Nigerian government, developers and built environment professionals have been urged on the need to instill transparency in the real estate industry in order to unlock the sector’s full potential and contribute to national prosperity.
Managing Director, Kenna Partners, Professor Fabian Ajogwu, made this call during the Investiture of Prince Akintoye Adeoye as the fifth President of Real Estate Developers’ Association ( REDAN) in Lagos.
Ajokwu, who was the Guest speaker at the ceremony, said that embracing transparency by all stakeholders would foster trust and confidence in the real estate sector, attract investment and empowers all stakeholders to make informed decisions regarding real estate transactions.
In his paper delivered on: ‹Distributing National Prosperity and Wealth Creation Through a Transparent Real Estate”, Ajokwu pointed out that transparency is particularly important in real estate as it builds trust and confidence for buyers, sellers and investors.
Besides, he said it mitigates potential risks and guarantees satisfaction in transactions for all parties involved in real estate.
“It empowers all sides to make informed decisions by providing information that allows them to understand the market and compare prices.
“A transparent real estate sector is one where reliable market data and performance metrics are accessible to all stakeholders, laws and regulations are strictly enforced, and consistency and clarity are maintained,” he said.
Transparency in the real estate sector, he said would require the free flow of relevant information to all stakeholders and dismantling the opaqueness that shrouds land transactions.
To improve transparency in Nigeria’s real estate sector, the guest speaker said would include encouraging proptech adoption, strengthening legal framework, establishing dispute resolution mechanisms, and strengthening regulatory bodies, among others.
The professor of law called on the he government to improve transparency in the real estate sector by increasing its support for PropTech initiatives.
According to him, this could be achieved by granting some incentives such as funding for research and development to increase the creation of effective PropTech solutions, tax breaks for PropTech companies to incentivize innovation and growth, and promoting awareness of PropTech solutions among industry stakeholders.
“The government can also invest in infrastructure development that addresses challenges peculiar to Nigeria, such as unreliable electricity supply and limited internet access, which can create a more conducive environment for PropTech adoption in the country,” he said.
The guest speaker said that government could also review and strengthen the existing laws governing real estate transactions in Nigeria to promote transparency in the sector.
This, according to him, included addressing issues such as land ownership disputes and streamlining the property registration process.
The professor noted that land disputes in Nigeria were very common and quite tedious, urging the government to establish a dedicated real estate dispute resolution mechanism in order to resolve property-related conflicts faster and more efficiently.
Ajogwu said: ”Nigeria can strengthen its professional regulatory bodies, such as the Real Estate Developers’ Association of Nigeria (REDAN), the Nigerian Institute of Estate Surveyors and Valuers (NIESV), and the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON), to improve industry standards and public confidence.
“These bodies can establish and enforce strict standards for professionals in the real estate sector to follow, minimising the risk of fraud or malpractice. They can also standardise certain practices in the real estate sector, promoting uniformity and clarity for all stakeholders.”
He is of the opinion that a transparent real estate sector can be a powerful driver of national prosperity and wealth creation in the country.
He stated that investors would prefer real estate markets that are transparent, pointing out that when all stakeholders have free and easy access to relevant information, it will foster trust and confidence in the market.
“The Nigerian real estate market is not as transparent as it ought to be, which makes it difficult to assess the value of properties accurately. A crucial aspect of making informed decisions in the real estate market is having access to reliable data. When armed with reliable data and accurate information, investors can better determine the possible risks and opportunities related to real estate investments and development projects.
“This degree of understanding is crucial for minimising risk and maximising returns, which in turn contributes to the creation of wealth on an individual and societal level,” he said.
According to him, a transparent real estate sector has the potential to attract both domestic and foreign investors, leading to a significant increase in capital inflow.
This influx of capital, according to the guest speaker, not only enhanced access to finance for real estate development projects but also “fuels job creation and stimulates ancillary industries, thereby making a substantial contribution to the nation’s economy.”
He said: “Developers are also empowered with the right kind of data, enabling them to make informed decisions about the types of spaces to build and respond to consumer demands.
“Transparency in the real estate sector encourages homeownership, as individuals develop a sense of security and trust in the sector. This also enables sound long-term urban planning by the government.
“A transparent real estate sector facilitates the decision-making process of governments, public agencies, and the private sector regarding urban infrastructure.”
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