HDAN urges framework for regulating real estate developers, agents in Nigeria | Prestige Real Estate News
The Housing Development Advocacy Network (HDAN) has urged the Federal Government to establish a formal regulatory framework for real estate developers and agents in Nigeria.
The call was contained in a statement signed on Thursday by HDAN Executive Director, Festus Adebayo.
The group argued that weak oversight has created room for unethical practices, weakened investor confidence, and worsened Nigeria’s housing challenges.
What they are saying
HDAN said the absence of a comprehensive regulatory structure for developers, marketers, and property agents has enabled project abandonment, housing misrepresentation, and exploitation of buyers, particularly among diaspora investors.
“HDAN strongly advocates for the urgent regulation of Nigeria’s real estate sector to curb unethical practices, protect subscribers, and restore public confidence.”
“The Ministry should work with the National Assembly and relevant regulatory bodies to establish a comprehensive legal and institutional framework.”
“This framework will ensure accountability, transparency, and professionalism among developers and real estate practitioners.”
According to the group, stronger regulation would enforce delivery timelines, protect subscribers, reduce fraud, and professionalize the sector through clear standards and minimum entry requirements.
Backstory
Nigeria’s real estate market remains largely fragmented, with many developers and agents operating outside formal regulation, unlike trained estate surveyors under the Nigerian Institution of Estate Surveyors and Valuers (NIESV).
This regulatory gap has exposed homebuyers to frequent cases of delayed project delivery, arbitrary charges, and failed land allocations.
Diaspora Nigerians are particularly vulnerable due to their dependence on intermediaries and remote transactions.
In Lagos, despite tenancy laws capping agency and legal fees at 10% each, many renters continue to pay far above legal limits due to weak enforcement.
These longstanding issues have contributed to public distrust and slowed progress toward addressing Nigeria’s significant housing deficit.
More insights
Beyond regulation of agents and developers, HDAN’s broader housing reform agenda includes several measures aimed at improving affordability and efficiency across the sector.
The group called for the completion of ongoing Renewed Hope housing projects to avoid abandonment.
It advocated expanded public-private partnerships to accelerate affordable housing supply.
HDAN also pushed for land administration reforms, local building material promotion, urban renewal, and national housing skills development.
The organisation added that stronger coordination among housing institutions such as the Federal Housing Authority and Federal Mortgage Bank of Nigeria would improve project delivery nationwide.
What you should know
Concerns over weak regulation are reinforced by growing complaints from Nigerians who have suffered financial losses, delayed allocations, and shifting project terms in property transactions.
Diaspora investors have reported prolonged delays in land allocation despite completing payments and documentation.
Some off-take housing subscribers have faced extended delivery timelines and unexpected additional costs.
Cases involving unregistered developers and informal agents continue to dominate many segments of the market.
These experiences highlight the urgent need for stronger legal protections and institutional reforms to restore trust, improve transparency, and attract sustainable investment into Nigeria’s real estate sector.
– Nairametrics
