Members of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) have advocated review of the relevant ethical standard to reflect the current technological changes and public institutions’ requirements for doing business.

They also called for the adoption of risk identification, analysis, avoidance, reduction and management in feasibility and viability appraisal of real estate development.

The estate surveyors and valuers, who met at a Mandatory Continuing Professional Development (MCPD) organised by the Abuja branch, urged adequate land titling up to Certificate of Occupancy of the land for real estate development.

They also sought increased advocacy to the government and general public on the need to involve members throughout the real estate development value chain and the strengthening of the mortgage foreclosure law.

Earlier, experts listed financial constraints for real estate development to include the discrepancy between the official reported lending rate of about 18 per cent and the actual lending rate of over 30 per cent, which make it difficult for the developers, the funding requirements for real estate development is long-term fund with low interest rate.

They stressed the need to harness the long-term funding sources at single interest rate, stressing that the real estate development has high supply stock, which is stimulated by the high interest rate effect and availability of the funding for the prospective buyers leading to significant stock of unsold properties in the market.

Chairman of the Abuja branch, Adebanjo Adeleke, said that the major challenges of real estate financing in Nigeria include the low capacity of mortgage and commercial banks, high interest rates on mortgage loans, difficulties in approving and obtaining mortgage loans, unsecuritilisation of the capital market and difficulties in obtaining property titles.

He noted that these challenges could hinder the growth and development of the real estate sector, adding that there is the need to explore effective business strategies to overcome these obstacles and find innovative solutions.

He urged the participants to take advantage of the programme to enhance their knowledge and improve the practice of estate surveying and valuation and property development in particular to overcome the inherent challenges of paucity of funds and difficulties in land titling.

Speaking on the theme, ‘Business Strategies in Curbing Financial Constraints in Real Estate Development”, the Registrar, Council of Registered Builders of Nigeria, Adetunji Adeniran, said with the benchmark interest rate of 18.75 per cent, any fund drawn at such rates, do not provide resources that could be applied for the real estate development.

Adeniran observed that apart from the challenge of high interest rate, there is also that of tenure of loans and facilities as available funds are mostly short-term in nature, stressing that real estate development requires long-term funds at low interest rate.

Other constraints, he said include high production costs and poor understanding of the market, as well as highlighted business strategies to enhance real estate development.

The strategies includes adequate knowledge of the accounting/finance rudiments, understanding of the entry, exit and returns concepts, assets classification and monitoring to identify the underperforming assets and making adequate early decision to exit and dispose of the assets in the volatile market.

The Chairman, National MCPD Committee, Dr. Emmanuel Mark, observed that estate surveyors and valuers can survive the economic downturn and become more resilient by buying into the business strategies for real estate development.

NIESV President, Johnbull Amayaevbo, encouraged the participants to take advantage of the knowledge shared to enhance the practice and property development in the country.