The unprecedented challenges currently faced in real estate have been attributed to the high cost of building approvals, inflation, and reduction in available land, property developers have said.
Building approval is essentially regulatory permits given by the government through its relevant agencies that enable the commencement and completion of a construction, renovation, or remodelling project on a piece of landed property.
According to them, incurring costs during the process of obtaining necessary permits through government agencies has disrupted development in certain areas, leading to a reduction in available land.
This is amid the recent clampdown by local authorities on illegal developers in the Federal Capital Territory who lure innocent residents with fake land documents.
In an article, the Real Estate Developers Association of Nigeria stated that adequate measures must be implemented to regulate every sector of the economy, including the real estate industry, through a strengthening synergy with the government and all relevant stakeholders in the industry.
It added that operating in the sector had become tough due to fluctuating costs of project development, inflation rates, and other limitations.
Part of the statement read, “Currently, access to land and laws that regulate land acquisition in Nigeria require amendments. There is no law regulating the business of real estate development. “Some of the challenges facing the real estate business include but are not limited to the high cost of building approvals, building materials, inflation rate and fluctuations, infrastructure deficit, and lack of access to land.