Stakeholders advocate reduction in housing deficit, better mortgage system

Edo State Governor, Godwin Obaseki and other critical stakeholders in the real estate sector have advocated a reduction in housing deficit and better mortgage systems for middle-income earners in the country.

They argued that the problem bedeviling the industry is providing affordable housing and mortgages for would-be homeowners.

Giving instances in his state, Obaseki, who said the citizens are lucky to have the whole component required for affordable housing system, however, blamed the real challenges on financing and high-interest rates.

Obaseki spoke during the investiture of Frank Okosun as the new Senior Partner/Chief Executive Officer (CEO) of Knight Frank, Nigeria and send forth of the outgoing CEO, Chief Albert Orizu, in Lagos.

According to Obaseki, the main challenges are not in building but on financing, particularly, the long-term financing required for all states to venture into property developments.
 
“How do we reduce the interest rate to the level where it is a single digit so that people can afford it. For us to achieve that, low-interest rates must be made available. That is beyond the control of the state but the financial sector,” he said.

The incoming chief executive, Knight Frank, Frank Okosun, pledged to reduce the housing deficit by increasing more developments in all areas of the state, putting more properties in the market, and ensuring that there are mortgages for young startups.

Okosun, also pledged to continue to increase the level of professionalism in the organisation, and train more young people to become good surveyors for the industry.

He said the challenges in the housing sector could only be only be achieved if the government will provide the enabling environment, level playing ground, so that the people can invest in real estate.

According to him, the government has huge role to play to create affordable housing for everyone. 

In his remarks, the outgoing chief executive, Knight Frank, Orizu, called on the government to participate more in the low and middle-income housing.