Ownership Realty MD, Olayinka-Martins, Identifies rental income denial as factor against Real Estate growth in Nigeria.
The managing Director, Ownership Realty,Dr Akeem Olayinka-Martins has identified factors causing decline in residential real Estat investments in the country.
Olayinka-Martins who was speaking at a workshop on Real estate development in Nigeria held in Ibadan on Monday said delay and denial of rental income for investors is one major reason discouraging interest from the investors.
According to him,”the difficulty in recupping investments due to irregular payment of rents has discouraged investors from tying their money to the ventures since every investor expect returns as at when due”.
The Real Estate expert said the unfavorable tenancy laws being enacted at every tier of government has not also encourage investors just as the level of Insecurity pervading the country does not encourage investment in residential real estate investments.
“The level of Insecurity in the country at the moment has not encouraged investors to invest their money in the residential real estate adding that government at all levels should double their efforts to address the security issues in the country.
“Most of the upcoming developments in residential areas are now turning to hospitality business such as hotels, lounges because of assured return on investments”. He noted.
Other factors identified by the Realtor includes prolonged judicial process, inflation and high cost of building materials.
Others are high cost of land acquisition in urban areas as well as maintenance costs.
Dr Akeem Olayinka-Martins urged governmts at all levels to consider subsidising cost of building materials to attract more investors in order to reduce high cost of residential real estates in the country.