In an interview with Homes and Property Guide, CEO First Bunmi Solanke Consultancy, Rotimi Adesoye has identified some of the major challenges facing Nigeria’s real estate sector. Mr. Adesoye noted that although Nigeria’s real estate sector has great potential, challenges which include shortage of skilled labor, increased cost of building materials, and proper funding are some of the key challenges facing the industry.
The expert explained that if not addressed, these factors will continue to militate against the growth of the real estate sector in Nigeria.
Shortage of skilled labor
Housing developers in Nigeria have always bemoaned the shortage of skilled labor in the sector. As the sector fast approaches a tremendous growth than it had ever experienced, the demand for skilled labor and qualified technicians has become even more intense.
Increased cost of building materials
Increased cost of building materials currently plagues Nigeria’s built sector. In September, the cost of building materials increased by 300%, thereby worsening housing deficit. According to reports from a market research conducted by Guardian,
The price of cement had reached an all-time high of N5, 000 per 50kg bag before stabilising. Presently, in some locations in the Southwest, the price ranges between N3, 800 and N4, 000 per bag. In Southeast, the same bag goes for N3, 200 while in the North a 50kg bag starts from N3, 900, depending on locations.
An increase in prices of reinforcement has also sent shivers down the spine of private developers, leading to low patronage and confusion among contractors, whose earlier scheduled quotations of materials are now in dissonance with current market realities.
Lack of funding
One of the greatest challenges is funding projects. Lack of access to funds to execute projects in large scale and on time has also been a problem for developers.
