Stakeholders have blamed under-regulation for the underperformance of the country’s real estate sector.
They highlighted this during the 45th anniversary celebration of Jide Taiwo & Co, Estate Surveyors and Valuers, which coincided with the 75th birthday of the firm’s founder, Jide Taiwo.
The Managing Director of Jide Taiwo & Co, Moses Adeyemi, said the real estate sector was an open market, adding that it was not being regulated.
He said, “The real estate sector is an open market that is not being regulated or controlled. Every Dick, Tom and Harry comes into the real estate market; a retiree that has not been paid would venture into it; a housewife would venture into it, and this is because under a real estate portfolio, there is something we call ‘agency’, and from the definition of ‘agency’, it is somebody acting on behalf of the principal; hence, anybody can act.
“So, it deserves to be regulated, because no organisation can hold them accountable if misconduct happens.
“However, the aspect of valuation is regulated under the body of the Estate Surveyors and Valuers Registration Board of Nigeria, especially for us at Jide Taiwo & Co, being a sector that cannot be done by anybody except a registered professional.”
In a similar vein, the general manager of Jide Taiwo & Co, Abuja branch, Seyi Aluko, asserted that the real estate market, compared to other countries, is far below and under-regulated.
He continued, “Majorly, the developers are taking advantage of this under-regulation; they are going to the bank with people’s money, whereas people are not getting their money as and when due. Some projects are either abandoned halfway or never come close to completion. Still, I won’t go as far as calling the industry fraudulent. It’s more that the market operates on a foundation of minimal standards. Most developers don’t see the need to go above and beyond because they aren’t compelled to.
“Every aspect of the economy is challenged; the legislatures need to do better. We need to reflect on our current practices, our cultural habits, and our values and create laws that regulate real estate investment based on local context. Look at something as simple as renting a house. Landlords want two years payment of rent. In more advanced countries, tenants pay rent monthly or weekly, and everything is tracked. Here, even when someone defaults, it can take over a year to recover your rights, sometimes only through costly court processes.
“In addition, there’s no identity or tracking system to keep records of tenants’ behaviour when they default. Someone could default on rent repeatedly, and there would be no way to trace or flag them. That lack of accountability is a huge problem.”
Also, a Fellow of the Nigerian Institution of Estate Surveyors and Valuers, Oladapo Olaiya, said the real estate sector was not currently regulated.
“We do not have enough regulations that people would comply with; what we have is more like a free-for-all, so we have a lot of quacks gambling in real estate.”
Speaking about the founder of the firm, Olaiya stated that he was an alumnus of Jide Taiwo & Co, adding that the alumni collaborated with the family to organise the celebration for the firm’s founder.
Meanwhile, speaking on the lessons learnt from the celebrant, his first daughter, Jumoke Anifalaje, said her father is a calm, focused and dedicated professional.
She added, “Over the years I have learnt from him that the most important thing is to stay focused, keep your head down, not take the limelight, and do your work as hard as you can.”
