An expert in the real estate, Mr. Chibundu Marcellus has said that the movement of the economy can make positive impart in the built environment if government can straight out the laws regulating the industry.
Marcellus who is an investor in one of the biggest real estate firm in India said that by 2020 investable real estate will have grown by 55 per cent compared to what it was ack 2012. He said that a lot of things will have to act together to bring about that. He said that the industry, no doubt faces a number of fundamental shifts that will shape its future despite the fact that confidence is gradually creeping into the sector.
According to him, global megatrends will change the real estate landscape considerably over the next six years and beyond. “While many of the trends are already evident, there is a natural tendency to underestimate how much the real estate world will have changed by 2020. The changing landscape will have major implications for real estate investment and development. It will increase the size of the asset pool, yet change the nature of investment opportunities. Real estate organizations will need to adapt early to survive and prosper,”he stated.
He noted that Real Estate in 2020 will capture important trends in the industry and the impact they will have for real estate managers and the investment community. “Key areas include the urbanization that’s taking place as people cluster around the great cities of the world, the new real estate subsectors that are emerging to satisfy the needs caused by shifting demographics, and also the technological implications that need to be considered as companies think and go globally. Every investor and asset manager can benefit from the profound implications shared herein, “he emphasized.
Specifically, experts, who looked into the performance of the sector, however, noted that the indices that will drive the market remained government actions or inactions. The implementation of the budget and the amount of money in circulation as well as the perceived government willingness to focus on economic growth. “A lot of investors will be guided by their perception of the dedication of the government towards its own policies and not just lip service,” Chudi Ubosi, President, African region of International Real Estate Federation, (FIABCI ) said.
According to him, stakeholders could continue to look out for government policies that encourage private enterprise. “The world is moving towards economies where the private sectors take the lead in driving the economy whilst the governments focus on providing the enabling environment for economic growth. Until these are visible in Nigeria we may not be forward bound”, he noted.
Ubosi, a renowned estate surveyor and valuer was also optimistic that the real estate sector will enjoy slow recovery this year. He hinged his optimism on the few policies enunciated by the Federal government in its budget. Ubosi however, noted that this could be short lived based on the perception of players in the economy and their confidence level as well as the political risks involved.
Collaborating his views, the Chairman, Faculty of Housing, Nigerian Institution of Estate Surveyors and Valuers (NIESV), Chief Chika Okafor noted that the sector will be highly dependent on government’s policy, but expressed doubt that the budget for housing would be able to have any significant impact on the built environment.
He said for a robust 2018, government must wake up and play its role, especially in the provision and accessibility to lands and services, infrastructure such as roads, water amongst others as well as allow the private sector to thrive through an enabling environment. With the current provision for housing in the 2018 budget, housing demand of Nigerians can never be achieved. Government should encourage the real estate developers by reducing charges so that they could develop houses for the masses. The sector can bounce back to its glorious days, if there is genuine willingness and commitment from the government, above all, the government has the key, our economy is government oriented. Genuine policies that would facilitate the provision and development of affordable houses must be made,”he noted.