Look into real estate sector for nation’s prosperity, REDAN tells FG | Prestige Real Estate News

Perturbed by the economic challenges confronting the country, Nigerian government has been urged to look into the direction of the real estate sector for the nation’s prosperity.

Converging on Ikeja for their general meeting in Lagos, practitioners under the auspices of the Real Estate Developers Association of Nigeria (REDAN), urged the government to leverage real estate development to stimulate economic activity and help in achieving prosperity of the economy.

They described real estate development as a catalyst for job creation across both direct and indirect sub-sectors of any economy.

They added that it would provide a wide range of employment opportunities in various areas such as construction, architecture, engineering, project management, real estate brokerage, property management, and maintenance.

For this to become visible, they said there was a need to address some of the challenges that have to do with access to funding and regulatory framework confronting the industry.

Some of the experts that spoke during the REDAN’s Annual General Meeting in Lagos at the weekend included the association President, Dr Aliyu Oroji Wamakko, Lecturer in the Department of Estate Surveying Management, University of Lagos, Prof. Gengar Nubi and Managing Director, Nigeria Mortgage Refinance Company (NMRC), Mr Kehinde Ogundimu.

Speaking on the theme ‘Envisioning the Nation’s Prosperity Through Real Estate Development’, Prof. Nubi pointed out that residential properties accounted for 48 per cent of global wealth, adding that mortgages constituted 72 per cent of the Gross Domestic Products in the United States of America and 86 per cent in the United Kingdom.

According to him, real estate constituted a larger percentage of Nigeria’s wealth, urging practitioners to come together and form strong collaboration to shape and determine the trajectory of the country.

Managing Director, Nigeria Mortgage Refinance Company (NMRC), Mr Kehinde Ogundimu, said that developer required a functional credit system, low-interest rates regime and efficient land administration, among other policies in order to achieve the full benefits of the nation’s prosperity through housing.

According to him, functional credit system and low-interest rates are key to the nation’s prosperity through housing, disclosing that NMRC as a company is working on NMGC to expand access to credit.

“With the articulation and implementation of optimal real estate development policies and a friendly and enabling business environment, the real estate development sector could catalyse the much-needed ‘infrastructure development tsunami’ and overall economic development in Nigeria,” he said.

To enable efficient land administration, added that NMRC is also working on Modern Mortgage Foreclosure Law (MMFL) for the purpose.

Calling the attention of the government to the real estate sector, he pointed out that real estate development is a major driver and contributor to economic activity in other sectors, such as manufacturing and retail, and typically contributes to the development of a skilled workforce.

According to him, a thriving housing and real estate market would boost the economy by providing the foundation for consumer spending, credit growth, and job creation.

He said, “Real estate development has the potential to generate significant revenue/wealth for key players in the economy: government, investors, developers, and property owners.

“Real estate development stimulates economic growth in various ways, such as increasing consumer spending, promoting entrepreneurship, and attracting new businesses to other adjacent sectors of the economy.

“It is also worth noting that the rise in property value and the construction of new properties stimulate a positive impact on the economy. An increase in real estate development translates to overall economic growth and activity.

“Real estate development activities help to promote homeownership and improve quality of living in any economy due to increased availability of mortgage loans by primary mortgage lenders,” he added.

Explaining further why the government needs to harness the sector’s potential for the nation’s prosperity, Ogundimu noted that real estate development contributes to economic prosperity through government tax revenue.

“The government collects taxes in the form of property taxes, sales taxes, property title transfer charges and income taxes on real estate transactions.

“As real estate values increase over time, he added that investors and developers make significant profits from buying, developing, and selling properties.

“In the same vein, property owners generate sustainable income from rent, which are typically reinvested in other real estate projects or other sectors of the economy to drive increased economic,” the NMRC chief executive said.

As an association, he tasked real estate developers with the need to properly regulate their members to regain and retain the confidence of the public.

REDAN President, Wamakko, highlighted the importance of housing to the socio-economic advancement of the nation.

• Nigerian Tribune