Land Use Charge:
STAKEHOLDERS in the real estate industry have said the Lagos State Government should increase the number of properties that have been valued under the amended Land Use Charge Law, 2018.
they noted that this would take away the burden of paying high levies on properties by a few in the state.
the Deputy president, Real estate Developers Association of Nigeria, Mr Akintoye Adeoye, who applauded the recent amendment of the LUC by the Lagos State House of Assembly, said the number of properties that were captured before the suspension of the process in 2018 was too small compared to the population of the state.
He said, “the percentage of properties that have been assessed is still less than 30 per cent. Rather than tax this number of people, it is better for the government to widen the net and bring more property owners onboard.
“it doesn’t make sense to tax just a few people, especially in a challenged economy like ours. We should bring in more people rather than increase the rate for a few.”
Adeoye said the state government’s decision to amend the LUC would encourage more people to invest in property in Lagos.
A six-man ad hoc committee, chaired by Rotimi Olowo, recently presented the report of its findings from a public hearing to the House of Assembly revealing that the review of the LUC was generally perceived to be arbitrary and unrealistic.
During the presentation, Olowo was quoted to have said the Section 1(2), “Pensioner” should be redefined to include all retirees resident in the state from federal and state institutions and from both private and corporate organisations domiciled in the state.
He said it was agreed by participants and stakeholders during the public hearing that vacant plots of land and unoccupied properties should be exempted from the LUC liabilities and a proper classification of commercial and residential property in the state should be done for the purpose of levying.
Among other amendment is the Section 17(c) (i) stating that there is no need for 50 per cent payment by aggrieved owners over disputed charges before their eligibility to appeal while aggrieved residents and property owners should pay the
Real estate, Mr Ayo ibaru, said it struggled.
According to him, developers became much more flexible on payment plans and significantly revised their product types and prices to accommodate their target market.
He stated that going forward, it would be necessary for real estate developers and service providers to consistently focus on products and services in tune with effective demand.
The Chief Executive Officer, Northcourt Real estate, Mr tayo Odunsi, predicted that construction costs could rise by mid-year as development activities increased.
He, however, stated that yields would favour operational real estate having development such as student accommodation and entertainment.
He said more international entrants were also expected to invest more in the country’s retail, hospitality and proptech space.