Why rent, price of property increase — Olapade
By Wilson Adekumola
The Senior Partner, Biodun Olapade & Co, ESV Biodun Olapade has attributed the incessant increase in the rent of housing and price of property to the population surge and the current high rate of inflation Nigeria is facing adding that government needs to react to the shortage of housing by performing its constitutional right in creating enabling environment for the low income earners.
He said, in a chat with Nigerian NewsDirect, that, “Population is on the increase to almost 220 million people with shelter taking position as a basic of life existence thereby making house needs to have more pressure in demands on the little supply or increase of housing stock.
“Aside this, high inflation affects production of houses and the government will to incremental housing or enabling is low or not there.”
Olapade explained further that we need to understand that, “housing used interchangeably for accommodation most often, is not just the individual units of accommodation that provides shelter for living or daily home activities but one with basic utilities that support good living, promote good health including neighbourhood infrastructural that supports adequate security.”
While noting that provision of houses to meet the demands are in the hands of private sectors unlike government as expected or as available in other countries, he said what makes it worse is the role of government assuming control of what is not provided by them.
He affirmed that the effects of all these is promotion of capitalism instead of socialism, when housing is expected to be with high income property thriving with turnover of rent or capital appreciation on sale/purchase in the hands of the few rich people in high class with total neglect or detriment to the poor who are predominant of the population.
Asked how should government react to shortage of housing, Olapade, who has been in the real estate sector for almost three decades said, “Without a political will of our political leaders in governance at Federal and State level (with Local Government inclusive if it is allowed to function properly), nothing can be achieved on solving the problem, whereas, shelter as we all know is one of the three basics of life existence apart from clothing and food.
“Government needs to prioritise incremental housing over a long period of time.
“This will not only reduce the accumulated deficit gradually but provide the needs based on population increase and on continuous provision by government under a stable government, the scenario of inadequate, no affordability and inaccessible housing will be a thing of the past or better still reduce to the barest minimum.”
He, however, said the parameters to sustain a stable government under a single political party over a long period of time to solve housing problems with the political office holders having the same political will in Nigeria in continuous provision in the political dispensation are almost impossible; hence, the problem of inadequate and inaccessible housing may never end.
On the implication of non-affordable housing in the economy, he said, “Affordable housing is a chain that makes a circle. Once a link is cut or missing, the circle is not complete.
“Affordable housing for all will increase stock of houses and by extension provides employment for professional and skilled labour.
“Housing projects for the economy will increase circulation of fund in the economy, reduce crimes; provide psychological balance to human being.
“Less money would be needed for both preventive and curative health provisions which are social facilities expected from government, more taxes would be generated in the process of effective management of house production and occupation.
“Manufacturers and suppliers of building materials would increase the economy with high turnover of volume of funds that would improve banking sector with chain effects of infinite benefits of corresponding advantage.”
Olapade pointed out that most Nigerians are unaware of the necessity of government, constitutionally to provide shelter or at worse scenario, provide enabling environment for the four cardinal points to ‘affordable housing.’
He said, “In any case, if they are aware, they are ‘toothless bulldog’ as rule of laws are not promoted in total even if an action against government succeeds in the courts of law mandating government to provide unconditionally.”
