Mr. Olufemi Oyedele, an astute real estate practitioner, is the Managing Director, Fame Oyster & Co. In this interview with DAYO AYEYEMI, speaks on the challenge posed by the incursion of quacks to the real estate industry, the implications, and ways out of the ugly situation.
SOMEONE said that the Influx of unqualified practitioners has become a major challenge confronting the real estate industry. How factual is this?
Yes, the Influx of unqualified practitioners into the real estate industry is a major challenge confronting the industry because of the lost integrity, loss of money with over N3 trillion reported to have gone down the drain due to unpleasant, sharp and fraudulent practices of the unqualified practitioners. This is coupled with a below satisfactory performance of an industry laden with “quacks” and “rogue agents” and which provides the second most important basic need of man after food.
Though there’s no profession in Nigeria that does not have its share of quacks and rogues, it is more dangerous when you allow these criminals to operate in the real estate industry.
It has become a threat to the sector in that the incessant building collapses is as a result of the incursion of unqualified practitioners.
Moreso, foreign property investors are wary of Nigeria property market because of the huge presence of unqualified practitioners.
Thirdly, it was reported that over N3trillion has been lost to the unwholesome practices of the unqualified practitioners in the real estate industry.
How do we stop this ugly narrative and promote transparency in the sector?
To stop the incursion of unqualified practitioners in the real estate sector and promote transparency, we must be ready to enforce our laws and practice rule of law. There are so many rogues in the sector because we don’t enforce our laws. We must also ensure that all practitioners in the real estate sector are qualified. There should be differentiation of the certificates to be awarded to engineers and tradesmen for example, or asset valuers and estate agents. The roadside estate agents must be encouraged to go for training in the hands of institutions like Nigeria Institution of Estate Surveyors and Valuers (NIESV), and bricklayers trained by Nigeria Society of Engineers or Nigeria Institute of Building. There must be continuous public awareness about the danger in patronising quacks.
Also, there are huge housing projects abandonment in Nigeria. How did the nation get there?
We got there due to lack of enforcement of our planning laws, lack of organisation of our construction process and lack of rule of law.
One factor that has remained a constant decimal in all the countries where there is housing adequacy is the will of government to provide housing adequacy. All the governments of these countries see housing as a right and ensure that they provide adequate shelters for their people. That will is still missing in Nigeria. We are trying to achieve too many in housing within short period and with inadequate resources. Why will government start housing estates in another location without completing one if not due to politics? Housing is not an end but a means to an end.
There are also some abandoned buildings in Lagos by the Federal Government. What can we do with these buildings?
Government is not responding to our yearnings to convert these abandoned properties like 32 storey building NETCOM Building at 1 Marina, Lagos State and 25- storey building Independence House at Onikan because of the fact that housing crisis is not their priority.
The only way we can address this is to enumerate the abandoned government properties and convert them into residences for our people.
The solutions are to make laws against abandoned properties, set up housing’s regulators that will ensure that all prospective home owners get the backing of a mortgage or commercial bank before starting construction and make sure there is enforcement of our planning and national building codes.
We need to set standards for our construction. For example, a 3 bedroom bungalow must be completed within 3 months and if not, it becomes abandoned property. With these laws and monitoring and control, the problems will be solved.
Residents are facing unprecedented rental increase in Nigerian cities. Why the sudden surge in house rent?
In some parts of Lagos State, the landlords have increased the rent by almost 300 percent especially in new residential properties at Victoria Island, Surulere, Ikeja GRA and Ikoyi. This is due to two factors. One, the demand for houses is higher than the supply as Nigeria housing deficit is still close to 20 million units.
Secondly, the cost of new-build houses is exorbitant because of the high costs of building materials. The fact that there are rent defaulters means that the rents are not affordable rents. There are also a lot of completed vacant properties because there is no law in Nigeria to guide against abandoned properties. If there is heavy taxation against abandoned properties, market dynamics will reign.
Another urban problem affecting real estate development is the issue of land grabbing. How do you see this?
The issue of land grabbing in Lagos is a serious challenge to real estate development. Lagos State Government has tried to curb this by making an anti-land grabbing law and the Lagos State Special Task Force on Land Grabbing. The criminal law of Lagos State, in Section 281, included land as assets that can be stolen despite it is immobile, and Sections 52 and 53 of the same law prescribed jail term of two years for any person who forcibly enters or takes possession of land in a manner likely to cause breach of the peace against another. There are Anti-Land Grabbing Tribunal at Alausa, Lagos State, which is ready to help victims of land grabbing. Government of Lagos State is trying everything possible to make sure that Lagos State property investment climate is a friendly one.
Yes, these criminals are so desperate that they go to court to get false judgement and also use judgement of another land to grab people’s land, by threatening and intimidating their victims. Many Nigerians have lost their lives and investments to this menace which was very rampant in the past because land is gold in Lagos State with great opportunity, scarce land due to the small size of Lagos.
Any respite for the victims of the anti-development act?
The solution is for victims of land grabbing to contact estate surveyors and valuers and lawyers whenever they are approached by land grabbers. Even where they are illegal squatters, they have the right to be given notice to quit. And where the original owners of the land have slept on their rights, the squatters have the land according to the law of Lagos State. So, victims should always contacts their estate surveyors and valuers for advice.
Land grabbing is so rampant in urban society, especially Lagos State, because of the premium in urban land and lack of proper statutory governance. Government is so docile that 80 per cent of houses don’t have approved building plans. This means that there is no rule of law and that people are building with impunity. Government of Lagos supposed to have a wholesale master plan earmarking different uses and future development. Corruption is also a bane of incessant land grabbing in Lagos. By now, all expanse of land in Lagos State without Certificate of Occupancy should dwell in Lagos State. Lagos State government doesn’t have enough site and services schemes to cope with the demand of the residents of Lagos State for land. We should always remember that land is a basic need of man as it is a means of wealth creation, necessary for food production and shelter development. Government should do a proper layout of Lagos State and be the only authority selling untitled land in Lagos State through allocation. The fact remains that, land grabbers don’t go to government estates and layout to grab land as they do to non-government lands.
Any danger in the activity of land grabbbers?
The dangers of land grabbing to government, community and real estate development is that it is inimical to real estate investment. People are averse to real estate investment because they do not want to be victims of land grabbing. Since one of the functions of governments is security of lives and properties, it shows there is no government in any area where land grabbers are having a field day. Government can organise land transaction better than the use of force to grab land maiming and killing people.
There should be sensitisation of people not to buy land from indigenes but from government. Government us trying but we can do more to ease land transactions and have seamless process in Lagos State. Nobody should be able to build on a land in Lagos without title. A lot of resources like money, time, lives of residents and building materials are being wasted due to land grabbing.
Any advice for property owners?
Property owners should always contact an estate surveyor and valuer who will advise them on how to procure legitimate land that is free from land grabbing. Lagos State government should stop people from selling Lagos land. Any land without title in Lagos should not be approved for building. The process of building construction in Lagos is faulty. We can do better.
Source: https://tribuneonlineng.com