Practitioners seek removal of impediments to Africa’s real estate

EXPERTS have advocated removal of impediments to cross border transactions and collaboration among real estate professionals in Africa as a means to grow the sector.

They also stated the urgency to implement accessible and affordable mortgage rates in the continent, while calling for the removal of other critical impediments to free movement of trade and real estate services across the regions.

The experts spoke at a PanAfrican Real Estate Webinar series 2024 entitled: ‘ Cross Border Collaboration in Promoting Real Estate Practice across Africa organised by the Nigerian Institution of Estate Surveyors and Valuers ( NIESV), Lagos branch, also made case for the utilisation of Artificial Intelligence ( AI) to ensure sustainable real estate development.

Leading the call, a fellow of Nigerian Institution of Estate Surveyors and Valuers, Mr Chudi Ubosi, argued that professionals in the continent need governments to provide an enabling environment for affordable mortgage as the issue of high mortgage rate appears to be a general development in Africa.

He lamented a situation whereby mortgage in Nigeria is limited as commercial loans range between 30 to 35 per cent and fewer years. He, therefore, stressed the need for a change through collaboration and advocacy by the professionals alongside the government to make housing accessible to the citizens as witnessed in advanced nations.

The Managing Director/ Chief Executive Officer, Abri Group of Companies, Mrs. Vicky Sampah, observed that mortgage loans in Ghana are unaffordable as only those working with the government and private sector benefit, while the informal sector is locked out. She disclosed that the mortgage rate in Ghana is within 12 to 20 per cent based on dollar and local currency ( Cedis) rates.

Sampah said practitioners in Africa must embrace Property Technology ( Proptech) and AI to enhance property listing by real estate agents and proper description of available homes for purchasers.

She added that the technologies will give extra service to make the industry better and won't threaten available jobs. Sampah, however, warned that there must be ethical considerations in deploying the tools in real estate activities.

According to her, there was a need to engage in regular discussions, collaboration and actions that are critical to grow the African real estate sector, as well as learn from experiences from the global market. To her, one crucial way to remove impediments to cross border transactions is through education and advocacy with relevant stakeholders.

The Chairman, Governing Council, Real Estate lnstitute of East Africa, Uganda, Mr Vincent Agaba, explained that cooperation, building trust among professionals is key to grow real estate service, adding that this will further help the continent to develop momentum for harmonious legislation.

He also lamented the high mortgage rate of 10.5 per cent ( for foreign currency) and 22.5 per cent ( for local currency) in Uganda.

The Managing Director, Lansdowne Property Group, South Africa, Mr Jonathan Kohler, said the current political landscape in Africa makes it impossible for property investors to travel to do business; it discourages growth of real estate business and services in the continent. He, therefore, called for easy access to visas for travels, building of relationships and trust among professionals to enhance the real estate industry. He noted that the penetration of Proptech is high in South Africa, especially in marketing real estate products, and property management. However, he said, people still prefer physical inspections and one- on- one transactions of property.

NIESV President, Mr Johnbull Amayaevbo, expressed concerns that most countries in the continent have refused to sign the African Continental Free Trade Area ( AFCFTA) services agreement in the treaty, which seeks to enable free movement of professional services.