Managing Director, Ramos Realty, Adeyinka Ramos has called on the government to intervene in what seems to be an unending inflation trend that is affecting the growth of the sector.
He said the real estate industry was one of the most hit by the COVID -19 pandemic.
Ramos said: “The real estate industry was one of the most hit by the COVID-19 pandemic. Since the beginning of the pandemic, the industry has played catch-up and was met by inflation and ever-climbing exchange rates.
“The National Bureau of Statistics (NBS) told us that in 2021 the economy of Nigeria advanced by 4 per cent year-on-year in the third quarter of 2021, following a five per cent expansion in the previous year. According to the NBS, we recorded a 3.85 per cent growth in the second quarter of 2021 and grew by 10 per cent year on year in Q3 2021 as well as a sustained positive quarterly YoY growth trend since Q1 2021
However, despite the inviting figures, the real estate and construction industry remained low due to inflation which resulted in increased cost of construction and over-dependence on imported building materials,” Ramos said.
He therefore called on the government to look into the issue of inflation.
He noted that the prices of building materials even within the country have skyrocketed thereby making it difficult for citizens to venture into building their homes but have settled for tenancy which keeps climbing as well.
Aside from the inflationary challenge in the sector, Ramos also noted that the industry is faced with other issues such as haulage costs, the increase in the price of diesel, exchange rates, port charges for imported materials and a long list of issues affecting the sector.
Speaking on possible solutions to the fast slumping sector, He posited that diversification should be taken a lot more seriously by operatives in the real estate and construction industry while the government tackles bigger issues like inflation.
“If you look at any construction or building work today, you will find that almost 70 percent of the cost goes into the construction materials, especially iron and other materials. However, if we are able to use materials like wood for things like flooring, wall partitions and the likes, we can make the buildings cheaper and lighter,” Ramos said.