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
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.