The nation’s growing housing crisis has prompted the Housing Development Advocacy Network (HDAN) to call for a state of emergency in the real estate industry from the Federal Government.
The Lagos State Government recently discovered improvised apartments beneath the Dolphin Estate Bridge in Ikoyi, Lagos, which prompted this appeal.
HDAN urged the Tinubu administration to address the country’s housing problems with greater pragmatism in a statement. The group emphasized that the 86 partitioned rooms in these under-bridge apartments, each measuring 10 by 10 and 12 by 10 feet, are rented out for an average of N250,000 per year. According to HDAN, this circumstance is a reflection of Nigeria’s larger housing shortage.
According to HDAN, the housing crisis has gotten worse as a result of the economic downturn, forcing people to live in subpar conditions.
The group also criticized the various bureaucratic roadblocks—such as multiple payments—that real estate developers must overcome in order to obtain building approvals, which impedes the supply of affordable housing. According to HDAN, this forces many developers to use deceptive methods in an effort to save money.
The statement went on, “HDAN criticizes the multiple payment requirement, which clearly acts as a barrier to the delivery of affordable housing.” This could help to explain why a lot of real estate developers use deceptive tactics and deception to cut expenses.
The Lagos State government was urged by HDAN to foster an atmosphere that is more favorable to real estate developers. The group emphasized that the country’s extreme housing shortage and poverty are vividly illustrated by the fact that people are currently living under bridges. To address this crisis and guarantee that citizens have access to decent living conditions, HDAN called for immediate government intervention.
meanwhile, earlier in the year, Real estate industry players were calling on the Federal Government to declare a state of emergency over building materials, as this is the main barrier to the country’s ability to provide 28 million people with affordable housing by 2023.
In light of the lack of an impending decline in the cost of imported building materials, interested parties are stepping up their conversations about looking into local alternatives whenever possible.
The goal is to lessen Nigeria’s long-term reliance on imported building materials by bolstering local manufacturers with financial support and other incentives to improve their production capacities.
The federal government has also been urged to develop regulations requiring Nigerians to use readily available, approved locally sourced building materials. These calls have grown increasingly loud.
Despite being more affordable than imported materials and dependable, some important local building materials in Nigeria, like bamboo and adobe, are not used extensively.
Operators have tasked the government with building more homes, ideally at all price points, as a solution to the worrisome housing deficit problem. Mr. Ambrose Osilama, a real estate developer, stated that there are chances to purchase excellent properties that satisfy the demands of modern investors, and he advised businesses to modify their growth plans in order to be successful.
The majority of real estate operators, according to Osilama, had high expectations as at last year, for 2024, thinking they could weather the current risks and reposition the industry for long-term growth and higher returns. The industry, in his words, “reluctantly accepts that interest rates will remain high.” Transaction volume is down despite available equity, and industry participants frequently cite situations where buyers and sellers are unable to reach a consensus over price because there aren’t enough sales to support pricing clarity. There is a false increase in the number of available estates because most developers lack the liquidity to develop more.
Fortunately, those who participated in this year’s Emerging Trends survey feel that the worst of inflation is over, which should provide the government with justification to hold off on raising interest rates and take action against the escalating cost of building supplies. According to me, the building material issue will only be a small issue because they can adjust the exchange rate to get to N1,235,000.
Finally, growth in Nigeria’s real estate market is expected in 2024, largely due to the industry’s profitability, the government’s expanding influence, and foreign investment. However, this will be constrained by lack of supply, fluctuations in the economy, policy development—regulatory reforms are a persistent problem in policy development—and the government’s political will to declare a national emergency regarding local building materials.
Source: PunchNG
