The chairman, Address Properties Limited, Chief Simeon Nnakwe, recently spoke about the challenges facing Real Estate business in the country. He said the Nigerian real estate industry, no doubt, witnessed significant growth but still faces numerous challenges.
Nnakwe who invests heavily in Real Estate pointed out that the cost of acquiring land and developing it are part of the major challenges. “Land acquisition can be quite expensive and the cost of developing it can even be higher” he said. “This has made it difficult for developers to provide affordable housing to Nigerians.”
According to him, funding is a major challenge. “Most real estate developers in Nigeria rely on bank loans to finance their projects” he said. “However, banks have become increasingly reluctant to lend to the sector due to the high risk associated with real estate investments. This has made it difficult for developers to secure the funding they need to complete their projects.
He further stated that poor infrastructure, such as lack of motorable roads, regular electricity supply, and water supply, are significant challenges. “Poor infrastructure makes it difficult for people to access affordable housing as well as makes difficult for developers to deliver projects on time and within budget” he said.
“Land use and title issues are also major challenges facing the Nigerian real estate industry. Many landowners do not have proper titles to their land, which makes it difficult for developers to acquire the land legally. This has led to a lot of land disputes and litigation, which can be time-consuming and expensive.
“The Nigerian real estate industry also faces a shortage of skilled labor. There is a limited number of trained professionals in the industry, such as architects, engineers, and surveyors. This has made it difficult for developers to find skilled labor to complete their projects, which has slowed down the sector’s growth.”
