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Real Estate and Construction

Lagos announces mandatory registration for real estate practitioners, introduces rules and regulations

The move became necessary to capture and update a unified central database of real estate practitioners.

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Lagos announces mandatory registration for real estate practitioners, introduces rules and regulations

In a bid to sanitize the real estate sector, the Lagos state government has made it mandatory for practitioners like house agents, property developers and professionals in the sector to register with the state. This was announced via Lagos State’s Twitter handle, @followlasg.

Speaking during the launch of the website of the Lagos State Real Estate Transaction Department to Lagos State Real Estate Regulatory Authority (LASRERA), on Thursday at Alausa Ikeja, the Special Adviser to the Governor on Housing, Mrs. Toke Benson-Awoyinka said this became necessary in order to capture and update a unified central database of real estate practitioners and their activities.

In her statement, she said, “We are well aware of the trend of fraudulent practices of some Real Estate Agents and Property Developers, this is reflected in the complaints received by the Agency in recent times from residents who had fallen victims to fake Real Estate Practitioners and Property Developers while seeking for accommodation, purchase or sale of property, hence the need to have a comprehensive database that can be used to curb these fraudulent practices in the sector.”

READ MORE: Lekki regional road: Sanwo-Olu revokes land titles of Elegushi Royal family

Benson-Awoyinka said that it had become important to sanitize the sector, which has been bedeviled by lots of fraudulent practices, because of the state’s status as the commercial and economic nerve centre of Nigeria and Africa, with lots of investments opportunities.

She also said that the Governor had approved change of name of the government department, from Lagos State Real Estate Transaction Department to Lagos State Real Estate Regulatory Authority (LASRERA).

According to her, part of the mandate of the new office includes the preparation of rules and regulations for the practice of estate agency and other connected matters in the state, identification of persons eligible to be licensed as estate agents and renewal of annual licenses, sanction of unlicensed estate agency practitioners in the state, as well as the investigation of complaints and petitions against licensed estate agency practitioners, amongst others.

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The Special Adviser pointed out that the website www.lasrera.com houses a brief history of the agency’s initiatives, aims and objectives, commitment to the people, a complaint section and a registration portal which allows practitioners to upload documents, stressing that the Agency also has social media handles for effective management and communication amongst the stakeholders.

READ ALSO: COVID-19 to weaken Nigerian banks’ assets in 2020- Report

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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    Real Estate and Construction

    Bad loans to real estate up by 66.5% in 2020, as operators blame COVID-19

    Loans in the real estate sector rose by 12.87% to N56.03 billion at the end of 2020 from N49.65 billion in December 2019.

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    Nigeria’s real estate industry

    The total Non-Performing Loans (NPL) recorded by banks for the real estate and construction sectors increased by 66.57%, as the NPL rose to N226.62 billion in 2020 from N136.05 billion in the same period in 2019.

    This was disclosed by the National Bureau of Statistics (NBS) in its Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength report.

    READ: How to earn over 20% returns in real estate in Nigeria

    Highlights of Loans to the Real Estate Sector

    • Loans in the real estate sector rose by 12.87% to N56.03 billion at the end of 2020 from N49.65 billion in December 2019.
    • NPLs in the construction sector surged by 97.44% to N170.59 billion in December last year from N86.4 billion in 2019.
    • The construction sector contracted by -7.68% last year, compared to a growth of 1.81% in 2019 and 2.33% in 2018.
    • The real state sector shrank by -9.22% in 2020, compared to a contraction of -2.36% in 2019 and -4.74% in 2018.

    READ: Why property prices are expensive in Lagos

    What they are saying about Bad Loans in Real Estate

    Experts blamed the development on the challenges facing the real estate sector, especially with the COVID-19 pandemic, as they tasked the Federal Government to pay adequate attention to the sector.

    The Managing Director, Infinity Trust Mortgage Bank Plc, Dr Olabanjo Obaleye, explained that many companies affected by the pandemic had folded up, as housing subscribers were finding it difficult to service their mortgage payment.

    He said, “There are two companies that have just collapsed due to the inability of their owners to get foreign exchange for the importation of raw materials.

    “On the level of government support on COVID-19, there is nothing visible we have seen. We have read so many pronouncements on that from the government but we haven’t got any palliative in that respect. We have made proposals to government through our relevant authority but there is a need for certain funds to be set aside for this.”

    Hotflex

    READ: Why some real estate companies are at risk of bankruptcy

    A real estate practitioner and also the Vice President, Lagos Chamber of Commerce and Industry, (LCCI) Gbenga Ismail, said:

    “Now, people won’t be able to pay rents or buy houses as planned. We are not sure of where the monetary issues are going now and not sure if lending will continue in the real estate sector. We are yet to see some of these things going on.”

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    Real Estate

    FG to unveil dedicated portal for sale of houses to Nigerians

    The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

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    Nigeria needs N1.5 trillion within the next 3 years to fix roads - Fashola

    The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

    The platform is expected to help contributors to the National Housing Fund (NHF) access mortgage loans on a first-come, first-serve basis.

    This disclosure was made by the Minister of Works and Housing, Babatunde Raji Fashola while speaking at the ninth meeting of the National Council on Lands, Housing and Urban Development in Jos, Plateau State.

    Fashola, who was represented by the Minister of State for Works and Housing, Abubakar Aliyu, pointed out that the ministry is currently at the completion stages of the first phase of the national housing programme in 34 states of the federation, which provided land for it.

    READ: Thinking Of Getting A Mortgage In Nigeria? 10 Important Things You Must Know

    He said, “We urge the state governments to alert their residents to this opportunity for interested persons to apply.”

    Fashola commended the Federal Mortgage Bank of Nigeria (FMBN) for being at the forefront of the cooperative housing initiative at the federal level, adding that it has the advantage of allowing cooperative members to choose what they design and build to fit their budgets.

    They can leverage their members to get group discount for the purchase of building materials as well as the engagement of contractors.

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    Fashola disclosed that FMBN as the driver of the housing initiative has engaged 86 co-operatives in projects; approved N35, 784 billion cumulatively; disbursed N10.95 billion; and processed as at January, 57 co-operative housing development loans.

    Fashola emphasized that what the Federal Government can do directly in housing is limited compared to what states can do, just as state governments are also limited, compared to what the private sector and individuals can do.

    He said, “The majority of houses available for sale or rent belong to individuals and private companies compared to what states or Federal Government has available. Therefore, many of the tenants who owe rent, who face eviction or who seek to rent or buy property are dealing with private citizens or companies and less so with government agencies.’

    My recommendation for improving access and affordability to housing in the Covid-19 era is for private companies and individuals to give back some of what they control to citizens in the way the Federal Government has given back to citizens some of what it controls.’’

    He explained, “for example in cases where the rent of businesses or individuals are due for renewal, the private landlords can give back, by accepting monthly, quarterly or half-yearly rent instead of one year, two or three years rent in advance.”

    Bottom line

    Nigeria has been bedevilled by a housing crisis that has left Africa’s most populous nation ill-equipped to properly provide accommodation for its citizens and inhabitants.

    Jaiz bank

    Some of the housing problems in the country include unresolved rent tenure arrangements, high cost of building materials, access to infrastructure, deficiency of housing finance arrangements, stringent loan conditions from mortgage banks, time to process legal documents and inadequate government housing policies.

    Continue Reading

      





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