Even before coronavirus struck, property owners and many of the businesses that leased their space were under strain due to high vacancy rate and rents default.
Their woes seem to multiply now as jobs and the economic effects of the pandemic have hit incomes of thousands of people. Experts predict that property owners could face cash crunches as renters default and many renters will move in with family and friends or relocate to less expensive locations.
Nwafor Franklin, the founder Frank Realtor Limited, a real state agency based in Abuja Nigeria, has appeal to the government to support the real estate business owners especially in this period of economic downturn.
According to him, the major issue that continues to affect housing in Nigeria include constraints related to the high cost of securing and registering secure land title, inadequate access to finance, slow administrative procedures and of course the high cost of land.
Given these challenges, Franklin said, a sustainable action plan is required to reduce the housing gap in the country, noting that some efforts have been made, but there is a need to bring it all together.
“The harsh economic situation in Nigeria is affecting the real estate business. The reality could also be seen from the number of property listed for sales without positive outcomes. As a result, trillions of naira, which could have been used to boost the economy are stuck in the sector which has been considered one of the good things that happened in Nigeria before the recession,” Franklin said.
According to Franklin, “accessing some of the documents for procuring lands are becoming a burden. Government operatives in charge are not doing enough to ease this pressure which has harmed real estate business. Complaints have been registered but more efforts are needed to get the government attention to help resolve this issue.”
He added that in line with the government order to stay at home to limit the spread of COVID-19, his company have built an online platform where investors can easily explore and take part in some of the company’s business offers.
With a housing deficit estimated at 20 million units valued at N59 trillion, Nigeria has a huge housing challenge. This is why housing sector stakeholders say the recent pronouncement by the Central Bank of Nigeria’s (CBN) that it would be making funding intervention in affordable housing is a welcome development.
