Documentation and lack of access to finance as been adduced as major challenges to real estate investment in Nigerian
According to the Managing Director/Chief Executive Officer of Novarick Homes and Properties Limited, Noah Ibrahim, getting the documents of properties could be one hell of a challenge in Nigeria.
To address these challenges, Ibrahim suggested some solutions ranging from the implementation of proper policies in term of land ownership,Public –Private Partnership partnership, improvement on the country’s economic landscape and improved security.
He also suggested access to foreign exchange and building materials.
“These will open up for more investments to come in. Once you don’t have a good economy, you’ll have a high level of inflation. Government should tackle the economic issues we have and improve the value of the naira.
“Most of these building materials are being imported because we only produce a few here and that makes the cost of materials so high.
“It affects the developers who are buying, which in turn has an effect on the cost of the property,” he said
The Novarick Homes boss stated that mortgages would always be a challenge in the country due high inflation and interest rates.
“There is high inflation and interest rates in the country. Funds from the Central Bank of Nigeria (CBN) are coming at nine per cent and the banks have to manage the money. Once they added their rates you are already getting double the amount and there is nothing you can do. If you get foreign directives in dollars, you’ll have to pay back in dollars which doesn’t pay well because of the constant demands,” he said.
He said the high level of inflation is currently affecting mortgages.
Source : Nigerian Tribune