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T H I S D AY • TUESDAY, NOVEMBER 22, 2016
PROPERTY & ENVIRONMENT
‘Stakeholders Hypocritical about Affordable Housing’ Major stakeholders in the nation’s housing sector that can ensure the availability of affordable housing are not practicing what they preach, Dele Martins, Managing Director of HFP Construction Company, has said. “To be honest the topic of affordable housing is one that has been much talked about in Nigeria but when it comes to implementation is shrouded in extreme hypocrisy by the main stakeholders who can make it happen, whether they are from the private or public sector or indeed the financial sector.” Mr. ‘Dele Martins, Chief Executive Officer, HFP Construction company stated this in a keynote address on provision of affordable housing delivered at the new corporate identity launch of Knightstone Properties Ltd and its ambassador unveiling event in Lagos, recently Martins said, “In my humble opinion the challenges of providing affordable housing in Nigeria are very well known and have been rehearsed over and over again to the extent that I rather doubt there is anything new to add. The challenges highlighted below are therefore not original to me and are listed more by way of reminder of the issues that need to be addressed with sincerity if we are serious about tackling the massive housing deficit we have in Nigeria and in particular the provision of affordable housing. “The latest figures available indicate that Nigeria has an estimated population of 170 million people which is growing by approximately 2.8% per annum (source: World Bank). It is also estimated that there is an 18-million-unit deficit in housing stock and that Nigeria needs to build approximately 700,000 housing units annually if we are to make a noticeable impact on the deficit. Presently, we are barely building a 100,000 housing units annually. “The true scale of the housing deficit challenge can be gleaned from the fact that it is estimated that 108 million Nigerians are ‘homeless’ based on an average family of six people per housing unit. “ Several factors, he said have been adduced by analysts and experts in the real estate and allied sectors for the absence of affordable housing in Nigeria, including: Unfavourable government policies, lack of mortgages for potential buyers and unstable investment environment; Difficulties and lack of transparency associated with acquiring affordable land for the development of affordable housing, as well as, the bureaucracy associated with obtaining title documents to acquired or transferred land; and Exorbitant cost of consent and other fees associated with the transfer of Land. He said other factors included, unavailability and difficulty of accessing affordable mortgages for the purchase of houses by individuals; bureaucracy and difficulties associated with obtaining building and other regulatory
approvals for the construction of affordable housing; the high and escalating cost of building materials and over dependence on imported building materials. Non-alignment of the interests of the various stakeholders particularly the developers, commercial and mortgage banks on the one hand and the intended beneficiaries of affordable housing on the other. The former wants to maximize profit whilst the latter wants housing that is cheap, decent and affordable; Unstable and unfavourable exchange rate policies; Absence of fiscal incentives by Government to make affordable housing development attractive; Lack of provision by Government of the primary infrastructure required to support the development of affordable estates including roads as well as access to water and electricity; and Indiscipline and corruption in the implementation of affordable housing schemes. “I have no doubt that more items can be added to the above list but for present purposes it gives us an idea of what issues need to be tackled,” he said. According to him, the importance of housing to the citizenry is underscored by the fact that it is mentioned immediately after Food on the list of needs of man. “If we are to succeed in our claimed quest for the provision of affordable housing to the citizens of Nigeria and in particular low income earners there is an urgent need for governments at all levels to approach the subject holistically, sincerely and a great deal of commitment. “Governments at all levels need to lead the formulation of a comprehensive policy designed with the input of all stakeholders, and implemented with zeal and vigour at all levels. At the heart of every policy must be the interests of the target beneficiaries of affordable housing. “In essence there is a need to work to a predetermined answer starting from a clear definition of what constitutes affordable housing not only in Nigeria as a whole but in each sub-region or division of Nigeria. What is affordable in Lagos State may constitute luxury in Oyo State and what is affordable in Badagry will differ from what is affordable in Ikorodu and each case depends on the prevailing socio-economic conditions in each locality or sub-division. “After determining what is affordable for each locality or region an appropriate design of house should now be made to fit the benchmark for the relevant area. As much as possible the construction materials to be used should come from the locality or region in which the affordable housing is to be constructed so that employment is generated for the local people and cost of construction fits the relevant local profile. In fact, local artisans and contractors should be encouraged to form themselves into cooperatives to bid for the supply of local construction materials.”
Brains & Hammers Partners LEGEND for Fiber Deployment in Abuja Estates Bennett Oghifo Brains & Hammers is collaborating with LEGEND, is an exclusive multi-media brand to equip over 3,000 houses in Abuja with future-proof fiber-to-thehome, which will open up a new world of possibilities for owners and residents of these properties. With Fiber in the home, a house can become a smart home through the ‘Internet of Things (IoT)’, where devices in the home are connected to the internet and are able to send and receive data, said officials of the companies. Over the last few years, Brains & Hammers have revolutionised the real estate industry in Nigeria, by delivering unique, beautiful, yet highly functional buildings that are truly value for money – the perfect mix of superior design, exquisite craftsmanship and price. LEGEND, is an exclusive multi-media brand that offers
Premium cable TV entertainment, unlimited Internet access, local and international voice calls, automated home management & security services, all on the same connection; an innovation in multimedia services, powered by fiber-optic technology infrastructure. “Imagine being able to remotely control your lights and AC equipment before you come home? To get remote access to cameras in your home to see what the kids are up to? To play music wirelessly across different rooms with access to international radio and music stations? What about streaming and downloading as much content as you want on a ultrafast internet connection with no buffering? All these and more are made possible by Fiber-optic connectivity, which delivers truly unlimited internet, premium video content, call services and more on a single connection. “This deployment
will be the largest Fiber-to-thehome rollout in Sub-Saharan Africa and heralds a new era of better living for Nigerian homeowners. The Executive Director of Brains and Hammers, speaking of this partnership, says: “Brains & Hammers constructs houses with only the utmost attention to detail, creating buildings and communities that become reference points in the industry – both for individual homeowners and the industry at large. Professionally, our aim is to be a benchmark for the entire residential construction industry. We aim to be the real estate developer that other developers emulate, both in terms of our actual end products, and of our management/business approach.” LEGEND is a product brand of Suburban Fiber Company, a company that maintains strong foundations in the Nigerian multi-media space, with over a decade of pioneering and
successful operations. The CMO of Suburban Fiber Company, Gabriel Gab-Umoden, speaking on the partnership, says: “The Legend brand offerings are second to none in Nigeria, with a reliable network, superior entertainment and ancillary services all offered at price points that are accessible to a broad spectrum of the market. We have successfully rolled out our services to thousands of homes and satisfied customers, and we are eager to deliver true broadband to more Nigerian homes at such a large scale.” The project is expected to commence in August 2016 and will be swiftly rolled out in all Brains & Hammers estates across the Abuja metropolis. With this landmark achievement, fiberoptic connectivity will become part of the blueprint for estate developments in the country going forward, as Nigeria looks to leap frog other developing nations in this regard.
L-R: Executive Director, Knightstone Properties Ltd, Mr. Akinola Akande; Managing Director/CEO, Knightstone Properties Ltd, Mr. Adeniyi Adams; Brand Ambassador and Nollywood star, Knightstone Properties Ltd, Bukky Wright; and Lead Engineer, Knightstone Properties Ltd, Olajide Ogundare at the new corporate identity launch of Knightstone Properties Ltd in Lagos... recently
Fine and Country International Realty Refined Investor Series Holds Today Fine and Country International Realty 2016 edition of the Refined Investor Series (RIS) holds today and will focus on ‘Unlocking Smart Real Estate Opportunities During a Recession’. This unique platform will be chaired by Mrs. Bola Adesola, MD/CEO of Standard Chartered Bank, along with other leading stakeholders. The Refined Investor Series is a real estate thoughtleadership series targeted at high net-worth investors, economic influencers, real estate developers, property enthusiasts and aspiring investors. Coming on the heels of Fine and Country West Africa’s 8th anniversary in Nigeria, this year’s event is scheduled to hold on Tuesday, November 22, 2016, 9am - 2pm at the Wheatbaker Hotel, Ikoyi, Lagos State. The theme for the event is - “Out of the Box”: Unlocking Smart Real Estate Opportunities during a Recession. The Refined Investor Series will generate high level conversations on smart real
estate investment strategies and opportunities in the Nigerian, UK and global property market, during a period of recession and transition. Some of the highlights and interesting conversations to be expected at the upcoming Refined Investor Series 2016 edition are: ‘An Economic Melt Down or an Opportunity to Re-Invent? What is the impact of the economy on real estate? “Are we having an economic meltdown or an opportunity to re-invent true value and a sustainable real estate market that creates wealth for real investors and users? What is the impact of financial and economic policies on the real estate market, and where are the unique opportunities? Which investors are best suited for the out-of-the-box opportunities? What are the best ways and when is the best time to unlock these creative opportunities? They will also discuss ‘The Economics of Definitions: How They Affect Valuation
and Perception of Value. “With an increasing number of residential properties being represented as luxury, and in the commercial space, most offices being offered as Grade A Prime Offices, there is an increasing need for real estate investors/occupiers to understand what exactly they are getting, what matters most and what constitutes luxury residential property or prime Grade A office. How do these factors affect valuation and perception of value?” ‘Pricing Strategies for Real Estate in a Volatile Economy’ in also on the platform. “How Investors price prime offices and residential properties in a recession and volatile economy? Are there practical strategies apart from price wars for commercial landlords to ensure that the increasing stock of prime offices and premium residential do not remain on the proverbial shelf for longer than is necessary? What is the right pricing strategy in the current market? What are the
real drivers of residential and commercial leasing decisions? What do corporate tenants really care about?” Other topics are: ‘Emerging New Cities: Urban cities or ghost towns in the making? “What is the future of Middle class urban residential living? Where are the opportunities? How do investors get to access them and what’s the best way to get maximum value from new urban cities or projects? Are there well thought through?” ‘Real Estate Value Enhancers’: The economics and politics of design specifications and how they affect facilities management & service charge. “What are the real risks and benefits of investing or living in a multi-owner residential development? What are the real facts and figures behind service charges in both residential and commercial properties and how can they be managed efficiently while preserving asset value and user experience? What’s the role of legal documentation in preserving real estate wealth?”