Real Estate Investment from a Project Management Perspective
CategoriesReal Estate

Building Wealth in Lagos

Real estate investing has long been a cornerstone of wealth creation, and in a dynamic city like Lagos, the opportunities are immense. In a recent presentation to the Nigerian Society of Engineers, Lagos Branch, Mr Jibunoh highlighted the transformative potential of real estate investing in Lagos, offering insights that are both educational and actionable for industry stakeholders.

Lagos: A Hub of Opportunity

Lagos is not just Nigeria’s economic powerhouse; it is also one of Africa’s fastest-growing cities. Ranked as the 19th best city to visit in the world by Time Out magazine in 2024, Lagos boasts a vibrant economy, a thriving real estate market, and a GDP that contributes over 20% to Nigeria’s total GDP. The city’s real estate sector has even displaced oil and gas as Nigeria’s third-largest sector, with a projected market value of $2.61 trillion by 2025.

Areas like Lekki, Victoria Island, and Ikoyi have emerged as real estate hotspots, with the Lekki corridor being hailed as the fastest-growing real estate hub in West Africa. With developments such as the Lekki Free Trade Zone, a new airport, and a seaport, the region represents a blank canvas of endless potential.

Best Practices in Real Estate Investing

To harness the growth potential of Lagos’ real estate market, investors must adopt best practices that ensure sustainability and value creation. Here are some key principles:

  1. Planning, Quality, Management, and Maintenance:
    Successful real estate projects begin with meticulous planning and a commitment to quality. Effective project management ensures that resources are optimized, timelines are met, and budgets are adhered to. Post-construction, a robust maintenance culture is essential to preserve the value of the asset.
  2. The 3Cs: Competence, Character, and Courage:
    These core values are non-negotiable for professionals in the real estate sector. Competence ensures technical expertise, character builds trust, and courage drives innovation and resilience in the face of challenges.
  3. Collaboration and Stakeholder Management:
    Real estate development is a collaborative effort involving multiple stakeholders, including government agencies, developers, architects, engineers, contractors, and end-users. Respect for each stakeholder’s role and contribution is critical to achieving successful outcomes.

The Role of Project Management in Real Estate

Project management is the backbone of successful real estate development. It transforms raw materials into valuable assets by adding value at every stage of the process. At APD Project Management Limited, we emphasize the importance of the following project management principles:

  • Scope Definition and Feasibility Studies: Clearly defining the project scope and conducting thorough feasibility studies ensure that the project aligns with market demands and financial goals.
  • Stakeholder Management: Effective communication and collaboration with all stakeholders are essential for smooth project execution.
  • Procurement and Operations: Strategic procurement and efficient operations management minimize costs and maximize efficiency.
  • Handover and Maintenance: A seamless handover process and a focus on long-term maintenance ensure that the asset continues to deliver value.

Our APD Academy reinforces these principles through training programs that emphasize management skills, emotional intelligence, and practical experience.

The Benefits of Real Estate Investing

When best practices are followed, real estate investing yields significant benefits:

  1. Wealth Creation: Real estate is a tangible asset that appreciates over time, providing long-term financial security.
  2. Economic Growth: The real estate sector drives economic growth by creating jobs, stimulating demand for construction materials, and contributing to GDP.
  3. Community Development: Well-planned real estate projects enhance the quality of life for residents and contribute to the development of sustainable communities.
  4. Passive Income: Rental income and Real Estate Investment Trusts (REITs) offer opportunities for passive income generation.

The Future of Real Estate in Lagos

The future of Lagos’ real estate market is bright, but it requires a commitment to excellence and sustainability. By prioritizing education, urban planning, and public-private partnerships, we can address challenges such as housing deficits and infrastructure gaps.

At APD Project Management Limited, we are committed to driving this transformation. Our expertise in project management ensures that every project we undertake delivers maximum value to investors, stakeholders, and the community.

Conclusion

Real estate investing in Lagos offers unparalleled opportunities for wealth creation and economic growth. By adopting best practices and leveraging project management principles, we can unlock the full potential of this dynamic market.

CategoriesBuildings Construction Real Estate

THE IMPORTANCE OF PROJECT MANAGEMENT SYSTEMS IN THE CONSTRUCTION INDUSTRY

One of the first sectors to be project-based in nature is the building industry. The Egyptian pyramids from the third millennium B.C. and the Roman aqueducts built in 312 B.C. that carried water to cities and industrial locations are two well-known examples. All of these historic buildings have one thing in common: they all organize, plan, coordinate, and manage people and material resources with the express purpose of completing the projects.

Environmental and cultural factors have always had an impact on construction. For this reason, the architectural design of ancient Nigeria mirrored the customs of the local populace. Building style was impacted by surroundings as well as culture.

These days, similar materials are commonly available due to modernity. Bricks, glass, and tiles are among the materials that are either imported or produced locally. Nigeria’s building sector has made an effort to adhere to international norms.

From crudely hewn stones to ones that are exquisitely polished to smart houses that obey commands, they have progressed. In a same vein, the economy has changed as a result of this evolution in construction. A good change, as before the pandemic, building made about 3-6% of Nigeria’s GDP. In 2022, the Nigerian construction market had a valuation of $135.9 billion. In 2024–2027, the market is expected to grow at an annual rate of growth of more than 2%.

The purpose of this blog post is to explore the importance of project management systems in the construction industry and how despite all the doubts, it holds an evidently promising future.

The importance of Project Management Systems

Due to the increased demand for construction practices, there is a greater requirement for effective planning and resource management throughout the building process. The construction industry professionals are in charge of making decisions and may also participate in construction practice as Project Managers (PM). The utilization of construction project management systems is directly related to the construction industry’s success in Nigeria.

The notion of project management is not a novel one to the industry at large, having been implemented in various domains across the country, including the public sector. Both traditional and contemporary project management methods and instruments have made work on completed projects easier. Building construction projects, both public and private, rarely get finished on schedule, within budget, and with the required materials and quality. Consequently, one method to prevent these industry-wide diseases is through enhanced project management delivery system practice.

So, what project management systems have worked?

Within the last decade of these controversies, research has shown an improvement in project management systems as companies have began adopting information and communication-based methods as well as better sourced materials and professionals to ensure the longevity of a building’s structural lifespan and one of these is the APD Project Management Limited.

The Firm APD is a partnership between Africa Plus Fund, the Largest Naira Infrastructure Fund in Nigeria and Dolphin works Limited, an Indigenous Construction Management firm with 25 years’ experience in the local construction market. It provides services of project, construction and development management and execution, and has embarked on the quality of the Nigerian construction industry through the overseeing of million naira projects.

One of such is the Paramount Twin Towers, completed in 2022 and located in Lekki, just a few steps from the Atlantic. It redefines luxury with a mix of simple communal living and breath-taking scenery, right at the very heart of one of Lagos’ most premium locations.

From studio apartments, to a maisonette; from three-bedroom apartments to a penthouse, Paramount Twin Towers offers the very essence of living with its living units. Motivated by an aim to redefine refinement, this cutting-edge architectural project presents a fresh perspective on opulent living with incandescent gardens and top notch security.

The APD Project Management Limited has also embarked on other various remarkable projects such as:

1. G2 BY CRUXSTONE: An ultra-luxury residential development of a stunning 17-floor architectural masterpiece nestled on Glover Road, Ikoyi- one of the wealthiest neighbourhoods in Lagos, also popularly known as home to the most affluent strata. It offers the highest class of sophisticated urban living and exclusivity with a choice of spacious luxury apartments, lavish duplexes, and presidential penthouses.

The project consists of 4 Bedroom Maisonette, 5 Bedroom Maisonette, and 6 Bedroom Maisonette with a high-quality finish, crafted with modern leisure design facilities and amenities to offer residents a very comfortable lifestyle.

2. Nautica Rise: A mixed-use prime waterfront development set to transform the real estate landscape into a world-class resort and tourist destination. It holds a prime position within the sprawling waterfront community at Oniru, Lagos, with 0.23km overlooking the Atlantic Ocean.

With quick and easy access to top leisure and recreational centres, Nautica Rise boasts of exclusive access to beautiful sandy shores of the Atlantic Ocean and ease of connectivity through well-established road networks to major shopping malls, private beaches, public transport links and schools.

3. The Nexus: Located at Adebisi Omotola Close, Victoria Island, behind the new Zenith Bank multi-storey carpark, The Nexus redefines the neighbourhood with raised standards. With easy accessibility to trendy lifestyle, relaxation centres, malls, quality healthcare and schools, The Nexus is an ideal place to live and flourish.

4. The Autograph Plus: The Autograph Plus, located at Adeola Hopewell Street, Victoria Island, is a 22-storey commercial development consisting of 86 unit of apartments ranging from stylish Hotel Suites, Studios, 1 Bedroom Apartments and Lofts, Luxury 2 Bedroom Apartments, 3 Bedroom Apartments, and 4-bedroom Maisonette which have all been beautifully crafted.

5. Iconic Towers: A cutting-edge architectural landmark located at Sinari Daranijo Street, Victoria Island, Lagos, Nigeria. The Iconic Towers comprises of 4 blocks of beautifully crafted luxurious towers of 12 floors each (The Silhouette, The Portrait, The Cynosure and The Nexus), and a signature hotel apartment tower, The Autograph, set to redefine the City Skyline. The multi-story residential dwelling exudes class, taste, and a high standard of living, giving a true definition to Luxury Lifestyle.

In conclusion, there is no doubt that there is promise of an increase in the involvement of project management systems such as the APD Project Management Limited and with an even more active introduction of professionalism and technology, the construction industry is sure to have an outstanding growth this year 2024.

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We have over 25 years’ experience in local construction market and 3 years as a Project Management Firm.

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