More than 70% of factors militating against real estate and property development in Nigeria owe much to quackery and weak regulations
By Eddy Ochigbo
It is fair to state that charlatans and quacks in the real estate sector are known to have contributed immensely to nation’s incessant building collapses, a disturbing trend that has not only worsened the deficit in housing infrastructure but has also discouraged genuine investors in the industry.
Nigeria’s real estate business is replete with fraudulent activities. More often than not, prospective land and property owners are swindled by scammers who pose as property owners or agents. However, industry watchers believe that with due diligence and due process, people can acquire properties without let or hindrance.
A source familiar with the sector, put solution to the twin issue of housing deficit and affordability this way: “Availability of land has been a great challenge. Also, there should be fast and smooth processing of land acquisition and approval. Cost of land should be kept as low as possible and government should be able to meet developers’ needs and design policies that would help them undertake affordable housing projects.
“Government should also provide access to low-interest loans or tax rebates for developers who want to provide low-cost housing for the general public and more especially for low-income earners who cannot afford expensive houses. Integrity and service delivery during and after transactions should be paramount when it comes to property acquisition. There are lands for all categories of persons and buildings that are affordable for prospective buyers so long as sanity is maintained in the system.
“The truth is that most developers are not engineers and instead of them to take professional advice they most times want to cut cost which often leads to building collapse. Developers should not compromise their project and also not place profit above human lives. Government too should ensure that projects are properly monitored in tandem with global best practices. Stakeholders should develop passion for high standard by employing the services of professionals”.
It is imperative for those hoping to own a house of their own to consider budget when buying a land because it does not matter if one is determined to buy a land in any part of the country; what most matters, is knowing one’s financial capacity. It is not about just having the desire to buy a land, the question is, do you have the financial capacity? No matter the amount one might have saved, it is always important for one to do a price survey on the cost of buying a land and the extra expenses associated with it, including the location of the land.
Conservatively, more than N2 trillion have gone down the drain in property scams in Lagos, Abuja and Port Harcourt alone. Fake estate agents and fraudsters who engage in sharp practices are on the prowl. Fraudsters are numerous in the property market, capitalizing on the nation’s weak regulations and high level of corruption in the country.
A Kaduna-based property developer who pleaded anormity believes that real estate investment enhances cash flow; profitable income and provides financial freedom for landlords and landladies.
He went on: “Innocent Nigerians keep falling victim because lands and buildings are essential needs. So it is important to investigate the agents and do a background check on them before investing and it is also important to investigate the land you intend investing in, its geology, neighboring properties and planning rules.
“But availability of land has been a great challenge, faster and smoother processes for land acquisition and approval and the cost of land should be kept as low as possible and government should be able to meet developers need by implementing policies that should help them undertake affordable housing projects and provide access to low interest loans or tax exemptions for the provision of low cost housing for low income earners.
“With political will and the right policies in place, a bright future awaits real estate in Nigeria especially if investors tap into the green housing which is a type of housing built to conserve energy or water, improve indoor air quality, use sustainable, recycled or use materials to produce less waste. It is a type of housing which employs multiple strategies such as energy efficiency, water conservation, responsible use of materials and resources in order to alleviate the negative impacts for environmentally friendly housing infrastructures”.
A report by World Bank estimates that Nigeria still has a housing deficit of about 17 million units which would require over $390 billion to fix. In spite of several federal government’s interventions in the housing sector, the deficit is not abetting.
Accessibility and affordability, without corresponding actions to match the growing quest to house the urban and rural poor, continue to rear their ugly heads. The need for increased government intervention is essentially derived from what some stakeholders call the imperfections of the property sector – the protection of vulnerable communities and the provision of enabling environment for the sector flourish are key.