There are so many completed buildings in Nigeria that are unoccupied. Also, the interest in housing markets has grown in recent years, but relatively little is known about how and why the change.
In a recent report by The PUNCH, the Estate Surveyors and Valuers Registration Board of Nigeria explains that the reason for the massive number of empty houses across the country despite the huge deficit in the housing sector is because most developers of the properties failed to consider market demands.
Experts advise that it is important to explore housing demand by examining the aspirations, attitudes and wants of households before investing in the venture. They note that the reasons why people move and how this affects their demand for houses are highly complex.
They say the reason for such movements may not necessarily be a response to triggers and push–pull factors. Experts say there is no magic ingredient that causes some property markets to rise more quickly than others, adding that it is the duty of the prospective investor to understand why he needs to build a property for rent in a given location at a given time.
They state that the bundle of factors driving residential mobility, and ultimately housing market change, differ in various areas across the country. Experts state that within the context of the overall housing field, people’s decisions to move appears to be a result of a complex interplay among factors such as resources, residential perceptions and understandings, notions of place, and identity and dispositions or how they see the world.
According to ESVARBON recently in Abuja, there are so many unoccupied completed houses in virtually all states in Nigeria. The board also notes that the cost of most of these empty buildings are far beyond the purchasing power of many Nigerians, meaning that many citizens in the country lack the resources to acquire these buildings.
The board, therefore, notes that it is important for investors in the built environment to consider the purchasing power of their prospective customers before erecting structures to be sold in the market.
The Registrar of the board, Ifeanyi Uzowanne, in an interview with our correspondent on the sidelines of the 2018 Estate Surveyors and Valuers Assembly/unveiling of the Nigeria Valuation Standards in Abuja, says the huge housing deficit in Nigeria would have been reduced considerably if investors in the sector had taken time to understand the housing needs of most citizens in Nigeria.
He says, “People say there is housing deficit of large quantum without having due regard to the fact that there is quite a number of substantial properties that are currently unoccupied. So why are these houses unoccupied? Is it because they are built without reference to what the market wants or that the rents are exorbitant?
As the regulatory body of a profession that has to do with housing, we are concerned and that is why we say people should go to practitioners when they are making investments in housing, so that they can put up houses that will meet the needs of consumers.”
Uzowanne adds, “Most products are made based on what the market wants. When the people want two bedroom apartments and you give them duplexes, you are not building to what they need. And if you build duplexes you are not meeting the needs of the people. So there is a great need for investors in housing to seek professional advice in order to bring to the market a product that will sell seamlessly and that is widely accepted by consumers.”
Experts also note that the desire to satisfy aspirations appear to be particularly important for many households. They say investors should consider this as well when building, as some individuals are willing to pay for properties that satisfy their aspirations. Experts say customers aspirations may be categorised into two groups and this include those concerned with buying into a lifestyle, and those concerned with their personal status and, in particular, the household’s position on the housing ladder and in society.
They noted that a recurring theme across some case studies was a preference among respondents to live among people they felt were similar to themselves. They also state that increasingly, housing is becoming an investment commodity more akin to stocks and shares.
Experts, however, note that a number of negative consequences associated with rising markets have been identified relating to affordability, community cohesion and the cost of regeneration programmes.
Meanwhile, Uzowanne note that the valuation standard that was unveiled by ESVARBON recently in Abuja can help both dealers in the sales properties to understand customers’ demands. He says, “The standards that we’ve unveiled will help address this issue in a way, because most times, it is not only estate valuers who produce houses. So the public is also expected to make sure that they don’t overprice properties and keep it out of the reach of some others who want it.”
On other significance of the Nigerian Valuation Standards, he says, “Valuation of assets must conform with international standards and this book captures the global standards on valuation and brings it into peculiarity in the Nigerian environment. So when a valuation is done here in Nigeria, the same work and report of that valuation will be recognised globally also.”
Uzowanne explains that the regulatory body noticed some discontent among valuers and decided to put together the book in order to address the concerns of operators in the sector.
He says, “We realise that the users of valuation services were showing discontent in what they were getting and as a regulatory body of the profession it was imperative that that gap be filled. So with this book, registered surveyors and valuers will show great proficiency in valuation.
“This book is going to impact greatly in all sectors, particularly in the housing sector, because most times there are great volumes of valuation of properties involving houses. It will also go a long way in encouraging investments in houses because people will get value for their investments.”
For the Founder, College of Estate Management Reading Alumni Association of Nigeria and Second National Vice- President, Nigerian Institution of Estate Surveyors and Valuers, Johnbull Amayaevbo, investors or prospective investors in the built environment must always improve on their capacities in order to effectively meet the demands of their respective clients.
Okechukwu Nnodim, Abuja
Culled from punchng.com
