Posted on 24/10/2023 2:45 PM | by NaijaHouses
In the pursuit of advancing the real estate sector, experts are emphasizing the crucial need to establish a conducive operating environment. They have voiced concerns that the absence of these necessary conditions for growth has exacerbated the housing deficit, which currently stands at over 22 million.
At the third edition of the Pan-Africa Real Estate Summit, themed "Building a Better Africa: Real Estate Investment Opportunities in Africa," held in Lagos and Abuja, Mr. Tunde Obileye, the keynote speaker, led the call for action. He stressed that the government should take measures to make the real estate industry more viable by removing obstacles to its growth and restoring its former prominence. He pointed out that in the past, real estate investments were considered safe and profitable; however, the landscape has evolved significantly.
Obileye remarked, "Investing in real estate has become increasingly risky due to the fluctuating value of the naira, challenges like subpar workmanship, weak policies, and a lack of regulations, as well as declining income. The inconsistency in government policies is another critical issue that plagues the sector and requires immediate attention."
Sesi Hundeyin, a Partner at Bloomgate Solicitors, lamented the prevalent issue of land-grabbing, which continues to be a major obstacle for industry operatives. This problem discourages potential investors from participating in the sector. Hundeyin urged the government and security forces to take proactive measures to protect landowners and real estate investors.
Addressing the need for investor confidence, Osinachi Nwandem, a Senior Associate at Aluko & Oyebode firm, spoke on the topic of "Contracting Strategies for Investors and Protection for Developers." He emphasized the importance of securing investors' trust above all else. Nwandem advised developers to adopt a long-term perspective to remain resilient in the industry. He also recommended the inclusion of Price Adjustment Clauses (PAC) in agreements with clients and investors, along with a commitment to full compliance with all relevant laws and regulations, the use of qualified personnel and quality materials, a dedication to upholding integrity, and fair and ethical business practices in all dealings.