The President, Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr. Johnbull Amayaevbo, has lamented that lengthy time and heavy costs are putting pressure on the ease of doing real estate business.
Amayaevbo, who spoke in an interview, said disruptions in the development activity from regulator involvement should be curtailed, and called on the government to focus on improving both human and technological resources to reduce the processes drastically.
He said: “Professionals continue to report delays in gaining building approvals, perfecting land documents and completing transactions due to long bureaucratic processes. Disruptions in development activity from regulator involvement should be curtailed. The government should focus on improving both human and technological resources to reduce these processes drastically.”
He disclosed that the performance of the real estate sector hinged on the performance of the overall economy and the ability of the government in strengthening the economy, especially its fiscal policies would significantly increase investor confidence further positioning Nigeria as an attractive market.
“This is critical to the management of the exchange rate. 2022 saw some foreign investor exit due to poor performance of the economy, providing an opportunity for local investors to increase and stabilising the economy would be pivotal for more local and foreign investments.
“The nation’s economic development should be taken into account. If Nigeria’s economy continues to expand and improve, demand for residential and commercial real estate could rise. This could lead to the construction of new developments and a rise in property values,” Amayaevbo disclosed.
He called for an increase in investment in power and manufacturing sectors, and urged the government to increase investment in Small Medium Enterprises (SMEs) with a view to creating an enabling environment for the private players in the manufacturing sector.
The NIESV president said the adoption of new technology and building techniques would have an effect on the real estate market.
“For instance, the use of prefabricated building materials and construction processes could make it easier and quicker to construct new projects, which could result in an increase in the availability of homes and other real estates.
“Technology has made it easier for real estate investors to get information about prospective investment possibilities due to increased transparency. This has boosted industry openness and made it simpler for investors to make educated selections. Technology has made it simpler for real estate professionals to connect with clients and other parties involved. This has streamlined and improved the process of buying and selling real estate,” Amayaevbo said.
He explained that power and manufacturing play a large influence in the real estate industry, as they are both significant economic growth and development drivers.
“Access to reliable electricity is essential for businesses to run successfully, and the availability of energy can be a significant factor in luring manufacturers to a given location’’, the NIESV said.