Real estate industry lacks appropriate regulations – Expert

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In this interview with EDIDIONG IKPOTO, the Chief Executive Officer, Global Properties and Facilities International, Muhammed Balogun, speaks on some of the challenges bedeviling the real estate industry

It is cheating, fraud, corruption on the private sector side, it is not the economy. So, if you want to build a 20-bedroom apartment, you should ask yourself, who is going to take it? How much can they afford? What kind of building do I need to build? A lot of people do not think so. They just see land and go and build.

You know in Nigeria we say we have 20 million housing deficit, but do you know how many unoccupied properties are available in Nigeria? Have you correlated the two? Why are they unoccupied and we are still looking for houses? Because people are not building for needs, for requirement, they are just building because they just feel like building, and when they build, it takes a long time to get returns.

For the low income earner, there are different categories of housing. There is social housing. There is low income housing. There is nothing like affordable housing. It should be called affordable living.This is scientific. The major component of development is land. The second component is the construction materials. You find out that most times, development for low income, for price sensitive category of the market is developed far away.

Who are you building for? If I am going to build low cost housing, the first question I’ll ask is where do they live? Where do they work currently? In Mexico there’s a place where they built 600,000 houses and nobody is there, why? Because it was built away from where people are and they wanted to do affordable housing, built by government, nobody is living there because people are not there.

 

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True

Lol only Nig though

Avoid that industry for now. It’s not when someone is now kicking in that you will now remember appropriate regulations. Please it’s fine the way it is 🙄😆

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