NBCC Inaugurates Its Construction Industry & Real Estate Sector Group

The Nigerian-British Chamber of Commerce yesterday hosted an advocacy round-table on real estate sector as part of its contribution to boosting growth in the country. This provided stakeholders with a platform to discuss the challenges, policies and opportunities in the Nigerian real estate sector and also add value to businesses through networking.

In order to institutionalise the conversation so it continues, it also inaugurated the construction industry and real estate sector group of the Nigerian British Chamber of Commerce. Managing Director of UACN Property Development Company, Mr. Hakeem Ogunniran was appointed the first chairman of the NBCC real estate group, while Managing Director/CEO of Realty point Limited was appointed the first Vice Chairman.

Minster of Power, Works and Housing who was represented by his special adviser on housing, Mr. Biodun Oki set the ball rolling with a vibrant speech which touched various untapped problems in the real estate sector. His speech asked series of questions which threw the round table attendees in deeps thoughts. Among such questions are:

Can government truly provide homes for everybody?

Who can legitimately afford to own a home?

Should the government provide homes for those who do not have jobs? Or should government provide a robust economy that provides jobs and leave people to seek their mortgages?

How will people pay for houses when they are built? Will payment be by mortgage loan or cash and carry?

Are we ready to pay a service charge to maintain these houses regularly?

Are we ready to open up access to uninhabited houses so that those who cannot own can pay rent? Are they ready to accept monthly payments in arrears from employees who receive income in arrears?

Or do we prefer that they pay rent for 2years in advance when they have not receive salaries for 2years in advance?

Do we worry about the impact of transparency when 2years rent is paid by somebody whose known means of income is a monthly salary in arrears? And yet we accept the two years rent in advance without a thought.

What is the impact of lack of rental credit on our economy?

Are our Architects conscious of cost of energy and electricity?

How do we value houses for sale and for rent? And how fair is the practice of asking the tenant or buyer to pay 10% legal fees and 10% agency fees when the estate agent and legal practitioners acted for the landlords and did not represent the tenants or the buyers?

What are the Estate Surveyors and Valuers doing about this?

Mr. Hakeem Ogunniran, who spoke from the perspective of a developer, made presentation on the Agenda for reformation. In summary he stated that the approval and permitting process needs to be streamlined, Build technical skills, the need to shift from harmful competitions to winning collaboration, funding and provide legal framework that guarantees title of land.