Real estate developers under the umbrella of Real Estate Developers Association of Nigeria (REDAN), Lagos Chapter, have appealed to the federal government for assistance, noting that the country’s rising inflation, is having severe impact on the sector.
The association which made the appeal I was a statement by Dr. Bamidele Onalaja, its chairman, and Dr. Ololade Abuta, its publicity secretary, at the weekend, said the sector is particularly impacted by the high-interest rate and volatile exchange rate of the naira against other currencies.
“The real estate sector is currently facing soaring inflation, creating a worrying trend and having a grave impact on the sector. The cost of real estate development has skyrocketed arising from the nation’s ailing economy,” the statement reads.
The association noted that “presently, all the factors that drive an increase in commodity prices in Nigeria, including galloping inflation, volatile foreign exchange rate and cost of transporting goods from one point to another, have all contributed to challenges confronting the real estate sector.”
It added that the Exchange rate in the country, which is dwindling and increasing daily, is a huge source of worry this is a civen that Nigeria is a country where over 70 percent of building materials are imported.
“Exchange rate in the country is not left behind as it is dwindling and increasing daily. This is a huge source of worry because this is a country where over 70 percent of building materials are imported,” the statement continued.
“A recent survey on the prices of building materials shows how badly the impact inflation has on building materials. The price of granite, sharp sand, aluminum roofing sheet, tiles, iron rods, hardwood timber, among others keeps skyrocketing leaving us to grapple and making the cost of real estate construction to skyrocket.
“Labour cost of hiring professionals for real estate development is equally on the rise. In every economy, the real estate sector plays a pivotal role in the overall economic growth and development. This is why we, the Real Estate Developers Association of Nigeria (REDAN),
“Lagos Chapter are urging the government to find ways of lessening the impact of inflation on the citizens and operators of the real estate sector.
“We find it very important to sensitize the general public and would be buyers of real estate products of this unprecedented inflation affecting the real estate market and the economy in general as this may affect the cost of delivering housing projects, including off plan sales.
“We ask for the understanding of everyone and we appeal to all the government agencies responsible for regulating the economy to work extra hard for the benefit of the common man as shelter is one major factor you cannot do without all over the world.”
