Login Register
feel free to call 09056000005

REAL ESTATE DEVELOPERS CALL FOR GOVERNMENT ACTION AMIDST INFLATION CHALLENGES

 
Real Estate Developers Association of Nigeria (REDAN), Lagos Chapter, is urging the federal government to step in and counter the surging inflation that is significantly impacting construction costs and dampening the housing sector in the country.
 
Highlighting the concerns, Bamidele Onalaja, Chairman of REDAN Lagos Chapter, highlighted that the real estate sector is grappling with escalating inflation, which is taking a toll on the industry. Onalaja emphasized that a combination of factors, including high-interest rates, volatile exchange rates, and transportation costs, has contributed to the mounting challenges faced by the sector.
 
The volatility of the country's exchange rate is a particularly worrisome issue, given that a substantial portion of building materials, over 70 percent, is imported. Onalaja cited a recent survey indicating substantial price hikes in essential building materials such as granite, sharp sand, aluminium roofing sheets, tiles, iron rods, and hardwood timber. These increases have directly impacted developers, driving up the overall cost of real estate construction.
 
 
The rising cost isn't limited to materials alone. Professional fees for real estate development are also on the rise, further exacerbating the challenges faced by developers. Recognizing the crucial role of the real estate sector in economic growth, REDAN Lagos Chapter has called on the government to take measures to mitigate the impact of inflation on citizens and industry players alike.
 
In addition to the economic repercussions, REDAN Lagos Chapter is concerned about the potential effects of inflation on housing projects, including off-plan sales. As inflation continues to exert pressure on the market, there is a need to raise awareness among potential buyers and the general public regarding the unprecedented challenges facing the real estate industry.
Onalaja appealed to government agencies responsible for economic regulation, urging them to prioritize the well-being of the public, especially given that shelter is a fundamental necessity for individuals worldwide. As the real estate sector navigates these inflationary headwinds, the collaboration between industry stakeholders and the government becomes crucial to ensure sustainable growth and development.

 

Source: BusinessDay

Similar Topics

Nigeria’s digital real estate company, Sytemap, has raised concerns over the ongoing trust...

18 days ago Read More

Governor Babajide Sanwo-Olu of Lagos State has urged for more investment to address the persistent...

18 days ago Read More

Housing sector stakeholders have raised concerns that the rising interest rates in the country are...

19 days ago Read More

Lagos State Governor, Babajide Sanwo-Olu, has emphasized the significance of innovation,...

28 days ago Read More

The Association of Private Practicing Surveyors of Nigeria (APPSN), a subgroup of the Nigerian...

28 days ago Read More

Nigeria has been admitted into WorldSkills International, marking a historic milestone in the...

a month ago Read More

The Federal Government has launched the Ministry of Finance Incorporated Real Estate Investment...

a month ago Read More

The National Board for Technical Education has inaugurated the Sector Skill Council for...

a month ago Read More

The Environmental Defense Fund has partnered with Africa Practice to combat climate change in...

a month ago Read More

The Minister of Housing and Urban Development, Ahmed Dangiwa, has reiterated the crucial role of...

a month ago Read More

The Real Estate Developers Association of Nigeria has announced initiatives aimed at enhancing...

a month ago Read More

The Global Environment Facility has approved $3.28m to tackle land degradation in Kebbi State under...

a month ago Read More

The commercial real estate market is currently grappling with several major challenges, including...

a month ago Read More

Real estate development is a key driver of economic growth in any region, and Africa is no...

a month ago Read More

The Federal Government has signed a Memorandum of Understanding with Shelter Afrique...

a month ago Read More

The Federal Government has issued a 90-day deadline for subscribers of the National Housing...

2 months ago Read More

The Minister of Housing and Urban Development, Ahmed Dangiwa, has disclosed that plans are underway...

2 months ago Read More

A real estate firm, Gestpoint Nigeria Limited, has implored the Federal Government to simplify the...

2 months ago Read More

Ahmed Dangiwa, minister of Housing and Urban Development, has said that unlocking Nigeria’s...

2 months ago Read More

Experts in the built environment have emphasized that effective urban planning and infrastructure...

2 months ago Read More