Experts seek incentives for private developers in real estate sector
Desirous of a vibrant real estate sector in the country, experts have canvassed incentives for private developers in the areas of financing and land acquisition.
The experts, say such intervention by government in the sector could boost the Gross Domestic Product (GDP) and create more employment opportunities.
These was part of the views at the 5th Edition of the Real Estate Unite Conference 2016, tagged:” Filling the G.A.P.S”(Government Gaps; Access Gaps, Private Sector Gaps and Strategy Gaps) organised by 3Invest Limited at the Eko Convention Centre, Lagos.
Speaking at the Plenary Session, Lead Partner, Detail Commercial Solicitors, Ayuli Jemide pointed out that with the important roles of the sector in Nigerian economy, which include accounting for 7.6per cent of GDP at the second quater of 2016, the real estate and construction could create millions of direct/indirect jobs if factors militating against its growth are urgently addressed.
President of Real Estate Developers Association of Nigeria (REDAN), Ugo Chime noted that there was the need to subsidy the cost of land as well as provide free access to land by engaging the state government and all other stakeholders to agree on certain incentives, which they would benefit.
“Let them say for example, sign an agreement with the state government that we are investing certain amount in your state as an incentives for them to make the necessary changes in the land administration in their respective states”, he said.
For the Head Real Estate Finance, Stanbic IBTC Bank, Nigeria, Eseosa Ekhaguere, government must make it easier to access construction financing and accessing planning permit.
He added that there is the need for clarity as to how long it would take to get the planning permit and putting in place intervention funds for housing like the norms in the Power and Agriculture sector, stressing that housing is a very essential human need, as everything in life starts and ends with real estate.
“The issues affecting the development of affordable housing goes beyond want a single bank can do, there are a number of reforms that government needs to put in place that would support lending to affordable housing; the legislation around the land use act, the issues of foreclosure laws, high interest rate regime, and the knowledge gap even in the mortage industry. ”
Chief Executive Officer of Nigerian Mortage Refinance Company, (NMRC), Prof. Charles Nyangete said the institution was resolute in breaking down barriers to home ownership through various approaches such as uniform underwriting standard – industry standard for mortgage origination, new debt instrument (bond issue) to increase capital market access and supplying long-term debt, deepening mortgage coverage through providing liquidity to the secondary mortgage market.
The convener of the conference and Chief Executive Officer of 3Invest Limited, Ruth Obih appreciated all participants for committing resources to promote the real estate industry.
She said: “There is hope for achieving sustainable growth in the years ahead despite present challenges.”