• Monday, July 15, 2024
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Govt determined to remove challenges impeding property investment growth—Sanwo-Olu


The Lagos State governor, Babajide Sanwo-Olu, says the state government is determined, more than ever before, to address the critical challenges that have impeded the growth of investment in the property business in the state.

Some of these challenges, according to the governor, are availability and security of land, the issue of land grabbers and the time it takes to process and issue necessary papers and permits such as certificate of occupancy, building permit, etc

The governor spoke at the on-going West Africa Property Investment (WAPI) Summit in Lagos where he was represented by Moruf, Akinderu-Fatai, the state Commissioner for Housing.

A major concern of the government, the governor told the gathering, was to create an enabling environment for investment to thrive in the real estate sector as a strategy to bridge the housing deficit and also fully harness the inherent potentials for job creation and wealth generation for the people.

Lagos has a very challenging housing situation. A Psion Housing Company Report estimates the housing demand-supply gap in the state at 3 million, requiring about 200,000 housing units to be built yearly for the next 10 years to bridge.

The report says too that about 80 percent of the state’s over 20 million residents are renters, meaning that the state’s housing sector offers huge investment opportunities waiting to be tapped.

Sanwo-Olu assured both existing and potential investors in the real estate sector of government’s commitment to address all their concerns with the deployment of cutting edge technology, especially in the land management and administration system.

“We are also committed to ensuring transparency and accountability in the whole system of processing security documents within the shortest time possible,” the governor assured further.

In spite of the challenges in Lagos as a ‘mega’ city, Sanwo-Olu still says  the real estate sector has continued to increased in importance in terms of returns on investment and contribution to the economy.

He highlighted noticeable increase in investors’ interest in real estate sector and this interest, according to him, is driven by increased urbanization which has led to significant rise in demand for properties for both residential and business purposes.

The governor cited another driver of this interest  which is prospect for the real sector investment, resulting from the projection indicating rapid population growth rate. It has been projected that, by 2050,Nigeria’s population would have increased by 100 percent.

“For Lagos State, about 12 million people will be added to the current population estimated at 22 million by 2050,” the governor said.

The implication of this expected growth is the need to develop strategic plan that will take care of the basic needs of the huge population, including shelter, food, health and education facilities.

“For us in Lagos, there is a peculiar challenge of land size. While Lagos accounts for over 20 percent  of the national population, it occupies only 0.4 percent the total national geographical area.

“This situation is even complicated by the fact that about 20 percent the land area is made of lagoon and oceans. With this statistics, Lagos will continue to be a major hub for real estate business,” Sanwo-Olu stated.