An international real estate expert, Mr. Bill Endsley has revealed that investors would not commit huge capital to the housing industry due to risks involved in investment and lack of transparency in transactions.
To boost investment in the country, he suggested that the federal government should put in place risk mitigating measures for institutional foreign investors in the housing market.
Endsley who made the revelation at a two-day training organized by the International Real Estate Federation (FIABCI) Nigeria chapter, warned that with Nigeria formerly occupying 104th position in global competitive ranking among countries to 115th position in the ease of Doing Business Report for 2018, the situation might remain the same for a long time.
Mr. Endsley said the government, the people and civil societies must understand that the task can’t be done alone by either of the parties rather the three players have to come together and proffer right solutions to issues militating against the survival of the built sector.
“We are talking about foreign direct investment in the property market and how Nigeria can increase its inflow because the nation has great potential and a lot of institutional investors around the world are looking into the industry. Right now, Nigeria maybe opaque or not so clean in the windows of property sector.
A lot of transparency is required for investors to show interest and retail, individual and institutional investors are interested in high return on their investment. Nigeria has to strengthen its property rights, access to credit/ security of tenure, form of ownership, legal framework and enact regulations not just to protect companies but to spur innovations in the industry”, he said.
Speaking on the high interest rate, he declared that developers and investors can’t price the risk because it is dangerous and won’t bring in high return in investment.
He emphasized that Nigeria must get it right in the area of finance, insurance and real estate for capital to flow into the country. He advised that a Public Private Partnership model, should be adopted in the industry especially, in an emerging economy like Nigeria, for inclusive participation of citizens and not to impose decision on property issues.
He told participants to develop themselves and properly understand the world in which they operate, gain the needed skills and knowledge in technological trends and business of real estate that could be used to convince investors to come into Africa.
President, FIABCI-Nigeria, Mr. Adeniji Adele stated that one of the goals of the chapter was to develop the expertise of professionals in the built industry using education as a tool. The Guardian