National President, Real Estate Developers Association of Nigeria (REDAN) Mr. Ugochukwu Chime has revealed that there are many houses in highbrow areas of the Federal Capital Territory (FCT) that have remained unoccupied due to break in the housing sector.
Chime, who disclosed this in an interview with Viewpoint Housing News in Abuja, noted that growth in the housing sector has been stunted due to lack of a clear cut policy.
According to him, “In the last four years, the housing industry has been relatively [down] as a result of the many challenges bedeviling the sector.
“We have a lot of abandoned duplexes in the city because lawmakers and ministers who occupy these houses could not continue with the payment because they are no longer in government so when they relocate to their various states, we find it difficult to resell or rent such houses.
“On a general note the housing sector has been having a lot of challenges ranging from lack of regulation, lack of a clear roadmap in terms of the role of stakeholders, lack of adequate access to land, high interest rate on loan and the poor purchasing power of the public who want to buy houses but lack the financial capacity.
“For instance, in the last four years nothing has changed in the housing industry because the cost of buying or renting a house in highbrow areas is very high and the ordinary people can’t afford it.
“Most politicians see Abuja as a transit city. So when they are no longer in government, it becomes difficult for them to maintain such houses so they relocate their families to their home states or even relocate them abroad.”
He said some estate valuers have even reduced the cost of their houses in highbrow areas so as to be able to get people to rent or buy them yet the houses have remained empty.
“Most houses built by developers in anticipation of the incoming lawmakers and ministers are yet to be occupied due to the general economic hardship in the country,” said the REDAN president.
He disclosed that the association has decided to do a review of its market strategy towards finding a lasting solution to the challenges of investing in the building sector without making returns.
The president, however, appealed to the federal government to create an enabling environment for investors through the provision of loans.
“There is the need for us as developers to go back to the drawing board to know whether we are making progress or not.
“This would help stakeholders to know their role so as to help government in building stronger regulations that would transform the housing sector.
“It is when regulations have been implemented according to the rules that we will begin to see changes,” he said.
The president, however, advised the federal government to involve the association and professional developers in all its policies, projects and programmes.
“The association will be able to advice government, as well as provide evidence if things are working well or not. We can also advice government on how to bridge the gap,” Chime said.
