Curbing building demolitions: Real estate expert’s insight

In recent years, Nigeria’s bustling urban centers, particularly Lagos, have witnessed a troubling surge in building demolitions, sparking unrest among investors and consumers alike. These demolitions, often executed by the Nigerian government, aim to penalize errant real estate developers for violations such as breaching city planning designs, failing to secure necessary national and regional permits, or neglecting structural integrity standards. Many of these buildings are erected in unsuitable locations, with flawed architectural plans that encroach on public spaces, posing significant risks to both surrounding communities and the general public. The fallout from these demolitions is severe, leading to substantial financial losses, property displacement, and reputational damage for real estate companies.

The escalating frequency of these demolitions has raised serious concerns among the public regarding the role of real estate companies and their apparent negligence. Why do these companies allow such breaches to occur? How can these issues be prevented in the future? These pressing questions demand answers from industry experts.

To address these concerns, we spoke with Oladipupo Clement, a seasoned real estate practitioner and business coach with over two decades of experience. Clement, who is also the CEO of Lifepage®, a leading real estate and business coaching firm in Nigeria, has built a reputation for upholding industry standards and ethical practices. His insights shed light on the multifaceted approaches needed to curb the ongoing wave of building demolitions and restore confidence in the real estate sector.

Understanding the Surge in Demolitions

According to Clement, the root causes of these demolitions are not far-fetched. “These demolitions stem from a series of critical lapses, ranging from poor adherence to legal policies to outright negligence by some real estate developers,” he explains. “Many developers are in a rush to complete structures, either to sell them off or lease them quickly. In Lagos, for instance, a significant number of buildings lack proper approvals from legitimate authorities. In some cases, permits are obtained from the wrong authorities, leading to inevitable government action. Additionally, some developers cut corners and avoid due process, using substandard materials that compromise the safety and integrity of the buildings.”

Inadequacies in Real Estate Practices

Clement identifies several inadequacies within the real estate sector that contribute to these issues. “Some real estate companies are more focused on achieving a quick return on investment (ROI) than on due diligence,” he notes. “Projects often progress without consulting the necessary authorities to secure the required permits. These companies may rely on bribing local officials, only to face difficulties when attempting to obtain legitimate permits later. Furthermore, there is a lack of transparency and accountability. Developers may alter designs or construction patterns without consulting buyers, leading to disputes and, ultimately, demolitions.”

Impact on the Real Estate Market and Consumers

The consequences of these demolitions are far-reaching, with devastating effects on both consumers and the real estate market. “The impact is immense,” Clement says. “Consumers, particularly those who have invested their life savings in properties, suffer significant losses. They may find themselves homeless or pushed into poverty. For the real estate market, trust is already a fragile commodity, and these demolitions only exacerbate the issue. The loss of consumer confidence leads to a downturn in property investments, stifling growth in the sector and hindering the development of urban areas.”

Preventive Measures and Solutions

To address these challenges, Clement advocates for a proactive approach. “The key is to do the right thing from the start,” he emphasizes. “First, there must be stricter enforcement of building regulations. Regulatory bodies should proactively monitor construction projects from the outset to ensure that developers have secured the necessary accreditations and are adhering to building codes and plans. This level of scrutiny would prevent demolitions by identifying issues early on.”

Clement also stresses the importance of project management within real estate companies. “Developers should be proactive in managing their projects, which includes clear communication with stakeholders, ensuring properties are properly insured, and maintaining professional standards in all regulatory and consumer interactions,” he advises. “Regular inspections should be conducted to verify that constructions align with approved plans, allowing discrepancies to be detected and corrected early.”

Protecting Consumers

Clement offers valuable advice for consumers to protect themselves from falling victim to these unfortunate situations. “Before investing or purchasing property, consumers should consult real estate specialists to educate themselves on market dynamics,” he recommends. “They should verify that all agreements are backed by credible documents and that developers have obtained the necessary approvals. Engaging external experts, such as surveyors and legal advisors, can help ensure that the property is legitimate and complies with state requirements. Consumers should also be wary of offers that seem too good to be true, as real estate is a significant investment, and cheap prices often come with hidden risks.”

A Call to Action for Developers and the Government

As a final note, Clement urges both real estate developers and the government to take responsibility for addressing these issues. “Developers must adhere to integrity and follow established regulations, no matter how challenging or costly it may seem,” he asserts. “Shortcuts only lead to long-term jeopardy for companies, clients, and the industry as a whole. For the government, a balanced approach is needed to clarify real estate laws and streamline the process for obtaining permits. Collaboration between the government and developers is essential to reducing the national housing deficit and preventing demolitions.”

As building demolition outbreaks continue to pose a significant threat to Nigeria’s real estate sector, the need for a collaborative effort between the government and industry players is more urgent than ever. By adhering to expert recommendations, such as those provided by Oladipupo Clement, and implementing stricter regulations, consumer vigilance, and responsive governance, the integrity of the real estate market can be preserved, ensuring a brighter future for urban development in Nigeria.