A real estate expert, Mr. Dipo Fakorede, has attributed the current lull in the sector to cash crunch and change of government at the federal level.
He said the incomes of estate firms and investors have been dwindling because of the unpalatable situation.
Fakorede, who spoke with our correspondent last week in his Lagos office, said: “Real sector of the economy has a lull because there is a financial crunch in the system.
“We have a new government with different policies and people are still waiting to see which direction the new government will take us.
“The new government says it want Treasury Single Account (TSA), which has forced banks not to lend. Banks are not lending to real estate developers or granting mortgage.”
The downturn, he said, has thrown up many properties across major cities of the nation at give-away prices.
The Head of Practice at Dipo Fakorede and Co advised investors with dormant resources to cash in on the situation to acquire most of these cheap properties.
According to him: “It is good for anybody now who is not taking money from anybody or financial institution to buy properties.
“This is the best time for investors who have their own money. There are thousands of properties out there for grab at give away prices.”
For owners, he advised them to hold on to their properties, especially when they are not under dire financial difficulties because the market will pick up again.
“My advice for sellers is to hold on to their properties if they are not pressed. What we are facing is a phase. The good times will soon come back.”
Fakorede predicted the market will bounce back latest by first quarter of 2016, calling for patients among owners and investors.
He explained: “I think by end of first quarter next year, there should be a bounce back. The ministers will be sworn in soonest; they would have to settle down, look at what is on ground and conceive a plan.
“Then, they present them to the Federal Executive Council (FEC) before getting approval and then execution. Then, we can start seeing results.”
The real estate expert also pointed out that banks will have no choice but to offer more housing mortgage facilities from next year.
This, he said, would be in response to the implementation of TSA and cancellation of COT, which will bring down their earnings and force them to fund the housing sector.
“There are coming back to meet us, I can tell you. They must survive and they will go back to mortgage. In developed countries, banks survive on mortgage.”
He called on the would-be Housing Minister to settle down quickly and conceive policies that will take the sector to the zenith.
Source: The Nation