Olubisi Shaola is a property lawyer and Lagos-based real estate developer with a dedication to making luxury homes accessible at affordable prices. Combining his legal expertise with his passion for real estate development, he brings a unique and comprehensive approach to the industry. Collaborating with renowned architects and designers to create stunning architectural designs, incorporating modern features and finishes that enhance the overall living experience; his commitment to affordability is clear in his innovative strategies and cost-saving measures. Leveraging his legal expertise and industry connections, he works closely with suppliers, contractors and financial institutions, enabling him offer competitive pricing and flexible payment plans to individuals and families. In this interview with TOBI AWODIPE, he talks about the challenges and opportunities that abound in the industry, the role technology is playing in repositioning the sector and how the current economy is affecting foreign investments from coming in.
You are a trained lawyer who transitioned into real estate; why did you make that switch?
The transition from law to real estate was driven by several factors. While law provided valuable skills and experiences, I felt a strong calling to pursue a career more aligned with my passions. Lagos offered tremendous opportunities for real estate development, with rapid urbanisation, a growing population and increasing demand for quality housing and commercial spaces. I wanted a more entrepreneurial role, allowing me to be directly involved in the creative and strategic aspects of projects. Additionally, real estate presented a path to building long-term wealth and financial independence, with high returns on investment and property appreciation.
How has the journey been so far?
The journey has been great, and like any journey, filled with ups and downs. We have navigated through various challenges but remain hopeful and resilient for the future.
You currently head Finn Grey Projects; tell us what this is about?
As chief executive officer at Finn Grey Projects, I provide leadership and direction to the organisation, making key decisions that influence operations, financials and overall performance. This involves inspiring employees to align with our objectives, identifying new business opportunities, exploring potential markets and developing strategies to drive growth. Additionally, I focus on risk management, implementing strategies to minimise potential losses and ensure the company’s stability.
What was the push towards founding a company?
I founded Finn Grey Projects because I was driven by a passion for real estate and a desire to create a business that combined my interests in property and architecture with opportunities for financial success. Real estate has always fascinated me, and starting my own company allowed me exercise creativity, take calculated risks and shape the future of my enterprise. I wanted to make a positive impact by providing exceptional service, helping individuals and families find their dream homes and offering housing solutions that meet their needs. Ultimately, my goal was not just to build wealth but create a lasting legacy in this industry.
What are some of the biggest challenges and opportunities in this sector today?
The Nigerian real estate market faces several challenges, including the high cost of land due to high demand and limited supply, especially in prime locations; infrastructure deficits, such as inadequate road networks, water supply and power infrastructure, which increase project costs; complex and time-consuming legal and regulatory issues; difficulties in accessing affordable financing due to high interest rates and stringent lending requirements; market volatility with fluctuating prices of building materials posing risks for developers; and land disputes that can disrupt projects. However, there are also significant opportunities in the market, such as the growing population driving increased demand for housing and commercial spaces, rapid urbanisation offering investment opportunities and technological advancements transforming the sector and making operations more efficient.
What strategies have you found most successful in this journey so far?
We adopted the Early Payment Incentive Model (EPIM), where we pay to vendors of building materials well in advance. This strategy secures good bargains and significantly reduces building costs by leveraging early payments to negotiate favourable terms. It also helps establish a reliable supply chain, mitigate project delays and ensure timely completion of construction projects.
How do you approach risk assessment and mitigation in this market?
To approach risk assessment and mitigation in the Nigerian real estate market, we conduct thorough market research, analysing market dynamics, economic indicators, government policies and demographics.
We perform detailed financial analysis and feasibility studies to assess the viability and profitability of projects. Legal due diligence is also crucial, involving the review of property titles, permits, licences and zoning regulations to ensure compliance. We diversify risks by investing in different types of projects across multiple locations and collaborate with experienced professionals, such as architects, engineers, contractors and legal advisors. Continuous monitoring and adaptation of market conditions, project progress and potential risks are essential to our approach.
You mentioned that funding is a major obstacle; how do you navigate this challenge?
By leveraging several key strategies to secure funding for our projects. One major approach is working with off-takers who commit to purchasing or leasing properties before they are completed, ensuring a reliable revenue stream. Additionally, we form strategic partnerships with investors who provide necessary financing for our projects. Finally, we design our projects to align with market demands, which helps attract early buyers and investors.
In what ways is technology changing the operations of the real estate sector?
Technology is transforming the operations of the real estate sector in various ways. Online property listings have increased the visibility and accessibility of properties through dedicated platforms, while virtual property tours using VR and AR technologies allow buyers explore properties remotely. Digital transactions and payments facilitate online property purchases and payments, reducing paperwork and increasing efficiency. Real estate marketplaces connect buyers, sellers and agents on centralised platforms and property management software automates tasks like rent collection and maintenance requests. Data analytics and market insights help analyse market trends and make informed investment decisions and smart home technology enhances convenience, energy efficiency and security for homeowners.
Tell us about some of your early teething problems and how you overcame?
Building a customer base and establishing trust was challenging as a new company without a proven track record. Finding skilled professionals was also difficult, requiring competitive compensation packages and a compelling company culture. We overcame these challenges by building strong relationships, providing excellent customer service, and delivering on promises.
In what way have you been giving back to society and supporting upcomers?
Beyond our support for orphanages and community development, I have started accepting speaking engagement requests to give back to society and help cultivate new talent in the real estate sector. Previously, I declined such requests due to my busy schedule, but recognising the value of sharing my practical knowledge, I have agreed to participate in speaking engagements. These opportunities, extended by various real estate training facilitators, allow me to contribute to the growth of the industry and advice newcomers into the industry. We have trained over 160 individuals in various aspects of real estate, provided choice homes for more than 60 families, and created employment opportunities for over 200 individuals within the industry.
Would you say your leadership style of staying behind the scenes is deliberate?
In 2022, we hired a dynamic social media manager who transformed our online presence. She stressed the importance of showcasing our projects and achievements online, arguing that this is the future of business operations. Previously, many of our projects, consulting for real estate awards and media engagements were not shared online, as we were achieving significant results without an online presence. While I naturally prefer a quieter, behind-the-scenes approach, I’ve adapted to this change based on professional advice. As a result, we now actively share our work online, embracing the idea that the only constant thing in life is change.
What effect is the current economic situation in the country having on your operations?
The fluctuating naira has made price pegging difficult, affecting vendors’ ability to honour prices. Despite these challenges, we maintain a positive mindset and hope for a better economy.
How is the current Nigerian fragile economy affecting the real estate sector?
The uncertainty in the economy has reduced foreign investments and increased construction costs due to inflation and currency devaluation. This has made property development more expensive and uncertain. However, the sector remains resilient and strategic measures can help it rebound.
Why do you think Nigerians in the diaspora should invest in real estate in Nigeria?
Nigeria’s growing population and rapid urbanisation create constant demand for real estate. The country’s strategic location and large consumer market attract foreign investment. Real estate offers diversification opportunities, potential long-term capital growth and passive income through rentals. Investing in Nigerian real estate also supports the country’s economic development and provides a tangible, secure investment option.
What are some of the biggest mistakes entrepreneurs make in business?
I would say a lack of proper planning, whereby they fail to develop a comprehensive business plan. Additionally, insufficient financial management, including poor bookkeeping, budgeting and financial forecasting, can lead to significant issues. Entrepreneurs often over rely on personal funds, which limits their growth potential. Many also fail to conduct adequate market research, resulting in an insufficient understanding of their target market and competition. Neglecting marketing and branding is another common mistake, as is not focusing enough on customer satisfaction and feedback. Poor networking and collaboration, as well as resistance to change and innovation, can also hinder an entrepreneur’s success.
What advice would you give to aspiring real estate entrepreneurs in Nigeria?
For aspiring real estate entrepreneurs in Nigeria, it’s crucial to educate yourself on various aspects of real estate, including property valuation, market analysis and legal regulations. Conducting thorough market research to analyse demand and supply dynamics, property trends and investment potential is essential. Building a strong network by connecting with professionals, investors and stakeholders in the industry will also support your growth. Starting small with manageable projects helps you gain experience and build credibility and developing a solid business plan that defines your goals, target market, investment strategy and financial projections is critical. Seek professional advice from lawyers, accountants and real estate consultants and embrace technology to streamline operations and enhance marketing. Providing excellent customer service by understanding clients’ needs and delivering beyond their expectations is key. Lastly, stay adaptable and resilient, ready to adjust strategies to changing circumstances while maintaining a long-term perspective.
How do you relax and recharge?
Mainly by spending time with my family, listening to music and watching football.
The post Technology is transforming, repositioning Nigeria’s real estate sector — Olubisi Shaola appeared first on Guardian Nigeria News.
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