Real Estate Developers decry rising cost of building materials
The Chairman of Real Estate Developers Association of Nigeria, Lagos, Bamidele Onalaja, said the real estate sector is currently facing soaring inflation, which is creating a worrying trend and has a grave impact on the builds sector.
The Chairman said this at a press conference in Lagos State, South West Nigeria, where he called for the concerted effort of all players in he economy to salvage the situation.
He appealed to all the government agencies responsible for regulating the economy to work extra hard for the benefit of the common man, adding that shelter is a basic necessity for every Nigerian.
He lamented that the cost of real estate development has skyrocketed, following current economic trends which include inflation, and the weak Naira.
“Presently, all the factors that drive an increase in commodity prices in Nigeria, galloping inflation, volatile foreign exchange rate and cost of transporting goods from one point to another have all contributed to challenges confronting the real estate sector.
“Exchange rate in the country is not left behind as it is dwindling and increasing daily. This is a huge source of worry because this is a country where over 70 per cent of building materials are imported.”
Onalaja noted that a recent survey on the prices of building materials showed how inflation has badly affected the cost of acquiring and transporting them.
He added, “the price of granite, sharp sand, aluminum roofing sheet, tiles, iron rods, hardwood timber, among others, keeps skyrocketing, leaving us to grapple and making the cost of real estate construction skyrocket.”
Also, the Publicity Secretary of the Real Estate Developers Association of Nigeria, Ololade Abuta, explained that the labour cost of hiring professionals for real estate development was equally on the rise.
Abuta said, “In every economy, the real estate sector plays a pivotal role in the overall economic growth and development. This is why we, the Real Estate Developers Association of Nigeria, Lagos Chapter, are urging the government to find ways of lessening the impact of inflation on the citizens and operators of the real estate sector.
“We find it very important to sensitise the general public and would-be buyers of real estate products of this unprecedented inflation affecting the real estate market and the economy in general as this may affect the cost of delivering housing projects, including off-plan sales.”
Punch/Hauwa Abu
