To address the real estate market in a more focused way, experts have called for stratification of the sector to ensure social and affordable housing.
They spoke at the 2017 yearly Real Estate Unite summit in Lagos, according to them, there is still huge opportunities for the real estate industry if the right things are done.
The summit has as its topic: “ Africa’s Real Estate, What’s New?” Chairman and Chief Executive officer of Mixta Africa, SA, Mr. Deji Alli, who expanded the topic, stressed the need for Government to come out with a scheme for the low end of the market by providing social housing, because of it advantages, which includes taxable income , which government is not receiving from such a large market.
According to him, home ownership is aspirational and should start from the base because there is no viable mall without the low income group.
He noted that the real sector with assets put on the region of $26 trillion has important role of the real sector in asset economic stability.
According to him, with the growing urban population and potential need for housing , which could create unimaginable crisis , there is a big opportunity for both government and private sector.
The real sector, he said, has the greatest multiplier effect in the economy because of its relationship between capital flow and economic stability .
He however regretted that government appears to be missing the point, while private sector seemed to be helpless with narrow focus.
To stimulate the sector , Alli said there is need for partnership between government and private sectors in order to come out with the right policy that will drive the sector because it has what it takes to transform African economy .
Referring to the success recorded in the pension scheme Alli said , government should come out with right policy especially in the social housing because of the need to take care of the low income sector , which is critical to overall economic growth.
He commended the Federal government for earmarking N100 billion for the family home fund under its Social Investment Programme but said the Private sector to engage need to engage the government in order take up the opportunity .
“There is need to introduce special incentive to make it a reality. 1. 5 million new homes for low income people within 2 years and focus should be in the lower end of the market not on the higher end”, he said.
Contributing, Dr Doyin Salami, of the Lagos business school , said real estate professionals must to come together and engage policy makers to make progress..
According to him despite the fact that real estate constitutes seven percent of the Nigerian economy , it has continue to shrink with negative growth.
He stressed the need for all stakeholders to deal with the demographic challenges , which, he said, has the potentials to create social in cohesion.
