The Chairman of the Real Estate Developers Association of Nigeria REDAN Lagos Chapter, Bamidele Onalaja, said the real estate sector is currently facing soaring inflation, creating a worrying trend and grave impact on the sector.
The chairman said this at a recently held press conference in Lagos State, where he called for the understanding of everyone.
He appealed to all the government agencies responsible for regulating the economy to work extra hard for the benefit of the common man, adding that shelter was one major factor that could not be done without all over the world.
According to him, the cost of real estate development had skyrocketed, following the symptoms of the nation’s ailing economy.
He said, “Presently, all the factors that drive an increase in commodity prices in Nigeria, 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.
“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 per cent of building materials are imported.”
Onalaja noted that a recent survey on the prices of building materials showed how inflation had badly affected building materials.
He added, “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 skyrocket.”
The Publicity Secretary of the Real Estate Developers Association of Nigeria, Ololade Abuta, explained that the labour cost of hiring professionals for real estate development was equally on the rise.
Ololade said, “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, 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.”