The Nation Newspaper

Category: Building & Properties

  • Rise in inflation triggers rental defaults

    The Nigerian Institution of Estate Surveyors &Valuers (NIESV ), Lagos branch, has decried the state of the economy and what it called ‘geometric progression’ in expenditure by the citizenry compared to their income.

    The situation, the body said, has been  further compounded with the inflation rate hitting an all-time high of about 13 per cent.

    This, coupled with the hike in fuel price and its attendant effect on the purchasing power of people, the body said, may have led to the high rate of rental defaults in the country.

    According to its Vice Chairman,  Lagos Branch, Mr.  Orimalade Olurogba, 80 per cent of properties in his care has defaulting tenants, who, he said, met their obligations previously. He noted that some sectors, including oil and gas, hitherto known to offer job security, have been the worst hit lately.

    Olurogba, who spoke during the Institution’s Week in Lagos, regretted the oil and gas sector is affected.

    “A lot of people are being retrenched; the high end or the upper middle class people working in oil companies and who live Victoria Garden City and Lekki Phase 1 and other areas whose rentals are up to N4million and above are struggling. Some are even moving to cheaper accommodation, even as the once upon a time ‘ideal and choice tenants’ that most landlords look forward to occupying their properties are currently defaulting because of the uncertainties in the economy,” he said.

    Olurogba noted that the state of the economy is affecting the body’s legitimate streams of income and urged for urgent action by the government.

    On quackery, he revealed that the institution has established a body to regulate the practice of the agency by training middle cadre professionals on the rudiments of the profession and ethics to bring them up to  maintain professionalism, adding that  they took that line of action to protect the practice of the profession and the public from being duped.

    Also, a former secretary of the institution, Dotun Bamigbola, who corroborated Olurogba’s position, said the institution has imputed standardisation  in its practice by training the middle cadre professionals under the umbrella body of Association of Estate Agents of Nigeria in title documentation, agency transaction, amongst others.

    The Publicity Secretary, Mr. Moses Emele, in his contribution, noted that mass housing remains the only viable way to address the challenges of inadequate shelter. He encouraged both the Federal and state governments to provide an enabling environment for the private sector by facilitating easier access to land.

  • NIESV assures of high ethical standards

    The Nigerian Institution of Estate Surveyors and Valuers (NIESV) has pledged to uphold high ethical and professional standards.

    The 22nd President of the Institution, Dr. Bolarinde Patunola-Ajayi, stated this at the inauguration of the body’s executive council in Lagos, last week.

    Patunola-Ajayi, who spoke on behalf of other executive members, said the body would, more than before, ensure conformity with ethical standards and best practices of the profession.

    “Good image is very essential in the professional ratings of any profession. The perception of the public and the clients about our services is one of the strong yardsticks to determine the level of patronage to our services. Profession negligence is a breach of duty or care between the professionals and their client. Our advocacy to members on professionalism will be intensive to ensure that we maintain the enviable standards required by the users of our services,” he said.

    He advised prospective property owners to always seek the guidance and services of estate surveyors and valuers to broker property acquisition on their behalf.

    The President, Association of Professional Bodies of Nigeria (APBN), Mr. Gabriel Fasoto, in his keynote address, condemned the practise of the profession by non-professionals, noting that such act dents the image of the body with disastrous results. He urged the body to collaborate with other bodies on effective structures to checkmate and penalise erring individuals.

    The chairman of the investiture and 11th president of NIESV, Mr. Joe Idudu, advised the institution to seek government’s protection against the invasion of the body.

  • Bill seeks 10-year jail term for land grabbers

    •Bureau makes N3.148b in four months

    BILL seeking 10 years imprisonment for land grabbers, popularly known as Omo Onile, is pending before the Lagos State House of Assembly, Permanent Secretary, Lands Bureau, Mr. Bode Agoro, has said.

    The bill is expected to be passed into law in the third quarter of the year.

    It is titled “Bill for a law to prohibit forcible entry and occupation of landed properties, violent and fraudulent conducts in relation to landed properties in Lagos State and for connected purposes.”

    Agoro, who was giving account of his one-year stewardship under Governor Akinwunmi Ambode, said the attacks on government allottees by Omo Onile were unbecoming, adding that the government would no longer fold its arms and watch.

    “The incessant complaints and constant agony being felt by people of the state necessitated the Lagos State House of Assembly to embark on the bill. This law will definitely go a long way in stopping this terrible menace in our society. Let the Omo Onile be warned because we are determined to win the battle against them. We are coming for them and we are facing them squarely,” Agoro said.

    He regretted that Omo Onile have constituted themselves into nuisance, disturbing public peace at will.

    Agoro said between January and last month, the bureau realised N3.148 billion from land sales.

    Between last May and March, it generated over N8 billion; Governor Ambode signed 5,625 Certificate of Occupancy (C of O) within the same period. Agoro attributed the feat to the government’s strong will, immense capacity for hard work and desire to accelerate the process of issuing land title.

    “The need for the acceleration of the titling process is that a high number of property owners in the state have realised the importance of having titles for their lands, especially the business community, as registered land titles are major documents needed as collateral for obtaining facilities from financial institutions,” he noted, adding that the Directorate of Land Services, a department in the Bureau, has also introduced a new form, known as IC, which incorporates the passport photograph of the purchaser to be affixed on the deeds of agreement.

  • ‘Surveyors not responsible for high rent’

    Surveyors and valuers are not responsible for the huge housing deficit and high rent, Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos Branch Chairman, Mr. Offiong Ukpong, has said.

    He was reacting to the claim of Works, Power and Housing Minister Mr. Babatunde Fashola that surveyors and valuers should be blamed for those problems.

    Ukpong, who led a delegation to visit Oba Rilwan Akiolu of Lagos, said surveyors and valuers were often accused of being responsible for several anti-tenancy activities, high cost of renting properties; tenants’ inability to pay rent; fixing of high rent and charging high fees.

    According to him, NIESV, which ought to have been a development partner to the government, is not treated as such by the authorities, considering that when major decisions are taken, the body, according to him, is not represented.

    “The cost of land, its preparation, taxes and levies paid are not under our control nor advice. We do not determine accommodation density nor are we involved in the design of the building, yet we shall be managing it when all others exit. We are not involved at the construction stages, neither is our advice sought on areas of cost savings or elimination of dead spaces or unnecessary facilities. Our opinion is not sought on whether the housing provision is for social housing or investment considerations,” Ukpong said.

    He said often estate valuers were called at the completion of a project to do the marketing and management, sometimes, at a predetermined rent. Besides, property owners, most times, shun the advice of valuers, who are easily relieved of the job if they advise anything to the contrary.

    He said in other countries, real estate development attracted 2 to 4 per cent interest rate per annum at a tenor of between 15 to 25 years.

    “Is government giving mortgage? For what duration and at what rate? If rent is high what of Land Use Charge? What is the return to land as a factor of production, and should it not be competitive? Instead of any blame game, we should be thinking of synergies and partnerships rather than the neglect our profession has suffered these past years,” he said.

    Meanwhile, the NIESV delegation also sought the monarch’s influence in swinging patronage for the body. Specifically, they canvassed the partnership of all stakeholders in the drive for urban renewal of Lagos Island and other areas.

    “It is a fact that Lagos Island is the cradle of civilisation in Nigeria. Lagos was and is still the London of most other states in Nigeria. But if you look carefully at Lagos, perhaps with the eye of an estate surveyor and valuer, you will see that those buildings that were outstanding and impressive then have lost their steam and prestige,” he observed.

    Ukpong said there were many areas due for redevelopment, including most parts of Lagos Island, Shitta, Iddo, amongst others. He expressed concern that despite that Lagos is a major town in the world, it is, however, a shame that 30 metres from its major highways, rural characteristics were still prevalent. He admonished that the multiple interests subsisting in tiny units of development or buildings can be identified, harmonised or aggregated and developed into multi-storey buildings with modern conveniences and facilities without losing the original ownership rights or interest.

    On building collapse, the NIESV team noted that the multiple-storey buildings dotting the skyline of Marina and Broad Street had been in existence for many years, while several new developments across the state had collapsed. Most of the old projects were managed by estate surveyors and valuers, and none have collapsed.

    “You will recall the works of Knight Frank and Rutley as he then was called, Fox and Co. and many other indigenous firms that operated then. They were involved in project conception, project management and property management, and we had more organised cities and society. But, suddenly, every other professionals in the built environment thought that what the estate surveyors and valuers know and could do can be done by them and we became known, called and addressed as estate agents and today, the buildings are collapsing, the cities are decaying and the environment is blighted,” he said.

    Ukpong urged the state government to adopt the old method of construction and management, which stipulated that no building above four floors should be approved without the inclusion of a consultant estate surveyor and valuer, who knows what to do and the enormous responsibility of his profession in every project.

    Besides, Ukpong said, the government should consider the establishment of the office of the Valuer-General of the Federation, and by extension, in all the states; appoint an estate surveyor and valuer as a minister and commissioner in Lagos State, and partner the professionals on urban renewal of Lagos Island and other areas of the state requiring regeneration.

    He charged the government to engage members more in policy formulation and positions of responsibility as their competencies were daily getting destroyed and eroded, with the society and the people being the worst for it.

    Said he: “In the Federal Executive Council today, there is no estate surveyor and valuer there. But the estate surveyor and valuer is also a land economist. Who advises the government on land matters?”

  • Pipeline vandalism disrupts water supply

    The water shortage in Lagos State has been blamed on gas pipelines attacks in the Niger Delta.

    The Environment Commissioner, Dr. Babatunde Adejare, in a statement, said the attacks affected water production at various facilities across the state.

    The development, he said, led to shortage in gas supply to the Akute Independent Power Plant (IPP), which processes potable water.

    Adejare said the government was working  to connect to the national grid to ensure an alternative power supply for its plants soon.

    He noted that the main concern of the government is to increase water supply to the ever-increasing population of Lagos. For instance, in 2010, the daily water demand by Lagos residents was 500 million gallons, while supply was 210 million gallons. There is, therefore, a shortfall of 290 million gallons daily.

    “It has been projected that by 2020, the daily water consumption demand will be 733 million gallons as the supply per day will be 745 gallons and thereby having excess of 12 million gallons per day. It is expected that planned expansion of Iju, Adiyan 1-3 Isasi, Ikosi, Odomola 1 and 2 will ameliorate the situation,” he said.

    Adejare said to optimise the distribution of water in some areas, the water corporation was introducing a distribution kiosk system by creating centralised points where water could be bought at a substantially cheaper price by vendors.

    This, he said, is an innovation in the country and will complement the five-kilometre reticulation and the existing network.

    Urging Lagosians to be patient, Adejare urged people to report anyone found tampering with or vandalising water corporation power plants to the appropriate quarters.

    He further said indiscriminate and unhealthy laying of water pipes across  drains, patronage of unlicensed and unapproved water vendors were unacceptable. He described such practices as avenues for spreading water-borne diseases, such as cholera, diarrhea and others.

  • Ambode inuagurates AHCN complex

    The Association of Housing Corporations of Nigeria (AHCN) will today inuagurate its office complex. It was designed and built under a build, operate and transfer (BOT) arrangement between the association and Centre Base Consult Limited. The building is on CIPM Road, Alausa Business District in Ikeja, Lagos State.

    While the land, which covered 2,239m2, had been purchased by the association since 1986, it was not until November 2014 that construction started on it. The developer cum Managing Director of the partnering firm, Centre Base Consult Limited, Mr. Sesan Obe, noted that it was not how long it took to construct it, but how well it was built. The office complex has been named AHCN Tower.

    Towering at five floors, the complex has over 47 office suites of a minimum area of 19.5m2 and is fitted with a lift system. Other features in the facility include a 70-car capacity parking lot, air conditioned relief facilities, a 300KVA generator and 24-hour security service with CCTV.

    The project, Obe said, was funded by a consortium of Nigerian banks, including Sterling Bank, FCMB and Keystone Bank. Obe rued the high interest rates charged by commercial banks on credit facilities, and the long period of securing necessary building approvals.

    He, therefore, urged the government to set up infrastructure banks for the purpose of financing such projects in future. This, he explained, has become necessary considering that most times, commercial banks do not fully understand the concept of long term financing in construction.

    The office complex is open for long term lease at the rate of N35,000 to N45,000 naira per metre square – a rate, which Obe noted, was quite affordable considering the fact that the office complex is located in a highbrow business district.

    Meanwhile, Minister for Works, Housing and Power, Babatunde Fashola will be the Special Guest while Lagos State Governor, AkinwunmiAmbode, is expected as the Guest of Honour at today’s inuaguration.

    The event will be rounded up with the 95th Council meeting of the association, which holds at the Lagos Airport Hotel later in the day.

  • Bill seeks 10-year jail term for land grabbers

    •Bureau makes N3.148b in four months

    Bill seeking 10 years imprisonment for land grabbers popularly known as Omo Onile is pending before Lagos State House of Assembly, Permanent Secretary, Lands Bureau Mr. Bode Agoro has said.

    The bill is expected to be passed into law in the third quarter of the year.

    It is titled “Bill for a law to prohibit forcible entry and occupation of landed properties, violent and fraudulent conducts in relation to landed properties in Lagos State and for connected purposes.”

    Agoro, who was giving account of his one-year stewardship under Governor Akinwunmi Ambode, said the attacks on government allottees by Omo Onile were unbecoming, adding that the government would no longer fold its arms and watch.

    “The incessant complaints and constant agony being felt by people of the state necessitated the Lagos State House of Assembly to embark on the bill. This law will definitely go a long way in stopping this terrible menace in our society. Let the Omo Onile be warned because we are determined to win the battle against them. We are coming for them and we are facing them squarely,” Agoro said.

    He regretted that Omo Onile have constituted themselves into nuisance, disturbing public peace at will.

    Agoro said between January and last month, the bureau realised N3.148 billion from land sales.

    Between last May and March, it generated over N8 billion; Governor Ambode signed 5,625 Certificate of Occupancy (C of O) within the same period. Agoro attributed the feat to the government’s strong will, immense capacity for hard work and desire to accelerate the process of issuing land title.

    “The need for the acceleration of the titling process is that a high number of property owners in the state have realised the importance of having titles for their lands, especially the business community, as registered land titles are major documents needed as collateral for obtaining facilities from financial institutions,” he noted, adding that the Directorate of Land Services, a department in the Bureau, has also introduced a new form, known as IC, which incorporates the passport photograph of the purchaser to be affixed on the deeds of agreement.

  • ‘Surveyors not responsible for high rent’

    Surveyors and valuers are not responsible for the huge housing deficit and high rent, Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos Branch Chairman Mr. Offiong Ukpong has said.

    He was reacting to the claim of Works, Power and Housing Minister Mr. Babatunde Fashola’s that surveyors and valuers should be blamed for those problems.

    Ukpong, who led a delegation to visit Oba of Lagos, Oba Rilwan Akiolu of Lagos, said surveyors and valuers were often accused of being responsible for several anti-tenancy activities, high cost of renting properties; tenants’ inability to pay rent; fixing of high rent and charging high fees.

    According to him, NIESV, which ought to have been a development partner to the government, is not treated as such by relevant authorities, considering that when major decisions are taken, the body, according to him, is not represented.

    “The cost of land, its preparation, taxes and levies paid are not under our control nor advice. We do not determine accommodation density nor are we involved in the design of the building, yet we shall be managing it when all others exit. We are not involved at the construction stages, neither is our advice sought on areas of cost savings or elimination of dead spaces or unnecessary facilities. Our opinion is not sought on whether the housing provision is for social housing or investment considerations,” Ukpong said.

    He said often estate valuers were called at the completion of a project to do the marketing and management, sometimes, at a predetermined rent. Besides, property owners, most times, shun the advice of valuers, who are easily relieved of the job if they advise anything to the contrary.

    He said in other countries, real estate development attracted 2 to 4 per cent interest rate per annum at a tenor of between 15 to 25 years.

    “Is government giving mortgage? For what duration and at what rate? If rent is high what of Land Use Charge? What is the return to land as a factor of production, and should it not be competitive? Instead of any blame game, we should be thinking of synergies and partnerships rather than the neglect our profession has suffered these past years,” he said.

    Meanwhile, the NIESV delegation also sought the monarch’s influence in swinging patronage for the body. Specifically, they canvassed the partnership of all stakeholders in the drive for urban renewal of Lagos Island and other areas.

    “It is a fact that Lagos Island is the cradle of civilisation in Nigeria. Lagos was and is still the London of most other states in Nigeria. But if you look carefully at Lagos, perhaps with the eye of an estate surveyor and valuer, you will see that those buildings that were outstanding and impressive then have lost their steam and prestige,” he observed.

    Ukpong said there were many areas due for redevelopment, including most parts of Lagos Island, Shitta, Iddo, amongst others. He expressed concern that despite that Lagos is a major town in the world, it is, however, a shame that 30 metres from its major highways, rural characteristics were still prevalent. He admonished that the multiple interests subsisting in tiny units of development or buildings can be identified, harmonised or aggregated and developed into multi-storey buildings with modern conveniences and facilities without losing the original ownership rights or interest.

    On building collapse, the NIESV team noted that the multiple-storey buildings dotting the skyline of Marina and Broad Street had been in existence for many years, while several new developments across the state had collapsed. Most of the old projects were managed by estate surveyors and valuers, and none have collapsed.

    “You will recall the works of Knight Frank and Rutley as he then was called, Fox and Co. and many other indigenous firms that operated then. They were involved in project conception, project management and property management, and we had more organised cities and society. But, suddenly, every other professionals in the built environment thought that what the estate surveyors and valuers know and could do can be done by them and we became known, called and addressed as estate agents and today, the buildings are collapsing, the cities are decaying and the environment is blighted,” he said.

    Ukpong urged the state government to adopt the old method of construction and management, which stipulated that no building above four floors should be approved without the inclusion of a consultant estate surveyor and valuer, who knows what to do and the enormous responsibility of his profession in every project.

    Besides, Ukpong said, the government should consider the establishment of the office of the Valuer-General of the Federation, and by extension, in all the states; appoint an estate surveyor and valuer as a minister and commissioner in Lagos State, and partner the professionals on urban renewal of Lagos Island and other areas of the state requiring regeneration.

    He charged the government to engage members more in policy formulation and positions of responsibility as their competencies were daily getting destroyed and eroded, with the society and the people being the worst for it.

    Said he: “In the Federal Executive Council today, there is no estate surveyor and valuer there. But the estate surveyor and valuer is also a land economist. Who advises the government on land matters?”

  • Vine Realtors lures property investors with enticing offers

    Vine Realtors lures property investors with enticing offers

    Investment opportunities in real estates abound in Nigeria and smart investors are now jostling to outsmart each other in the burgeoning industry.

    Real estate business in Nigeria has taken a positive trend and is now a major money spinner in a country known for its huge dependence on fossil fuel (oil and gas) as source of revenue.

    Nigeria has one of the most conducive business environments in Africa.

    The desire of upwardly mobile people is relocate to from a rural setting to the urban environment where life will be more comfortable.

    There are many business opportunities in Nigeria but real estate investment outwits them all.

    Advantages of real estate include quick return on investment and quality control over investment.

    Every investor wants his cash back as quick as possible and for that matter, real estate investment in Nigeria gives the quickest money guarantee.

    After investing your money, the first income you may get from making an investment in a property is the rental income.  Some investors are lucky and get good locality like city centers and areas close to universities which can he rented as hostels. Here the rental income will be quite substantial and the profits will come quicker.

    With real estate, you are assured of good control over your cash flow. Investment in properties fetches you rental incomes month after month.

    Investment analysts have argued that rental incomes gives greater dividend than investment in stocks. With stocks, if you are extremely lucky, a sudden surge in the value of your stocks may get you good returns if you sell the stocks at the most opportune time.

    In its quest to encourage individuals to try their luck in the burgeoning industry, Vine Realtors, a real estate website, has launched promos for some properties in its stable.

    Those that bought properties in Lekki Phase 1 for N1m or N500, 000 saw what others didn’t see and they are reaping the fruits today.

    The promo ends this month.

    Stop dilly-dallying and make a move NOW.

    The estates for which promos are ongoing include:

    • Star Gardens, opposite Fara Park

    The property is just six minutes off the Lekki- Epe Expressway

    It goes for N4.5m.

    • Cherry Wood Courts, Osoroko Town

    Cherry Wood Courts is just few minutes drive from Lekki Free Trade Zone.

    Its current price is N1.5m.

    • Rockville Courts, Osoroko Town

    Rockville like Cherry Wood Courts is just few minutes drive from Lekki FTZ and goes for N2.5m.

    * Brooksville Courts, Ibeju Agbe Town, Ibeju Lekki.  The promo price is N1.5m.

    * VIP Gardens Festac, Abule Ado, Ado Soba.  It goes for N3m.

    * Lagoon Courts, Ibeju Agbe Town, Ibeju Lekki. Price is N1.2m.

    Take advantage of these promos and be part of the new Lagos.

    For detailed information on this contact:

    Phone: 08052864662, 08166250519

    Or,

    Email: info@vinerealtors.com.ng

    Website: vinerealtors.com.ng

  • Fed Govt urged to protect property

    The Federal Government has been urged to protect  its properties nationwide. Besides, it should encourage harmonious relationship with states where the properties are to protect concessionaire’s interests.

    Mr. Olu Adenodi,  Chief Executive Officer of BHS International, the concessionaire to the Tafawa Balewa Square (TBS), who made this call in Lagos, urged the government to secure a “no objection approval” for the concessioned properties to  check the hurdles on leaseholders’ and investors path.

    He noted that the government’s failure to fulfil its obligation to asset ownership will put the concessionaire in a precarious position and hinder its financial obligation to lenders and investors.

    Adenodi warned that if such properties are not adequately protected or checked, host state governors where Federal Government properties are situated or located may be tempted to show interest, with a view to converting or taking over such facilities from the Federal Government.

    “It could also expose the Federal Government to damages in several billions of naira as seen in the old Federal Secretariat in Ikoyi, Lagos, transaction, where an Arbitration Panel has ruled in favour of a concessionaire ordering the Federal Government to pay a huge sum as damages for breach of contract,” he warned.