Real Estate

Operators score Nigeria property sector low in 1st half of 2016

Some operators in the property sector on Friday scored the performance of the sector low in the first half of the year, attributing the development to the country’s dwindling socioeconomic situation.
The operators expressed the views in separate interviews with the News Agency of Nigeria (NAN) in Lagos.
According to them, the economic meltdown of the country has discouraged investors from investing in the property industry.
Mr Kenneth Nduka, the Vice-President, Nigerian Institute of Building (NIOB) said that the economic situation had left some prospective investors with little or no money for investment.
Nduka said that the few investors who had the fund for investment were holding on to it until they were sure of the true direction of the economy.
“Though the property industry has been on the downward slide for over three years now; the sector is still not yet picking up.
“But the condition seems to increase since the persistent fall in oil prices; fall in the value of naira and security challenges take toll on the economy.
“But we are optimistic that the situation will improve by second-half of 2016, when the impact of the flexible exchange rate policy and implementation of the budget will fully reflect on the economy,” he said.
Mr Ade Oshinubi, the President, Association of Building Artisans of Nigeria (ASBAN) attributed the poor performance of the sector to low participation of indigenous artisans and professionals in the industry.
He said that the industry had been dominated and taken over by foreigners.
According to him, the growth of a country depends largely on the productivity of its indigenes, saying that the output of citizens determined the state of the Gross Domestic Product (GDP).
“But most of the construction contracts in the country are being awarded to foreigners; and this has no positive impact on our economy,” the ASBAN chief said.
Oshinubi said that there was need for government, private individuals, organisations and stakeholders to engage more of the services of the local artisans and professionals for improved productivity in the sector.
He said that government should make a national policy that would empower and give Nigerian professionals more opportunities to participate in activities of the economy.

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