Policy, documentation, material cost major industry challenge, says James Cubitt
Nigeria has a burgeoning real estate industry which derives its great and exciting potential from the country’s large and growing population and fast-paced urbanization that have pushed demand for real estate assets almost to the limits.
The industry has witnessed tremendous activities and seen growth estimated at 8.7 percent (as at 2013), yet analysts say these could have been more if the industry were less challenged by factors James Cubitt Developments (JCD)—a major industry player—has summarized as government policy, title documentation and cost of building materials.
Government policy which borders on land administration is a major challenge to real estate because, in most states of the federation, it takes almost forever and at prohibitive cost to register property and get building approval and other titles including Governor’s Consent.
When officials of JCD gathered journalists for an interactive session in Lagos recently, discussions were centred on these challenges and, according to Oyediran Akinniranye, the company’s managing director, about 60 percent of building materials used in Nigeria is imported, advising that though there were quite a number of good materials in the local market, “one needs to be extra careful to avoid buying fake and substandard products”.
The quality of manpower, including artisans and architects, is another big issue and this is because, as Alan Davies, the chairman of James Cubitt Group put it, “the quality of graduates have dropped consistently over the years and it is only those who have extra flair and exposure for architecture that can truly be tutored and mentored on the job”, pointing out, however, that significant progress had been recorded by the private sector in the development of artisans.
As the real estate development subsidiary of James Cubitt Group, which was founded in Nigeria in 1956, JCD talks about Nigerian real estate industry from the position of knowledge and experience having been in development and consultancy practice with focus on delivering long term value to its clientele.
With presence in Lagos, London, Accra and the United Arab Emirate, the group has a history that has helped it to build solid reputation for excellence and professionalism in the Nigerian real estate, also placing it in the top five influencers in the industry.
“Through our portfolio of products and services, we help our clients to successfully navigate often complex real estate transactions to ensure healthy, long term returns on their investments”, Davies assured, adding that they worked with a unique financial model that allowed their clients the opportunity to own parts of a project or building after payment over a number of years.
The company has a long track record of involvement in the design and/or development of iconic projects in Nigeria with their first outing being the design of the University of Nigeria, Nsukka (UNN) followed by University of Jos, University Teaching Hospital in Port Harcourt, Obafemi Awolowo University, Ife and the development of the University of Lagos Senate Building.
It has also done a number of commercial and residential developments including Guinness head office, Civic Centre, Lagos, Coca Cola Head Office Residential Development, UN Building, Abuja, Maersk House, Tema, Ghana, Mosafejo Residence, Ikoyi, African Capital Alliance Head Office, among others.
CHUKA UROKO