The Lagos State Real Estate Regulatory Authority LASRERA has convened a stakeholders forum with the estate agents and other critical stakeholders in the building sector in the State.
This according to the agency is to expose them to the industry regulations and expectations, as well as explore diverse opportunities inherent in the Real Estate.
The Special Adviser to the Lagos State Governor on Housing, Mrs Toke Benson-Awoyinka said that the State would continue to ensure effective and inclusive environment service delivery for Real Estate business and investments to thrive in Lagos State.
Speaking at the forum with the theme: ‘Redefining Opportunities in Real Estate: Regulations and Expectations’, the Special Adviser explained the event was geared towards ensuring that the policies of the Lagos State Government for the Real Estate industry gains the confidence of Real Estate Agents, with a view to curb fraudulent practices and deface negative and potential risk in the industry.
She said the overall intention was for all participants to learn new and relevant skills that would be useful in up-scaling their businesses and develop the industry as a whole.
“What we are seeking is to sanitize and regulate the Industry, as well as boost the investment of the State and to grow the GDP of the State through real estate investment. And we are trying to make it so transparent so we can have an influx of foreign investment into the State in the real estate”, she said
Positive impacts on real estate business
She mentioned that the continuous rise in population, migration and demand for properties from citizens, will lead to an increase in the demand for accommodation, property investors and homeownership in Lagos State hence the need for all practitioners in this sector to rise up to this challenge and be ready to leverage on this fact.
According to her, “the Real Estate industry has visible and invisible untapped opportunities that can positively impact on the businesses of Estate Agents and other investors in the industry. To achieve this, it would require the collaboration of all industry stakeholders including the real estate professionals, practitioners and property developers to boost the sector in the State.
“To unleash the endless opportunities that the industry has to offer, regulations must be put in place to enact and protect the interest of investors and the general public. The regulations we will discuss here today will lead to enforcement by the State Government.
“With these regulations, I can assure you that there will be transparency in the Real Estate industry. All hands must therefore be on deck to tackle all the challenges in the industry, alleviate the fears of the public and investors, so that we can all benefit from these endless opportunities in this industry and emerge stronger.”
The Special Adviser added that in line with this present administration of Governor Babajide Sanwo-Olu’s T.H.E.M.E.S Agenda of making Lagos State a 21st Century Economy, the State Government would intensify efforts to curb fraudulent activities in this industry with the right laws and regulations.
LASRERA Bill
Speaking on the LASRERA bill which was recently passed by the State House of Assembly, the Commissioner for Justice and Attorney General of Lagos State, Mr Moyosore Onigbanjo was optimistic that the bill when approved by the Governor would open opportunities for players in the real estate market.
“LASRERA bill which the State House of Assembly passed in July 2021 essentially is to regulate real estate transactions in Lagos State. We believe it’s about time we stop the regime of all manners of transactions which are not being captured in the State.
“LASRERA is set up to capture every single real estate transactions in the State to bring transparency to the entire process, eliminate fraud, sharp practices, unethical practice and to give confidence to investors that when they put their money into a project, they will realize the full value of it in Lagos State.
“And to also ensure that those who want to buy property or lease apartment, have confidence that when they give a developer or an agent their money, they will get what they bargained for”, he said.
Onigbanjo said that what the State Government is doing at the moment is to sanitize the Industry and to ensure that Lagos State is a state in which there are certainties concerning all real estate transactions in the State.
He said the hitherto over-regulated or unregulated system in the sector has changed as the current administration is working to achieve holistic regulated regime that will build confidence at all levels.
Regulatory framework
The Keynote Speaker at the event, Mr Gboyega Fatimilehin explained that it is pertinent to bring to the fore issues that affect estate agency business particularly on transparency in the sector.
Speaking on the topic: ‘Real Estate Regulations as it affects Estate Agency’, Fatimilehin said that any country with an existing regulatory framework for the real estate sector and its services are better able to attract investors than those that do not.
And this according to him allows for a transparent and effective functioning of the sector which gives the regulators the financial and administrative independence to aid in the regulations which reassures investors.
He said “the various issues that must be addressed in the real estate agency business need pragmatic and feasible solutions and I am grateful for this opportunity to share some of my thoughts on the implementation of regulation.
“A well-regulated, fully functioning, and transparent real estate market can be a very important factor in the growth of a nation’s economy. A market that is settled, predictable and trusted can experience high levels of growth and investment. The data that becomes available through a greater degree of transparency will also help related segments of the market including banks and insurance; the mortgage finance sector will also benefit greatly.”
Citing the findings of the Centre for Affordable Housing Finance which show that Nigeria’s housing has an estimated housing deficit of 17 million units, Fatimilehin said that in a market without easily accessible information about the type of housing that is required, investment decisions are difficult to make.
“A developer embarking on a project may face uncertainty about the correct rental and capital values – this uncertainty makes it harder to access capital”, he added
He however pointed out that one of the opportunities that is available to Lagos as a consequence of the sanitisation and professionalization of the sector through regulation is a higher level of transparency which will lead to more information for stakeholders in the real estate sector.
Others who spoke at the Panel sessions discussed issues around estate agency, developing a robust template for the sector as well as ensuring coordinated alignment towards a proper regulation of the real estate market.
Nneka Ukachukwu
