• Wednesday, November 29, 2023
businessday logo


Developers seek FG’s intervention as soaring inflation hurts housing sector

Developer narrows knowledge gap in estate agency, educates practitioners

Property developers say they want the federal government to intervene and halt the soaring inflation that is impacting negatively on the cost of construction and hurting the housing sector in Nigeria.

The developers under the aegis of Real Estate Developers Association of Nigeria (REDAN), Lagos Chapter, noted at the weekend that, besides inflation, the real estate sector is also challenged by the high-interest rate and volatile exchange rate of the naira against other currencies.

“The real estate sector is currently facing soaring inflation, creating a worrying trend and having a grave impact on the sector. The cost of real estate development has skyrocketed arising from the nation’s ailing economy,” Bamidele Onalala, chairman, READN Lagos Chapter, said.

Onalaja noted that “presently, all the factors that drive an increase in commodity prices in Nigeria, including galloping inflation, volatile foreign exchange rate and cost of transporting goods from one point to another, have all contributed to challenges confronting the real estate sector.”

He added that the Exchange rate in the country, which is dwindling and increasing daily, is a huge source of worry this is a civen that Nigeria is a country where over 70 percent of building materials are imported.

Read also: Naira falls to ₦774 on low dollar liquidity

He cited a recent survey on the prices of building materials which shows how bad the impact inflation has been on building materials, pointing out that prices of granite, sharp sand, aluminium roofing sheet, tiles, iron rods, and hardwood timber, among others, have increased considerably, leaving developers struggling and making the cost of real estate construction rise.

“Cost of hiring professionals for real estate development is equally on the rise. In every economy, the real estate sector plays a pivotal role in overall economic growth and development. This is why we, at REDAN, Lagos Chapter, are urging the government to find ways of lessening the impact of inflation on the citizens and operators of the real estate sector,” the chairman said.

Continuing, he said, “We find it very important to sensitize the general public and would-be buyers of real estate products on this unprecedented inflation affecting the real estate market and the economy in general as this may affect the cost of delivering housing projects, including off-plan sales.”

Onalaja craved the understanding of everyone and appealed to all government agencies responsible for regulating the economy to work extra hard for the benefit of the common man as shelter is one major factor that man cannot do without all over the world.