The Real Estate Developers Association of Nigeria (REDAN) says the recent hike in petrol prices, high interest rates and instability in exchange rates will negatively impact the real estate sector as developers will be left with no option than to hike cost of properties.
Addressing a press conference in Abuja on Wednesday, President of REDAN, Prince Akintoye Adeoye noted that the current economic situation has affected virtually all sectors including the real estate sector.
He added that REDAN has inaugurated 24 committees to enhance its operations and address other housing challenges in the country.
He said: “The committees will explore the capital market to source other funding modules, and promote housing development in the rural areas among others.”
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The Vice President, North Central of REDAN, ESV. Osilama E. Osilama said, “Cost of building materials has increased because we import most of the items we use.
“Therefore with high exchange rates and the latest increase in petrol prices, developers will definitely have to consider all those factors because what you bought at a certain amount last week must have increased as we speak, therefore the prices of houses have to increase as well.”
He added that there is a need for the government to call REDAN and other stakeholders to the table to proffer solutions to the challenges which could be either a construction bank or special palliative to boost the efficiency of the sector.
Also, the president of Premium Bakers Association of Nigeria (PBAN), Engr. Emmanuel Onuorah, said more people would be driven into poverty and unemployment because businesses would shut down with high cost of fuel.
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