Firm task govt on regulatory, legal issues in real estate sector

AREAL estate firm, Ubosi Eleh and Company has urged the government to pay more attention to addressing the regulatory and legal issues in the sector.

The firm also calls on the government to create an enabling environment for the private sector to operate in.

The firm’s principal partner, Emeka Eleh made the calls at a real estate webinar themed: ‘ The 2024 Budget and the real estate sector implications.’ According to him, if there is an enabling environment for the real estate sector, it will enable the private sector to meet the supply side of housing.

His words: “Considering our huge funding constraints, it is certain that the government alone cannot solve our housing and infrastructural problems. Government should do more to address the regulatory constraints affecting the sector and create a conducive environment for the private sector to operate.

“The government alone cannot provide the housing required for an average Nigerian. The government can provide it in an efficient and timely way that is required. Rather than start projects that cannot be finished, why can’t the government create an enabling environment for the private sector to act? The private sector will be able to meet the supply side.

“The private sector can deal with the demand side or the supply side by constructing houses, it’s a business which people go into to generate profit. If the environment is right, investors will come in. Let the government play its role in terms of regulation, if that is done, the private sector can deal with the supply end, while the government works on the demand by stimulating it through economic growth and deepening mortgage.”

He explained that deepening of mortgage penetration is to grant mortgages to civil servants, while the private sector does the construction in a more efficient process. “The private sector can deal with the supply end of the market, while the government stimulates the demand end through giving its staff a mortgage.”

The government, he said, should concentrate more on stimulating demand through striving for a robust economic growth and ensuring mortgage penetration in the economy.

Speaking on the 2024 budget ( Appropriate Bill) termed “Budget of Renewed Hope” which was signed into law by the President Bola Tinubu on January 1, 2024; Eleh said the allocation of N99.9 billion to the Federal Ministry of Housing and Urban Development ( FMHUD) is like a drop in the ocean considering the housing needs.

He noted that the budget in totality gives room for some hope in the expected expenditure of N9.99trillion on capital projects, proposed massive infrastructural works to the tune of N1.32trillion cutting across several ministries like Works, Transport, Aviation and Water Resources.