Old Federal Secretariat Complex, Ikoyi.
Some of the challenges of real estate business in Lagos and Nigeria at large were brought to the fore at a forum by stakeholders recently, with the assurance of the authority to remove these inhibiting factors for the benefits of all. Dayo Ayeyemi reports.
Real estate is one of the most critical sectors to any economy; In Nigeria, it is one of the top industries targeted to revamp the economy due to its huge potentials to enhance economic activities and create jobs.
For this reason, all tiers of government are increasingly beaming searchlights on the opportunities of the sector to attract investors and increase their Internally Generated Revenue (IGR).
However, one of the major obstacles in the sector is the absence of regulation, which is badly affecting the image of the industry, thereby limiting its potentials.
But this narrative is about to change as the Lagos State Government through the Lagos State Real Estate Registration Authority (LASRERA), has gathered all stakeholders to its first “Real Estate Market Place’ to deal with issues inhibiting the growth of the sector, while uncovering its opportunities.
There is no doubt that Lagos has been the destination of real estate investments for over one decade now, going by the plethora of modern retail malls, residential apartments, office and commercial complexes, but experiences shared by investors and developers on the ease of doing business in the state have not been encouraging.
Some of these issues raised as inhibiting factors by the practitioners and developers at the forum included legal and bureaucratic challenges, unstable government’s policies, absence of data, high cost of funds, underdeveloped mortgage sector, fraudulent activities of unscrupulous elements parading as estate agents, land grabbing activities, delay in getting planning permit and high cost of building materials, among others.
Themed:“Unearthing Real Opportunities in Real Estate: – Making Lagos a 21st Century Economy,” the forum provided avenue for practitioners, potential clients, estate developers, home builders, investors, estate agents, accommodation seekers, finance providers, investment bankers, insurance operators, policies makers, government officials and politicians to interact, share experiences and provide useful suggestions to move real estate businesses forward in the state.
This is coming at a time the Lagos State House of Assembly is considering the passage of the Lagos State Real Estate Regulatory Authority Bill, 2020.
Doing business
Demonstrating commitment to attend to peoples’ complaints and resolve some of the issues raised in order to promote ease of doing real estate business in the state, Governor Babajide Sanwo-Olu, informed the audience his plans to digitalise the state’s land titling and registration processes.
According to him, beginning from first quarter of 2021, all land related transactions in the state would be undertaken online.
The plan, the governor said, was to further accelerate the process of getting approvals on land matters and create an enduring business-driven property development market in the state.
He disclosed that the state’s Land Bureau had built the required capacity for smooth transition to the online platform, stressing that the plan was already in its final stage.
When the web-based platform is finally launched, there will be no need for applicants seeking Certificates of Occupancy (C of O), survey and building plan approvals to physically submit paper documents for authorisation. All documentation and payments will be done by applicants from the comfort of their homes.
Sanwo-Olu assured that the new development would bring about quick turnaround time in land transactions and boost private investors’ confidence in provision of home ownership model that will address housing deficit in the state.
He said his government had improved the state’s GIS solution to accelerating land matters.
He said “From the first quarter of next year, we will be launching an online platform on which all land transactions will be done. When the project starts next year, there will be one-stop-shop for all transactions relating to land, including governor’s approval on C of O, and building approval by Ministry of Physical Planning and Urban Development.
“We cannot afford to disappoint private investors and applicants seeking real time approval. We are raising our capacity, so that we can respond to the requests and discharge them.”
He warned land and building approval agencies in the state to live above board, cautioning that officers engaging in sharp practices in giving approvals would no longer find his administration a safe haven.
The governor said the Ministry of Physical Planning and agencies under it such as the Lagos State Physical Planning Permit Agency and LASBCA would need to scale up and do a better job about physical planning approvals.
He noted that the agencies should be alive to their responsibility, especially as the real estate sector has the capacity to redefine the Gross Domestic Product (GDP) of the country, including Lagos.
Talking to investors and developers, he said “I need to charge the real estate investors that everybody needs not build in Sangotedo or Ibeju Lekki. Let us go to the mainland and start regeneration of the assets in that part of Lagos. This way, we would be redistributing wealth and creating opportunities for our citizens,” the governor said.
Some of the key speakers at the panel sessions included Chief Executive Officer (CEO), Chapel Hill Denham, Bolaji Balogun; Assistant Vice President Retail Mortgage Underwritin, Mr Kunle Faleti; Femi Ademola of Cordros Capital; Babatunde Ajayo of United Capital Plc; Kayode Falasinu of AVA Capital; Sammy Chidoka of Kairos Capital; Tokubo Ajayi of United Capital Trustee; Mrs Funmi Ekundayo of STL Trustees; and Adekunle Awojobi of FBN Quest Trustees.
Others are housing expert from Morrocco, Ms Tagma Mounla; CEO, Oct5 Limited, Jide Odusola; CEO Odo Ogun Castles Estate Limited, Buddy King; PWAN Group, Dr. Augustine Onwumere; CEOs of RTD Thompsons Limited, Otunba Tom Daramola; Gracia Group, Ms Lolade Abuta and Seagle Properties Limited, Yemi Lawal respectively.
Justifying the essence of the forum, special adviser to governor Babajide Sanwo-Olu, on Housing, Mrs Toke Benson-Awoyinka, said the regulatory agency, since inception, had set processes in motion to change the negative image of the property development business and check malpractices which the sector had faced in the last decades.
Besides, she said it has provided opportunity for stakeholders in the property business in contact with relevant government agencies to address bottlenecks slowing down property transactions.
She explained that LASRERA was created with a mandate to bridge the gap of credibility in the property business, pointing out that the government responded to the yearnings of industry players having realised there were genuine real estate practitioners and property developers, as well as genuine home and property seekers, who were desirous of transparency in real estate transactions in Lagos.
“We are making a renewed appeal to investors in the sector to team up with the state government to create a homeownership model that will help address the deficits observed in the housing market in the state, through Public Private Partnership (PPP) initiative, to provide mass housing for our people”, she said
Commissioner, Ministry of Energy and Minerals resources, Mr Olalere Odusote, told them that access to secure, affordable and sustainable energy could reduce the carbon footprint of energy demand in buildings.
He disclosed that the state is actively promoting the penetration of clean energy and energy efficient technologies across the state to supporting the private sector.
Agencies’ efforts
Commissioner for Physical Planning and Urban Development in Lagos, Dr Idris Salako, said he ministry has put measures in place to ensure speedy granting of planning permit to developers.
He called on property owners and developers interested in obtaining planning permit to always perfect their applications to avoid delays as the process is clear and seamless.
Except for those that would like to cut corners and make mischief, he said the requirements for planning permit were not cumbersome but necessary to regulate the built environment and give room to seamless development of the state.
According to Salako “Some reforms and service level agreement of 28 days had been implemented by government to simplify the planning permit process.
As part of the reforms, he hinted that the ministry has increased the number of supervisory directors and district officers and devolve planning permit approvals down to the level of district officers
Permanent Secretary, Lagos’ Land Bureau, Mr Bode Agoro, told the audience some of the steps being taken by the office to transform processing and procedures for land titling system in the state.
To safeguard real estate investment in the state, Attorney General/Commissioner for Justice in Lagos State, Mr Moyosore Onigbanjo, said the state’s task force on Land Grabbers Activities t has received more than 4,300 petitions in four years.
Out of these, he stated that over 2,000 petitions have been attended to, while others are pending.
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