Developer seeks price control in real estate, single-digit loans

With housing in short supply, a real estate company, Messrs Sterling Homes Limited has advocated price control in the real estate sector.

The company also made case for the reviving of Estate Development Loan (EDL) at single- interest rate to enable private developers reduce housing deficit and ensure cheaper homes.

The Federal Mortgage Bank of Nigeria (FMBN) had suspended the construction facility, which was a window to increase housing stock of mortgage-ready houses in 2012 due to abuse and loopholes associated with it.

The company’s Managing Director, Dr. Kunle Adeyemi, who made the recommendations at the launch of its new identity, said the government’s inconsistency in policies and lack of regulation on pricing in the built environment have impacted negatively on the affordability of houses.

Adeyemi, who doubles as the General Secretary, Real Estate Developers Association (REDAN), South west zone, also urged state governments to provide enabling environment for property developers and improve on the turnaround time for perfecting title documents.

If the projections of the estate construction company come to pass, the firm will in two years deliver over 800 housing units in each geopolitical zone of the country.

He announced plans to shift focus from building homes in developing areas to developed locations, and prime areas. “We will ensure people’s dream of owning homes become a reality. We’re an advocate of good environment,” he said.

According to Adeyemi, the company’s strategy is to promote affordability, which had been reduced due to weak economy and effect of COVID-19 pandemic as well as partner governments in a public-private initiative to increase housing stock. “That’s why we are extending tentacles to the geopolitical zone of the country.”

According to him, over 87 per cent household population in Nigeria still live in rented apartments, which prompted the company to introduce a new model for housing. “We’re passionate of creating a gated community. In Lagos, we’re targeting prime areas and developed areas such as Government Reserved Area (GRA) in Ikeja, Surulere, Yaba and others.

“We will ensure structured and affordable payment plans at zero interest in a bid to deliver homes and tackle housing deficit,” he said.

The company he said, plans to commence property development with 150 housing units in Surulere and Ogudu, Lagos as well as another 150 units in the South-South region, especially in Port Harcourt that will be completed before end of the year. “Next year, the firm plans to build 500 units,” he said.

Adeyemi restated the firm’s commitment in ensuring Nigerians in diaspora own homes. “Our product appeals to Nigerians in diaspora like those living in the United Kingdom, United States and Canada, ” he said. He said REDAN supports the participation of federal and state governments in housing development and delivery.