Experts in the real estate sector have said that the massive investment in urban regeneration, embracing of technology and ending the existing multiplicity of taxes is key to boost affordable housing supply and growth.
They also noted that a new focus on vertical developments would help generate more green areas, affordable units to cushion the effect of undersupply of buildings in the country.
The experts spoke at Real Estate Outlook 2024, forum entitled: ‘Looking Ahead: Gauging Opportunities’, organised by Nigerian-British Chamber of Commerce (NBCC) in collaboration with International Real Estate Federation (FIABCI), Nigeria. The forum was to assess the real estate situation in Nigeria in the past one year, analyse and measure available opportunities in the sector.
Leading the call, the President, International Real Estate Federation (FIABCI) Nigeria Chapter, Mr Gladstone Opara, explained that renewed focus on urban renewal and slum regeneration was crucial with constant need for expansion and provision of quality housing.
He expressed concerns at the level of uncertainty that has engulfed the business world, triggered essentially by inconsistent government policies, political instability, insecurity and unstable local currency, which have made it difficult for a number of businesses to draw up workable long-term plans and capital for operations.
Opara explained that the government needs to create policies that enable the private sector to provide infrastructure, delve into developments and establish a conducive environment for investors to recover their capital.
To him, urban renewal is important to enable a change from horizontal developments to vertical structures, adding that vertical buildings would help generate more green areas, affordable and massive housing.
He further lamented existing multiple taxation by the government, which he argued stifles growth and businesses in the sector. “Tax is too uncontrolled in the sector. Tax is charged on the house, products, land, movement into the home, and there are no provisions for infrastructure, so individuals handle their needs and are still required to pay on them,” Opara said.
The Chairman, Construction and Real Estate Group, Nigeria British Council of Commerce (NBCC), Mr Hakeem Ogunniran, said despite the challenges, there are pockets of opportunities available in the estate sector, which should be maximised.
He noted that the estate sector in 2024 will be a year of regulatory intensity, with focus on the need for compliance by operators. He added that funding would still be difficult to access for developers hence, the need to build flexibility and innovative funding systems.
Ogunniran said: “Technology will take the centre stage. There would also be significant government’s intervention. Developers will experience elevated prices due to the inflation and investors must constantly engage with due diligence and avoid suspicious purchase offers.”
Contributing, the Founder, B. Adedipe Associates Limited, Dr Biodun Adedipe, said that in the last 11 years, real estate contribution to Nigeria’s Gross Domestic Product has been on a decline, despite availability of opportunities in the industry. He advised businesses to deploy the best cost management strategy to grow income, as there is a limit to how much operation cost can be cut.
The Founder, Aircom Nigeria Limited, Yemi Idowu, said the government pays attention to revenue drive rather than regulation, which is not good for the sector’s development. Idowu urged the public sector to focus more on policy generation, which would in turn drive private sector investments.
On his part, the Group Chief Executive Officer, Landmark Africa Group, Mr Paul Onwuanibe, said the government should improve transparency in its systems, boost infrastructural provisions and strengthen the rule of law.
Onwuanibe charged the government to invest some of the tax revenue back into the property sector by supporting housing developers, who provide basic infrastructure that benefits and enhance infrastructure development in their locality.
