By Matthew Denis
The Nigerian Institution of Estate Surveyors and Valuers (NIESV) has tasked Government agencies and the private sectors to always patronise professional Estate Surveyors and Valuers as the first experts in property Development chains to give them the right advices before buying or developing landed properties to curb problems of building collapses, abandonment of properties as a result of underutilisation and lack of funds to complete the projects.
The President of and Chairman of Council NIESV, ESV. JohnBull Amayaevbo made the disclosure during an interview with Journalists at the ongoing Mandatory Continuing Professional Development (MCPD) seminar organised by the Abuja branch held on Wednesday.
He said, “Our job is to carry out the feasibility and valuability appraisal of any landed property. In the Developed countries when you have an idea you will look for professionals and when you are talking of Development of properties the first professional you should approach is the estate surveyor and Valuer who will determine whether the project you want to buy is feasible or valuable.
The President stressed that landed properties might be feasible and not valuable and vice versa because of the legislation approach to that project.
He said, “We estate surveyors and Valuers are the nerve base of building chains considering the fact that we are the first consultants in terms of guidance for the properties acquisition and consulted at the end of the chain for managerial aspects because we understand the market situation.”
ESV Amayaevbo enjoined the participants to critically study the 11 strategies to enhance their activities as addressed during the session by the keynote speaker.
The Chairman of Abuja Branch, ESV Adebanjo Meshach Adeleke while speaking during his opening remark said, “I welcome you all to this Mandatory Continuing Professional Development (MCPD) seminar, where we will delve into the exciting topic of ‘Business Strategies in Curbing Financial Constraint in Real Estate Development.”
He highlighted that the major challenges of real estate financing in Nigeria today include low capacity of mortgage and commercial banks, high interest rates on mortgage loans, difficulties in approving and obtaining mortgage loans.
The Chairman revealed that other hindrances are underutilisation of the capital market, and difficulties in obtaining property titles.
According to him, these challenges can hinder the growth and development of the real estate sector in the country.
He said, “Through this seminar we will explore effective business strategies to overcome these obstacles and proffer innovative solutions as our erudite and seasoned resource persons and scholars are ready to do justice to the topic and other allied topics of this seminar.
“I implore all participants to make use of the seminar to improve on their knowledge in improving the practice of estate surveying, valuation and property development in extension as together we can pave the way for a thriving real estate industry.”
The Registrar, Council of Registered Builders in Nigeria (CRBN), Builder Adetunji Adeniran while speaking at the event tasked the participants to avoid sharp practices but operate within the framework of their ethical conducts.
While lecturing on Financial constraints he said, “Benchmark interest rate in the country is currently reported at 18.75 percent while actual bank lending rate hovers around 30 percent p.a.
“The world over, funds drawn or provided at such interest rates do not provide resources that could be applied for real estate development. Aside from the challenge of high interest rate, there is also that of tenure of loans and facilities as available funds are more short-term in nature.
“Real estate development requires long term funds at low interest rates, therefore the combination of high interest rates for short periods is the exact opposite of the nature of funds needed.”
According to him, it should be said that solutions are being discussed around investment of long-term funds (such as pensions funds) in the sector. These conversations are however bogged-down and slow at yielding desired results owing to complexities and uncertainties in the real estate market in which the funds are to be invested.
“Clearly, in the present situation there appears to be a case of funds mismatch. While one may say there are funds in banks, they cannot be applied or deployed for the use intended in the real estate industry.
The Registrar noted that the challenges faced in the course of running any business are numerous, more so a business like the real estate development in a VUCA environment like the one we and ourselves.
He pointed out that no challenge is insurmountable with the right strategies and techniques.
“You can’t knock off real estate development, especially as ESVs, without giving it a try but do so advisedly, and within the bounds of other knowledge areas, skills and experiences you already possess and hopefully you’ll thrive in your endeavours.”
The highlights of the seminar were panel sessions, interactions and goodwill messages from Veteran Estate Surveyors and Valuers to enhance the activities of members.