The Institutional turbulences in marketing Real estate facilities in Nigeria; an Insider’s views (1)

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By Akhigbe Dominic.M. Esq

MON, SEPT 4 2017-theG7BJournal-In the last three weeks; we dwelt extensively with the seemingly humongous challenges of Marketing Real Estate facilities. Our readers responded to this very pleasantly. Some sent us series of questions which would be addressed in subsequent editions of PropertyLogic Incorporated.

A number of our Readers; mostly Players in the Real Estate subsector ‘accused’ us of being too foreign in the suggested approaches to tackling Real Estate marketing challenges in this cline. In response to this; we have decided to feature very ‘domesticated’ materials from one of our very good friends. We believe our readers would find this very valueless and timely. As always; we expect your comment and robust responses. Find below the contributions of a player and a professional in the Real Estate business in Nigeria:

Make the Customer the Center of your business:

Nothing happens until someone sells something a sales adage.

Shelter is a basic need of man just like food and clothing right from creation. It is not a luxury but a necessity to make life worth living; therefore houses need to be built as people must need them. A scholar once stated that, marketing is a managerial process of need identification and how to satisfy that need at a profit. Real estate marketing ordinarily should be like marketing in the mix of scarcity since Nigeria is in deficit of more than 17m housing units. Nevertheless you see empty Houses all over major towns in Nigeria either the people are unable to buy or rent. Housing and real estate development and marketing in Nigeria has inherent and fundamental challenges, let’s X-ray few of these challenges and proffer solutions for a way forward.

LAND ALLOCATION:- The Land Use Act in Nigeria domicile land matters in the hands of government not the Native owners. By this Act the, process of getting land documentation has created a lot of bureaucratic bottleneck, expensive and it’s almost a cartel. In most big cities like Abuja for instance, it is not easy to acquire land directly from Government by Estate developers. Granting of title papers and Deeds of assignment registration are very expensive Processes.

The FCDA/AGIS Process is so expensive, cumbersome and time consuming that its best imagined; even to buy land from second tier market the prices are overwhelming. As a developer, the cost of land is factored in selling prices; hence the total aggregate high prices of houses just to enable them make profit and be in business. Nigerians that want plots to build own houses hardly realized their hope. What Government should do is to ease the bureaucratic bottleneck and reduce the costs and charges of land allocation and processes. Developers with proven and verifiable track records should be given express approval and low charges for acquiring land since they are building for the Citizens. By this, prices per unit will drastically reduce. Individuals that want land not more than 3600SQM2 should be given express approval and within the shortest possible time. Government need to sanitize the system to rid this housing menace. I call on this Government to look into this land allocation issue so that change could be effected.

DEVELOPMENT CONTROL & OTHER APPROVAL AGENCIES: Let Development Control and other approval given agencies have an involving method in their approval and supervisory system to ease the work of those that want to build. The more proactive they are the better for the industry.

…to be continued.…Materials contributed by; A.A. Amos MBA, FCAI

Akhigbe Dominic.M. Esq., /Property Law Expert/CEO, H.I.E Properties & Homes Ltd/SENIOR STRATEGIC PARTNER, PropertyLogic Incorporated/Seasoned Business Coach/Columnist of The BusinessDay/Contributing Editor, govandbusinessjournal.com.ng

DCSL 90X780

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