Category: Building & Properties

By Florence Anya

Minister of Works & Housing Babatunde Fashola said the Apapa- Oshodi Expressway will increase the economic fortunes of the country as Apapa is one of the economic power house of the nation.

He spoke on the sidelines of his recent inspection of the expressway with the Federal Controller of Works in Lagos, Adedamola Kuti and Alhaji Aliko Dangote, whose firm is co-financing the construction of the road.

Kuti, who said the expressway is a key factor to the country’s development, added the government is committed to completing in record time.

Fashola said though the public  may be seeing just a road, the government is  seeing an added economic value to the country.  He said this was a strategic economic intervention,  noting that the materials used are all local in origin, including the cement. He promised intervention in other roads across the country.

A truck driver Sule Tayo, who spoke to The Nation, said  the congestion on Apapa-Oshodi road is alarming. “There are over 20 bonded terminals but only Apapa port that is working and this is the result of the road congestion,’’ he stated .

Another driver Henry Okonkwo also said he had been driving on the Apapa-Oshodi road for the last 20 years and pleaded with the government to provide refuse dump and  toilets at strategic points on the expressway, adding that it is the only way it can be preserved.

He regretted that a port that should be a unique place is looking tattered and filled with  human waste. He said: “Let them give us a refuse dump and a toilet facility so that if anyone is caught defecating openly he can be  rightly sanctioned.’’

By Grace Obike Abuja

Apart from being the seat of the government, Abuja is known for its infrastructure and properties. Residents or visitors can attest to the city’s great architectural designs, which, unfortunately, include hundreds of abandoned buildings which sometimes  estates, built to taste but left to wither away.

Experts said the sector is one of the fastest growing in the country, which has in recent years attracted young people in their 30s and early 40s looking to own tangible investments that appreciates.

They said in the 80s, 90s and early 2000s, Nigeria had few people in the  middle class because most of the corporations were owned by the government and business was done in an old fashioned way. But lately, with privatisation and investors coming in telecoms, oil and gas, Information Communication Technology (ICT), agriculture, insurance, among others, Nigerians’ lifestyle changed and the middle class grew.

The middle class are the ones running the economy and they are the ones buying products and services. In doing so, more jobs are created for the middle class which is real demand.

Founder and Chief Executive Officer of Cosgrove Investment Limited, Umar Abdullahi, who has been in the sector for over 10 years before establishing his company that owns over 1000 houses in Abuja, said the real estate market in Abuja has been doing very well, after the recession.

He described the best years in the real estate market to be around the end of 2011 to 2014, and 2019 after the general elections.

He described the market in four ways with the fourth being the commercial real estate in hotels, hospitals, schools, office complex etc , but the first is the residential, which he said can be speculative, these being in the aspect of big properties that cost billions of naira.

He said: “They were mostly built when oil price was high, then their was money and people had misplaced priorities, instead of them concentrating on real demand of families looking for maybe three, four bedrooms or less, they sink in billions unnneccearily in the market and they were not real developers, probably just looking for a way of converting their money into something else because they probably did not know what to do with the money in their possession.”

The market resulted in the huge number of empty houses because there is no real demand for the kind of properties. He explained that as  the middle class in Nigeria started emerging, especially from the 2009s, a lot of the sectors opened up and the demand for housing rose. This led to category two, which is good for the sector and category number three is affordable housing.

Abdullahi said the market has grown to the outskirt of the city centre, which was indirectly encouraged by the government. He said this was why the Federal Capital Territory Authority (FCTA) is trying to provide decent housing for low-income earners, a reason former President Olusegun Obasanjo opened up Abuja to mass housing in 2006 to encourage developers by giving them land with infrastructure.

On abandoned buildings in Abuja, he urged the government to come up with a framework to help the matter.

The CEO also explained that as one that has travelled around the world, the slums in Abuja are not as bad as they are in some other countries, including more advanced countries.

He added that El-Rufai did a good job by formalising how Abuja slums should be in terms of logistics, transportation and residency. If it was not nipped in the bud then, it would have been out of control by now, which is why the security situation in Abuja is relatively fair and now the value of land on the increase daily.

By Okwy Iroegbu-Chikezie

THOUGH last year was a dificult year for the property market, there are hopes that the industry may pick up this year.

However, despite this optimism some experts believe that this may only be, if the government works to discourage slush funds in the sector.

Early last year, there were predictions that the real estate market would see more supply across the various subsectors and record varous demands as a result of paucity of funds.

It was also said landlords would be more open to a zero increase and a slight reduction in rent renewals as tenants were not willing to pay more, citing the economic times, job losses  and poor infrastructure service upgrade in homes.

Critics also believe the law is favourably disposed to tenants against landlords, but this will soon change as the Lagos State Government, through the Special Adviser to the State Governor on Housing (MOH), Mrs. Toke Benson-Awoyinka said the state government is willing to partner the private sector to develop the housing sector in creating awareness to residents contrary to the erroneous belief that the government is hostile  to private sector.

She said it is the desire of the administration to ensure that every resident prospers and contribute to the state’s growth.

She stressed that the 21st Century Smart City of Lagos requires that real estate stakeholders and transactions be captured electronically as real estate is to Lagos as oil is to Nigeria.

She said: “There is the need to provide, develop and continuously capture and update a Unified Central Database of Real Estate activities within the state while making it accessible for objectives of planning and policy decisions.

‘’Our vision is to provide an enabling environment and transparent Real Estate sector conforming with international best practices while safeguarding the interests of all stake holders.Our mission, however, is the creation of an innovative and sustainable environment to promote Lagos as a Real Estate Investment destination in Africa and the World.”

She  listed some reasons that made the government to come up with Lagos State Real Estate Transction  Department (LASTRED) to include  frustrations by the public and the  losses they encountered.  She said her office had battled many cases of transaction failures.

She said in the last  six months, they have dealt with large scale fraud.

A former Chairman of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) Mr. Orimalade Rogba, said other sectors  suffered  difficulties last year apart from agriculture  where  many people ventured.

According to him, real estate has been  slow, and that the rate of demand for housing units had been abysmally low, especially in the residential section.

He said: “For the low-income segment, there were more developers who were into higher end, focused on the lower end or affordable houses; more people pushed towards that bracket with a lot of deals such as structured payment.

“The high end went down because demand wasn’t as much as before; one of the reasons being the uncertainty of the economy which made investors to be conservative in releasing their funds. The summary is that a lot of developers and players that were traditionally focused on high level development now play in the affordable class of N10million to N15million or less.”

He stated that due to difficulties in the property market, a lot of developers created housing units targeting the youth.

“The target now became studio apartments.The focus on bigger houses reduced,” he added.

On the commercial and retail side, he said there was a bit of demand driven by incentives from landlords.

He  however stated that development of new retail and commercial building went down significantly, adding that “overall, the property market had not been encouraging.”

The President, Real Estate Developers Association, Mr Ugo Chime, said a lot of factors slowed the real estate activities.

He stated that during election period in the first quarter of last year, the demand for real estate was low due to  uncertainties.

An estate surveyor and valuer Otunba Sola Enitan, said the growth in real estate in certain cases was fuelled by slush funds.  He said for any country to grow economically, the fight against corruption and money laundering must be thorough, adding that money laundering affects a nation’s economy.

He maintained that corruption is endemic in the sector,  noting that over 80 per cent of  proceeds of corruption founnd their way into real estate, properties or the building of assets.  He said it is evident in high brow areas of Lagos and Abuja where massive buildings are unoccupied for years.

He said: “A high share of the population and businesses harbour  un-official income. There is also the existence of a black market in the foreign exchange market, it  is as if it has been legalised.  Corruption among state executives, law enforcement and judicial officers is rampant. Poor control of financial instruments such as shares and bonds, insufficient requirements for transparency of financial transactions and ownership of assets encourage money laundering.”

Enitan regretted that corrupt people   brought their ill-gotten funds to the sector and pleaded with anti-graft agencies to check this.

He observed that it was difficult to estimate the growth of  the sector as some of the prices of buildings were not real as a result of the source of the funding.

Frank Ikpefan, Abuja

In order to reduce the rate of building collapse in the country, Nigerian Institute of Building (NIOB) has vowed to produce competent builders and reduce the number of quacks in the building industry.

It noted that it would be counterproductive for the growth of the construction industry if competent builders were not engaged.

Its President, Kunle Awobodu, said this during his investiture as the 20th President of the institute in Abuja at the weekend.

Awobodu noted that the goal of the institute is to secure standard sites for building students on industrial training.

He said building education had spread across the country, as Nigeria currently has 27 universities and 60 polytechnics that offer training in building.

Awobodu said: “If such graduates are scheduled in a process to become resident builders just like resident doctors, and in a nexus with seasoned builders, there would be less poor construction work on sites.

“This creates a pool of young building practitioners from where developers can recruit to fortify the quality and safety of buildings being sold to the public. The pledge of NIOB to Nigerians is the development of competent builders.

“When the number of buildings being constructed in Nigeria is juxtaposed with the number of trained builders, there seems to be a missing link.

According to him, quacks were occupying the space meant for competent builders.

“It is only in a nation that lacks a veritable building code and effective mechanism for the implementation of building regulations that such an aberration could exist.

“The major problem confronting the nation’s built environment is the attitude of not understanding and appreciating the importance of appropriate building production management,” he said.

He stated that building construction was a delicate work that required thorough supervision and stressed that artisans must know their limitations.

“Building construction is a huge investment that artisans should not experiment or fiddle with for selfish reasons,” Awobodu added.

READ ALSO: How Procurement Act will impact building sector

The Minister of Works and Housing, Babatunde Fashola, who’s message to the NIOB was read at the event, charged the institute to blaze new trails in skills development and in the promotion of innovative building techniques.

He said: “Your current regulatory instruments must be fine-tuned to arrest quackery, punish professional recklessness and reward excellence.

“A professional builder has the duty to identify his exclusive role in the built industry and respect the roles of others. More importantly, you have a bigger task of recognising common roles and express commitment to them.”

The minister said the Federal Government would continue to support the building industry by creating jobs for professionals and artisans in the sector.

On his part, the Minister of Interior, Rauf Aregbesola, challenged Nigerian builders to come up with building construction innovation that would not only stand the test of time but would also be suitable for tropical weather conditions.

He recalled how pre-colonial mud buildings in Nigeria adequately served Nigerians of that era and encouraged builders to be professional in their activities.

Kelvin Osa Okunbor

A firm, LandWey has launched its first ever Pro – Tech laboratory for players and stakeholders in the real estate sector.

The launch of the laboratory came on the heels of forward thinking innovators and disrupters constantly seeking to redefine the narrative in the sector estate industry in Nigeria.

The Prop-Tech Lab, according to its founder and Chief f Executive Officer, Olawale Ayilara said the laboratory will provide the most vibrant, innovative tools, resources, think-tank and technical know-how that will prove to be indispensable for every real estate player in the 21st century.

READ ALSO: Firm revs real estate with technology

Speaking on the project, he said: “Technology and all of its accompanying mechanisms is here to stay. We cannot be seen to be working against its ideals and entrance; neither can we afford to be caught in the quagmire of obsoleteness. We move along with the changing times; hence the birth of Prop-Tech Lab Nigeria, we realize that tech is showing its hands in virtually every sector, including real estate. There has never been a better time to jump on tech-driven methodologies and operations, especially now as tech begins to gain ground in our sector, we have to move along its fine lines of development.

“Prop-tech Lab will prove to be the opium of 21st century real estate business, in scope, in processes, as storehouse of information, knowhow, industry innovation and market stats, study, projections, forecasts, basically everything a real estate player needs to do business smartly and tech-like in the times in which we live.”

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Okwy Iroegbu-Chikezie

Stakeholders in the built environment, including captains of industries, were left in awe, last Thursday. It was the unveiling of an addition to the luxury homes in Bourdillion, Ikoyi, Lagos.

The gathering witnessed the berthing of Sisi Paris, a high end, 10-storey luxury apartment.

Sisi Paris, one of its latest projects from the stable of Cobblestone Properties & Estates Limited, a property development and marketing company and a major player in the real estate sector, combines a lifestyle of luxury and class. An apartment in the building is opulently furnished, letting at a price of N30million per year.

The building, even in the affluent Bourdillon area,  of Lagos, remains a beauty to behold.  It is draped in luxuriant colours of yellow, green, red and white and sublime finishing to sooth the taste of the young at heart. A facility tour of the building revealed that all the rooms come ensuite, including being fitted with television and cinema room,  fitted kitchen, furnished laundry room, domestic staff quarters on every flat; round-the-clock concierge service, including a 24-hour power and CCTV for maximum security.

According to the Executive Director of Cobblestone Properties, Mrs. Bella Disu, “when we decided to restructure the building that was here, we focused on delivering the ideal luxury living experience. To meet the needs of the average family, each three- and four-bedroom apartment was redesigned to have two living rooms, one of which can be re-purposed as a study, cinema, or playroom for children. Each apartment also has a fully fitted laundry and a pantry’’.

Disu said true luxury extends beyond fittings and finishing, as it permeates every detail that contributes to superb daily living. This, she further explained, is why Sisi Paris goes a step further by delivering first-rate service. For instance, the round-the-clock concierge, a unique service attached to the apartments,  will provide scheduling and reservation services while the on-site minimart is a one-stop-shop for daily needs.

“At Cobblestone Properties, we have developed and managed many commercial and residential properties across Nigeria, but Sisi Paris is a milestone for us. It is our first, major luxury residential development. Her name, her design, and her colour arrest attention on the Lagos skyline, however, her real charm lies in being people-centred, “ she enthused.

Disu also revealed that the concept, design and execution of the project were inspired by the Chairman of the Mike Adenuga Group, Dr. Mike Adenuga Jr., who she described as a “pillar of support for the project”.

The event, which was complemented by a jazz band, serenading the august gathering by the pool side of the luxury apartment building, was attended by, premium stakeholders in the property sector, celebrities and friends of the Adenuga family.

The built environment has been fraught with challenges of collapse, quackery, substandard materials, abandonment and poor workmanship. Operators say poor policing of the sector and near lack of adherence to laid-down procedures are drawbacks to having a virile building sector. The Lagos State Government, however, says it is considering the introduction of Standard Operating Procedure (SOP) for Ministries, Departments and Agencies (MDAs), OKWY IROEGBU-CHIKEZIE reports

Experts and stakeholders in the built environment are worried. Their concerns stem from the lingering quackery of artisans in the sector. And with building collapse that has plaguing the state, nay, the country, such worries can be understood.  Building collapse and other problems of the sector can be said to be seated on a tripod – poor quality jobs, poor quality building materials and lack of competence of most masons and artisans.

Besides, the non-adherence to the Public Procurement Act is believed to be a major albatross for the industry. The Act emphasises competence, appropriate pricing, structured funding, use of standard and quality materials.

Others are designed to entrench quality, efficiency and safety in line with global best practices.

At a recent summit put together by the Nigerian Institute of Building (NIOB), tagged: “Appropriate procurement methods: Ensuring effective building production,” the body said rising inflation index on resources in the construction industry has led to a reduction in business activities in the sector with inflation impacting negatively on individual’s and corporate body’s purchasing power; and by extension reducing appetite for new projects.

Vice Chairman, NIOB Lagos Chapter, Sunday Wusu, said sound procurement would successfully help in completion of projects on schedule, and at the right cost to stakeholders without recourse to arbitration or litigation.

He called on professionals to see appropriate procurement methods in its true light and recognise the distinction between different procurement methods for different project; that would help in arriving at the best options for each project.

Wusu said: “Appropriate procurement methods when holistically analysed at inception and put to use would undoubtedly help in reducing, if not eliminating cost overrun that culminate from extension of time due to unforeseen mistakes from the various stakeholders on such projects.”

He further argued that appropriate procurement methods when holistically analysed at inception undoubtedly help in reducing, if not eliminating, cost overrun that emanates from extension of time due to unforeseen mistakes.

Wusu further stated  that all over the world it is generally believed that the success of a construction project is largely dependent upon the type of procurement method applied. He listed the factors influencing the choice of a procurement model to include project start and finishing time; need to foster control; project size; risk management and price uncertainty due to time consideration and technical complexity.

Others are quality control, administrative complexity, and familiarity of the procurement method.

However, he said no one method has the solutions to procurement challenges, urging consultants and professionals to continually update their knowledge on the suitability of one method over another for projects.

Wusu said attaining building production required design and construction document, including client’s goal for the project and government requirement.

On cost management at site, he said the overall objective is to ensure that scarce resources are utilised to the optimum benefits.

His words: “The design and execution of a project should produce maximum value for money this is because the cost of capital is high and it is only operated for short term.”

Wusu charged his members on the need for fair play. He said: “In contract award, there should be fair play. Price though a significant criteria should not be the sole determinant or even the most important criteria in sensitive projects or in award of contract.

Other factors such as technical, financial and administrative capabilities are major items that should be evaluated at the prequalification stage. It should be given to the qualified bidder whose bid substantially conforms to the requirement set forth on the solicitation documents.

Underscoring the need for integrity in the process, he said: “Due process” policy in contract awards was introduced to ensure the selection of the most appropriate contractor to deliver construction projects as specified so that the best value for money is ensured.

But  despite this, project delivery has been characterised by inefficiencies that lead to poor quality, time and cost overrun.

Chairman, NIOB Lagos, Adelaja Adekanmbi, spoke on the need to check corruption and maintain integrity in procurement and construction process.

He said honesty in procurement processes, which should reflect in cost and successful completion of projects on schedule, and at the right cost to all, without recourse to arbitration or litigation, was lacking in the country.

He urged builders to align themselves with procurement methods that would effectively manage time- tasted and value-building production processes according to global ethics.

He stressed that zero per cent accident could be achieved at construction sites if corruption was eliminated. Adekanmbi advised professional to avoid being used by the government or her agencies to perfect corrupt practices. The NIOB chief canvassed time management and sticking to programme schedule in the building process stating that if all these are adhered to the sector will be robust and grow the economy.