Inflation, Market Volatility, Talent Gaps Weigh on Real Estate Sector – Olugbami

Real estate expert and Chief Executive Officer of 1159 Realty, Comfort Olugbami, has highlighted major challenges confronting the property sector, including rising inflation, fluctuating interest rates, talent shortages, and changing investor expectations.

Olugbami noted that these economic and structural pressures are forcing developers to rethink traditional business models, diversify operations, and adopt innovative strategies to stay competitive in an increasingly complex environment.

According to her, one of the biggest challenges in recent years has been navigating macroeconomic instability while maintaining project timelines and quality standards. She explained that the volatility in interest rates, combined with the rising cost of construction materials, has pushed many firms to take greater control of their value chains.

“The biggest shift for us has been diversification and increased control within the value chain. Rather than remaining purely a real estate services company, we expanded into construction and development. This allows us to respond more effectively to economic changes,” she said.

She also pointed to a noticeable shift in investor behaviour, with more buyers prioritising returns over long-term asset holding.

“Today’s investors are more focused on measurable returns and consistent income, rather than simply holding properties over time,” Olugbami added.

This shift, she explained, is influencing how projects are designed and delivered, with developers now focusing on high-yield segments such as student housing and professionally managed residential apartments.

Beyond economic concerns, Olugbami stressed that sustainability is becoming a key factor shaping the industry. She said developers are under increasing pressure to adopt environmentally responsible building practices due to climate change and energy challenges.

“Sustainability is no longer optional; it is essential. Developers must design buildings that are resilient, efficient, and environmentally responsible,” she said.

Despite the cost implications, she noted that firms are finding ways to balance sustainability with affordability by incorporating solar energy systems, efficient materials, and smart building designs to reduce long-term operating costs.

Olugbami also highlighted the growing role of technology in transforming the traditionally conservative sector. She said the adoption of PropTech solutions, digital platforms, and automation tools is improving efficiency and enhancing customer experience.

“At 1159 Realty, we have developed internal platforms that allow clients to monitor their investments while enabling our sales teams to track performance digitally,” she explained.

She further identified human capital development as a critical issue, noting that attracting and retaining skilled professionals remains a challenge in a competitive market. To address this, she said the company has prioritised training and mentorship programmes, even at the risk of losing talent.

“It would have been easier to limit investment in people, but we chose to build a culture focused on development and continuous learning,” she said.

Despite these challenges, Olugbami expressed optimism about the long-term prospects of the sector, citing Africa’s rapid urbanisation, population growth, and housing deficit as key drivers of future demand.

She added that over the past five years, the firm has focused on bridging the gap between capital-intensive real estate investment and younger investors, making property ownership more accessible.

Projects such as Dias Crest, a smart student housing development in Kwara State, and Villa Manor, which offers flexible land ownership plans, were highlighted as examples of innovation aimed at expanding access to housing and investment opportunities.

Looking ahead, Olugbami said the company plans to scale operations, expand into new regions, and strengthen its presence in key markets, including Lagos.

“Our goal over the next five years is to become a leading real estate brand, driving innovation and delivering modern housing solutions,” she said.