Insecurity worsening real estate crisis, says HDAN

A housing development advocacy group, Housing Development Advocacy Network (HDAN), has warned that if the Federal government does not tackle the spate of insecurity in the country, the real estate sector of economy may soon be grounded.

Executive Director of the group, Festus Adebayo, who made the disclosure, said the organisation is worried about insecurity and its adverse effect on real estate sector as the highest employer of labour and contributor to the Gross Domestic Product (GDP).

‘’We are strongly of the view that the Federal Government, elder statesmen, and state governments should unite to tackle security challenges facing Nigeria. We are urging that in the interest of real estate development and the economy as a whole issue should be addressed ,’’ he said.

HDAN noted that insecurity may increase the housing deficit in the country.

‘’We are of the view that with the perpetuation of the security challenges, the housing deficit of 22 million, may worsen as real estate investment may drop.”

According to the group, safety of dwelling places remain a key consideration when home seekers are making decisions on purchase or leasing of dwelling places.

“No home seeker will rent or purchase property in an area where the earlier-mentioned atrocities are rampant for fear of their homes being burgled or invaded and destroyed.

Adebayo said lack of safety meausres in certain areas, will put pressure on existing properties in areas perceived to be safe by people fleeing from unsafe areas. The result is that there will be an increase in the cost of purchasing or leasing properties in these “safe” areas.

“The downside is that the pressure may result in sporadic construction of unsafe and unhygienic structures, which may eventually collapse or lead to break-out of epidemics; an experience not befitting of ideal real estate development decisions,” he said.