By Merit Ibe
Experts in the real estate sector have urged government to enact right policies to drive the growth of the real estate sector in Nigeria.
They agreed that the real estate and construction sectors will champion the recovery trend of the Nigeria economy if the right policies are in place.
The stakeholders, who also identified weak and unstable currency, multiple taxation, infrastructure deficit as major challenges militating against the growth of the sector, made there views known during a Real Estate Outlook 2024, themed: “Looking Ahead: Gauging Opportunities”, organised by the Nigerian-British Chamber of Commerce (NBCC) in collaboration with FIABCI Nigeria, the International Real Estate Federation.
President and Chairman of Council of the NBCC, Mr Ray Atelly noted that creating enabling environment will boost the sector’s performance and contribution to the GDP.
Barakat Odunuga-Bakare, special adviser to the Lagos State Governor on Housing, noted that the state established the Lagos State Real Estate Regulatory Authority (LASRERA) ,
to address fraudulent practices in the sector, noting that
a well regulated sector will bring opportunities and address fraudulent practices in the sector.
She called for the cooperation of stakeholders to register with LASRERA, before engaging in any property transactions in the state.
The Chief Consultant, B. Adedipe Associates Limited, Dr Biodun Adedipe, who was the lead speaker, said the sector is estimated to grow to $2.26 trillion in 2024, according yo statistica.
Adedipe described housing development as a driver of investments that stimulates an economy and serves as a major source of job creation.
He noted that Nigeria needed to stabilise the sector for growth, adding that the fact that other sectors have been growing their contributions faster than real estate was a pointer that there was room for expansion.
He noted that if the sector will grow, it means that everyone should be prepared for the growth.
The businesses should grow at the same rate or in a faster rate with the sector growth, noting that change has to take place for a better growth.
Giving the challenges, Adedipe said, business owners should identify the risks in the environment and challenge themselves on how to do things in a better way to be above board.
He advised companies and businesses
to intensify digitisation, stress test business models, assess the impact of policy shifts on assets and liabilities.
To recover and grow, he urged organisations in the sector to develop a new strategic plans with aggressive execution.
He urged businesses to invest more in sustainability and get involved with and strengthen sector advocacy.
Members, Construction and Real Estate Group, NBCC, Yomi Amoussa and Hakeem Ogunniran, said the real estate sector is misregulated.
They called for the right government’s policy to drive the sector that would generate investment.
They said there is a need to look at the opportunities and fashion ways to navigate the environment and still maximise opportunities.
Ogunniran, said 2024 in the sector, was a year of regulatory intensity, where technology would take the centre stage.
According to him, as players, due diligence and compliance should be adhered to.
On funding, he added that it was still a challenge, calling for crowd and innovative funding.
The panelists emphasised the need for a safe environment, adequate infrastructure, regulatory environment and transparency.
They lamented that inconsistent policies, unstable local currency and more have made it impossible and difficult for business to flourish and move up, adding: “We need policy from government to drive private sector investment.
“The right policies need to be put in place.
“The massive urbanization of Lagos has been a challenge and an opportunity.
Lagos is ready, we need right policies to invest. Government should not award contracts they can’t manage.
“Raw materials are imported and other bottlenecks that have hampered the growth of the sector.
We need urban regeneration to move higher.
Government should improve transparency and strengthen the laws on property, they said.
