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The effect of the Economy on Real Estate in Nigeria

The Federal Government has been asked to galvanise the economy with policies that will drive business growth.

A real estate consultant, Mr Omo Aisagbohi, said things were not moving for now because of the liquidity crunch.

Speaking at Trinity Mall customer reward show in Ikeja, Lagos, he said the real estate sector was the most affected by the current economic hardship. The dearth of liquidity in the system, he said, was discouraging patronage for personal mortgage ownership.

Aisagbonhi said: ‘’The real estate sec experiencing tough time because there is no liquidity. People are merely trying to survive and those who have money are careful about spending. Generally we are struggling to remain in business as things have gone worse. If not for banks that help us, maintaining our equipment have become more expensive.

“We expected that the first few months of the administration will make things better. But I don’t think our sector is growing in particular. One must first be well before thinking of owning a house. My fear is that government is discouraging hardworking Nigerians from owning their houses.”

He explained that challenges, such as multiple taxation, general import policies and difficulty in accessing Foreign Exchange (forex), among others, have prevented the sector from providing affordable housing to Nigerians.

He said the implication was that it encouraged smuggling of goods and services into the country while stimulating the economy of neighbouring countries.

The property expert noted, however, that those who make the harsh policies are not aware of the damages they are doing to the economy. He said they are enriching other countries as they smuggle those goods in.

While stressing the need for the government to rethink its policies in order to stimulate the economy, Aisagbonhi emphasised that the government should be less concerned with the provision of housing, but focus on creating the enabling environment for private sector operators to thrive.

Source: The Nation

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