Industry Insiders Propose Tactics to Enhance Real Estate Growth
Members of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) are advocating for a comprehensive review of ethical standards to align with current technological advancements and the evolving requirements of public institutions in business transactions. The call for this update came during a Mandatory Continuing Professional Development (MCPD) session organized by the Abuja branch.
At the meeting, estate surveyors and valuers emphasized the importance of incorporating risk identification, analysis, avoidance, reduction, and management into feasibility and viability appraisals for real estate development. They stressed the need for thorough land titling, extending up to the Certificate of Occupancy, to streamline the process of real estate development.
Additionally, the professionals urged increased advocacy to both the government and the general public on the critical role of involving members throughout the entire real estate development value chain. They also highlighted the necessity of reinforcing the mortgage foreclosure law to ensure a more robust regulatory framework.
During the discussion, experts pointed out financial constraints in real estate development, including the disparity between the reported lending rate (18%) and the actual lending rate (over 30%). This high interest rate hinders developers, as real estate development demands long-term funds with low interest rates. The resulting oversupply in the market leads to a substantial stock of unsold properties.
Chairman of the Abuja branch, Adebanjo Adeleke, identified major challenges in real estate financing, such as the limited capacity of mortgage and commercial banks, high interest rates on mortgage loans, difficulties in loan approval and acquisition, the unsecuritization of the capital market, and challenges in obtaining property titles. He emphasized the need for effective business strategies to overcome these obstacles.
Addressing the theme, 'Business Strategies in Curbing Financial Constraints in Real Estate Development,' Registrar of the Council of Registered Builders of Nigeria, Adetunji Adeniran, highlighted the significance of understanding finance basics, entry and exit concepts, assets classification, and monitoring to identify and address underperforming assets.
Dr. Emmanuel Mark, Chairman of the National MCPD Committee, stressed the importance of estate surveyors and valuers embracing these business strategies to navigate economic downturns and enhance resilience. NIESV President, Johnbull Amayaevbo, encouraged participants to leverage the shared knowledge to improve practices and contribute to property development in the country.