A group known as Housing Development Advocacy Network (HDAN) has unveiled a 20-point reform agenda aimed at transforming Nigeria’s real estate sector, expecting that the agenda will achieve the transformation through greater transparency, stronger consumer protection, enhanced professionalism and increased domestic and foreign investment.
The group is also seeking the support of the National Assembly on the proposed reform, requesting its leadership to enact a National Real Estate Regulation Act that will establish a modern legal and institutional framework for regulating real estate development, brokerage, property marketing and consumer protection in Nigeria.
HDAN noted, in a statement at the weekend, that while the real estate sector has become one of Nigeria’s fastest-growing industries and a major contributor to employment and economic growth, the absence of a regulatory framework has encouraged land fraud, fake estate schemes, multiple sales of the same property, abandoned housing projects, consumer exploitation and declining investor confidence.
“The time has come for Nigeria to introduce a world-class regulatory system that protects homebuyers, promotes responsible investment and professionalises the real estate industry,” Festus Adebayo, Executive Director of HDAN, said.
Adebayo explained that the proposed reforms are not intended to over-regulate the sector or discourage private investment, but to create a transparent, predictable and accountable real estate market where genuine developers can thrive while fraudulent operators are identified, sanctioned and removed from the industry.
“Nigeria’s real estate sector has enormous potential to drive economic growth, create jobs and expand homeownership. However, this potential can only be fully realised through a comprehensive regulatory framework that protects consumers, promotes professionalism and restores investor confidence,” he said.
The 20-point reform agenda, according to him, are enactment of a National Real Estate Regulation Act, the establishment of an independent National Real Estate Regulatory Commission, mandatory registration of all housing projects before marketing, a national digital register of licensed developers and estate agents, escrow accounts for off-plan developments, and a developer-classification and performance rating system.
Others are a comprehensive digital land administration, stronger consumer protection mechanisms, a specialised Real Estate Consumer Protection Tribunal, stricter regulation of property marketing, anti-fraud and anti-money laundering measures, mandatory professional development, protection of buyers’ deposits, a National Housing Data System, state real estate regulatory authorities, fast-track approval systems, enhanced investor protection, and an annual State of Nigeria’s Real Estate Industry Report.
Adebayo disclosed that HDAN would soon commence consultations with members of the National Assembly, relevant ministries, state governments, professional bodies, private sector stakeholders and development partners to build broad national support for the proposed legislation.
“We are confident that the reforms would significantly reduce land fraud and property scams, restore public confidence, protect homebuyers, minimise abandoned housing projects, improve ttransparency, attract greater domestic and foreign investment, professionalise the industry and accelerate affordable housing delivery across Nigeria,” he assured.
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