Real Estate Can Boost Economic Development – ​​Analyst

Real estate professionals are calling for greater attention in the sector to capitalize on the economic potential of the industry.

The experts called out at a symposium titled ‘Real Estate as a Tool for Economic Transformation’.

The symposium was organized by the Lagos Business School Alumni Association and supported by Dr. Muhammad Qasim Balogun, CEO of Global PFI.

In her presentation, Mrs Uzo Oshogiwe, Managing Director of Afriland Properties, said the real estate sector has too many controversial taxes and vague ramifications that the government should adjust for the country’s economy. He said he was bogged down by the levies that entailed.

She pointed out that the main loophole in tax collection is due to government inefficiency, which contributes to a lack of trust in a sector worth more than $5 billion.

In developed countries, she said, property taxes were used to finance highly visible services, infrastructure projects, and other critical utilities.

Oshogiwe says:

I’m thinking, “It’s time to give the oil a rest and look elsewhere. A lot of people have been talking about farming. What about real estate?”

Dolapo Omidire, Founder and CEO of Estate Intel, said buying a home or building your own is one of the biggest decisions you’ll ever make.

He said it was time for the government and private sector to explore the possibility of helping people acquire their own homes.

Omidire said: Add in the other sub-segments, commercial real estate and farmland, and you’ll see that it’s a significant percentage.

“The true essence of showing this is to show the full impact that the real estate market currently has and could have, even if there is little growth or improvement, small or large declines. The size of it is staggering.”

Landmark Africa CEO Paul Onwuanibe said the best way to realize the economic prospects of property investment is to view it as a long-term investment.

The real estate mogul also spoke about why it became necessary for Nigeria to adopt Section 106 of the popular Urban Planning Act enacted in the United Kingdom in 1990.

Section 106 is a legal agreement between the applicant seeking planning permission (opens in new tab) and local planning authorities, used to reduce the impact of new homes on local communities and infrastructure. will be

In other words, a new home means another car on the road, and perhaps your kids will be attending schools nearby, putting a little more strain on local services.

As such, Section 106 contracts often require financial contributions to be made prior to project commencement. Unlike tariff-based community infrastructure taxes (opens in new tab), Section 106 charges are based on the specific needs of local communities, and some legislatures use the number of bedrooms in new homes to determine this rate. To do.

For example, the council may seek donations to local schools to build a new four-bedroom family house in an area with limited school space.

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