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In a bid to address challenges militating against the progress of the real estate sector in Nigeria, legal and real estate experts in Nigeria are seeking the right policies to help drive its growth.
Speaking at the seventh Detail Business Series in Lagos organised by Detail, Nigeria’s first commercial solicitor firm specialising in non-court room practice, Andrew Nevin, partner and chief economist, PwC, said the real estate was not growing, as it should because of land registry.
Navin said, “Land registry has delayed the progress of the real estate sector. It is delaying its investment, which is costly. In Lagos, we need approximately 5 million dwellers and we are not getting them as expected as a result of the land registry.”
According to Navin, the right economic policy will go a long way in improving the real estate sector. “At PwC, we are trying to push forward the most suitable economic policy for the real estate and for the country as a whole, because if real estate sector doesn’t work, nothing else works. It should be the biggest employer,” he said.
Sonnie Ayere, CEO, Dunn Loren Merrifield, said the real estate had a whole lot of disrupting factors restraining its progress in Nigeria, especially in the area of raising enough fund to secure a house, shopping space and the likes.
“In trying to develop, it is important to know how to raise money right. One means foreign countries raise money is through the ‘Crowd funding’ where many people come together to raise money. This practice cannot be visible in Nigeria because the law is out rightly against such practice here. But we are looking for a way around such law so that it can seize being practiced in Nigeria, ”Ayere said.
The mortgage terms and agreements are also bottlenecks to eliminate in the sector, he said. He therefore advised people who embark on mortgage skill to rather go for ‘loss of work insurance,’ which to him was more suitable and affordable for those who want to secure and own a house.
The ‘loss of work insurance’ covers for a minimum of one year peradventure there are any incidences, he said, adding that in cases where people lose their jobs, it pays the mortgage for 12 months, and sometimes another six months giving them enough time until they secure a new job.
Toyin Ajose, associate partner heading Detail’s real estate and construction practice, said this was the seventh detail series but the first time to focus on real estate, adding that the theme, ’Navigating the evolving real estate marketplace – dealing with market disruptors’ was timely and apt.
Ajose said, “We try to focus on our practice areas. We look out for what is new and relevant so as to draw attention to that area so that people are positioned to benefit from the changes in the market.”
She said the issues that suppress the real estate prompted them to call in experts to speak on them.
“Some of them include, the mortgage house funding ltd and the NMRC among others. Some of the issues are tied to fiscal and monetary policies and we expect that the government will take a more progressive view in ensuring that we fix the regulations so that the market can progress,” she said.
On the purpose of the event, she said, “To help starters, what we did was spark up conversation that will position them right so that they can have a right standing in the market. Nigerian market is not isolated.
“So, in the short run we are going to be seeing sparks of these disruptions in the Nigerian market. Some of them are already happening. There are so many tech communities existing. It necessary they know this and now position themselves.”
She further buttressed that, “Detail drives forth leadership around the areas of its practice and it has looked at the landscape and discovered where real estate is heading. Some are not yet aware. So the reason is to ensure that people know where the market is going and position themselves in tomorrow’s market.”
Dolapo Omidire, founder and team lead, Estate Intel, who also spoke at the event buttressed on using data to create an efficient property market. “It is necessary to create Africans larger data base to enable investors put in fund into real sector.
“There are a number of commercial activities going on. Investors need all the information possible to take such huge steps. They need well-accessed and undiluted information.”
