Managing Director at Fame Oyster & Co., Olufemi Oyedele, has blamed low construction activities in the real estate sector on numerous reforms and resetting in the economy particularly the removal of oil subsidy and high cost of food.
The industry’s expert noticed that construction activities refused to pick up as it used to be towards December in Nigeria.
Blaming the situation on economic hardship, he explained out that housing is always the first sector to experience impact of economic crisis and the last to experience the impact of economic boom.
” So if you want to assess whether the economy is thriving or not, visit the housing sector.
He expressed concern about the pace of completion of ongoing projects, describing it as “not encouraging” because of harsh economy.
“People are more concerned about food than to complete their building projects,” he said.
Commenting on incessant demolition of houses in Abuja and Lagos, he said such action was discouraging real estate investment in Nigeria.
He said:” To encourage investors at this particular period, demolition must stop and due process followed before demolition. To stop these demolitions, we must adopt rule of law and punish the senior civil servants that encourage illegal development by property developers.
It is a factor of corruption. If we can reduce the corruption level in this country and practice integrity, investors’ confidence in real estate sector will improve.”
According to him, the government could solve the challenges of homelessness in Lagos and Abuja if they really want to do so, saying it’s high time the authority embarks on slum upgrading rather than evacuation.
“The best way is slum upgrading and not slum evacuation. By demolishing slums and evacuation of slum dwellers, other slums will be created because water will find its level,” Oyedele said.
He said the implications of soaring cement prices would lead to reduction in housing starts, substandard sandcrete blocks, increase in prices of other building materials and delay in completion of houses under construction.
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