ARTICLES

African/ Nigerian Real Estate Development: An Opinion

Real estate development in Nigeria/Africa is challenged by undue high interest rates often on interest-only lending basis with terms and conditions that are almost like borrowing from a 'mafia' organization - knee-jerk lenders. With that is the 'tooth-pulling-with-a-toothpick' exercise one experiences acquiring clear and marketable title to land. Nigeria land rights is prone and fraught with land title frauds. In addition, absence of secondary market to absorb mortgage backed securities, poor underwritten quality of the assets, makes unleashing real estate market potential in Africa like expecting the sun to rise from the west.

The valuation of properties in sub-Saharan Africa is still driven by valuation methodologies based on UK system. While those methodologies are good, there is need to change some of the approaches to incorporate local situation and improve the skill and training of the valuers. African governments are not effectively disposed and suited to policies and programs that promotes efficiencies in land development