    My Reason: They are raising more Entrepreneurs in the industry. Through their training and mentorship programs, more Real estate entrepreneurs with registered companies are springing up by the day.  Lagos alone has more than 30 revolutionists in this regard and still counting.

    What next? I think we need to better position ourselves to have a piece of the ‘cake.’ Ultimately, we need to join the crusade to eradicate the housing deficit in Nigeria and Africa at large to make the world a better place.



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