The post 6 Reasons Why Your Home Lingers Too Long In The Market appeared first on 9japroperty.

Coker, who spoke at the unveiling of Previs, a company designed to provide properties to professionals and mid-sized companies, said the demand for home ownership in the country far outweighed supply, and this had created room for quackery.

He said, “With the national housing deficit currently pegged at 17,000,000, it is little wonder that developers are springing up everywhere with all sorts of schemes. Given that there is no real barrier to setting up a development company and no agreed standard for what it takes to be a developer in Nigeria, the market is currently highly fragmented, and gets worse as you go from the premium to the mid-market and to low income housing.

“With such a high deficit and no proper guideline for developers, the government is constantly playing catch-up and is not sufficiently staffed to enforce building approvals and standards. So, many people have lost money and even lives as they have been subjected to various schemes from unseasoned and unprofessional developers.”

He however stated that in recent times, reputable construction and development companies had begun to take an interest in the middle-income housing market, and were helping to set standards for the delivery of housing to this segment.

He added, “The number one consideration when acquiring real estate is not how cheap it is but its potential as a store of value. If you build a cheap house that collapses within a year or two, you lose value; if the house is no longer tenantable within five years, you lose both income and value. Unfortunately, this is what we have been witnessing in the mid-market.

“But being a member of James Cubitt companies in Nigeria, Previs enjoys a heritage of 60 years in the Nigerian real estate market and brings that experience to bear on the home delivery value chain.

“The company aims to set new standards of housing delivery, from design to development, fit outs and facility management. Our developments will be offered on flexible payment plans that will disrupt current models in the market.”

PUNCH.

The post ‘Nigeria’s real estate market not organised’ appeared first on 9japroperty.

It also directed that the house of Alhaji Kamaru and other buildings on water channels at the Irewolede Housing Estate in Ilorin beremoved immediately to ensure free flow of storm water.

The House gave the directive in its resolutions on areport by its Committee on Land, Housing and Urban Development regarding a petition entitled: ’Save Our Soul’ by Mallam Jimoh Alabi.

The Deputy Speaker, Mr. Mathew Okedare, who presided over the sitting, said the directive became necessary so as to prevent flood related disasters in the state.

The House also directed that the land sold by the housing corporation, which stand on waterways, should be revoked and the refunds made to the buyers.

It urged the state government to reprimand the leadership ofthe housing corporation to check indiscriminateconstruction on waterways in the estate.

The lawmakers also directed the state housing corporation to as amatter of urgency upgrade the Isale Ajanaku road and open the Igbaja road inthe estate with a befitting drainage system as captured in the 2016budget.

PUNCH.

The post $1tn to enter global real estate market appeared first on 9japroperty.

The post Strongly pro-landlord rental market appeared first on 9japroperty.

Deposits
Rents are paid, in advance, for two to three years. Some landlords accept advance payments for only one to 1½ years; however, in that case rents are significantly higher.

What rights do landlords and tenants have in Nigeria, especially as to duration of contract, and eviction?
Contracts last for the duration of the advance payment, typically, one to three years. An option to renew with rent adjustment can be included in the contract. If the tenant pre-terminates a contract, no refunds are made. Subleasing can be included in the contract.

How effective is the Nigerian legal system?

Under the 1997 Recovery of Possession Law of Lagos State and the 1991 Recovery of Possession Edict 1991 of Rivers State, only the court can order the eviction of tenants. The court process is slow and cumbersome. Landlords evict tenants using an assortment of tricks, phony legal cases, intimidation, locking out tenants, and physically throwing them of their property.

Nigeria lagros propertiesThe State of Lagos offers a Citizens Mediation Centre for resolving landlord and tenant issues. If mediation fails, the parties involved can seek redress in court.

Legislation
The Land Use Act of 1978 covers the use and rental of public lands. The State of Lagos has an un-enforced Rent Control of Residential Premises Law and Recovery of Possession Law. The Rivers State likewise has an unimplemented Recovery of Possession Edict.

The post Strongly pro-landlord rental market appeared first on 9japroperty.

Fundamentally, real estate investment is the only mainstream investment that has the capacity to absorb inflation. When there is inflation in an economy most of the investment vehicles lose their value significantly and either does not recover from such a shock or take very long time to regain their value. Real estate investment on the other hand absorbs inflation and re-adjusts itself to fit the market. When there is inflation in the economy, in due time, rents on residential and commercial properties will increase. When the economy bounces back prices of those properties reflect the new value.

There are two basic seasons that we can easily recognise when it comes to real estate investment. The first is the trend called ‘a buyer’s market’ and the second called ‘a sellers’ market’. In a buyer’s market, the value of properties is generally depressed thus making it easier and cheaper to buy properties. The attractiveness of most properties derives from their low prices. In a seller’s market, the value of properties is on the upward swing and the competition to buy properties has reached a stage where buyers are willing to outbid themselves. The sellers, in this scenario, hold the ace. The seller could take advantage of the opportunity before him at a higher profit by playing the buyers against each other.

One of the basic requirements for success in a buyer’s market is information. There is no point entering the market late and buying at a premium if you can avoid it. Once you have a clear real estate goal for the year in mind it becomes relatively easy for you to evaluate those goals and begin your research on the best way of accomplishing them. A fundamental rule of success is focus and goals sharpen your focus. You need to keep yourself informed as to the dynamics of the particular neighbourhood that you are focusing upon. The moment you begin to notice consistent ,regular and rapid increase in value you should make every effort to buy a property in that area while the prices are still reasonable.

Be objective. Many people get on the bandwagon of real estate when they notice the rapid appreciation in value and they have the money to invest. There is always a key area of caution when it comes to the buyer’s market and that is the fact that if you do not buy the property at the right price or lesser you are likely to buy an overpriced property which could totally erode all your previous gains. If the price is not right, let it pass.

Most buyer’s market are characterised by easier access to loans and money. Sometimes a buyer’s market is triggered by low interest rates and less rigid requirements from banks when you apply for a mortgage. Some investors are usually carried away by all these and fail to objectively evaluate the opportunities around them. Some over extend themselves by taking on loans that are more than the value of the property. When economic crisis come, it is investments like these ones that still owe banks and when they decide to offset the loan with money derived from the property they are amazed at the loss of value. Those who gloss over the reality of a bubble bust always pay for it.

A booming market will not stay like that forever. You need to study the trend, find out the actual value of the property and try to buy close to that. Money is made in real estate the moment you buy. This is why most masters of the game strive to buy properties less than the actual value in order to protect themselves against any sudden downturn. This margin of error gives the investor room to manoeuvre if there is any problem. If you consider the price outrageous then consider putting a hold on such an investment.

PUNCH.

The post What to do in a seller’s market appeared first on 9japroperty.

When demand for properties exceeds the number of properties available for purchase then it is a seller’s market. Sometimes an area begins to attract investors or buyers for various reasons such as a major infrastructural development that are coming up nearby. The interest shown in that area could be slow at first then it suddenly gains momentum to the extent that there are not enough properties to meet the demand. Once this point is reached sellers begin to increase the prices of their properties in order to play on the overwhelming interest shown by investors and maximise their profit. This is a classic pattern of a seller’s market.

There are also times when the economy not only slows down but probably faces some challenging times. The classic pattern in history is when there is a major or series of events that impact on global or national economies negatively resulting in closure of companies and job losses. The ripple effect of these events is that companies re-evaluate their need to invest and governments embark on cost-saving measures. The overall effect is that the amount of money in circulation dwindles and this could lead individuals and corporations into tight economic seasons.

When the economy enters periods of recession or economic slowdown one of the key indicators that there is a problem is in the real estate sector of the economy. When companies are bankrupt the investors or lenders resort to the sale of assets which generally include real estate. When individuals are looking for ways to raise money they usually consider selling assets which generally mean properties. When individuals lose their jobs or their businesses are bankrupt the only way for many to avoid foreclosure on their mortgages is by selling their properties.

The more properties that are available for sale in an economy with less money in circulation, the more it becomes a buyer’s market. Once supply has exceeded demand buyers begin to shop around for bargains since they now have more options .In a buyer’s market, many properties for sale stay longer before receiving any serious offer and during the waiting period more properties with similar or better advantages are also brought to the market for sale. Under such circumstances, sellers that are under pressure for money will usually become more flexible with price thus indirectly forcing other sellers to reconsider their selling price.

In a buyer’s market, you need to adopt a proactive approach to marketing your property. The more you are willing to work within the bounds of reality the better chance you have of selling your property faster than the average turnaround time. Due to the intense competition for less money in circulation, it is best to engage professionals to help you manage the process. Sometimes the big firms may not be the best because many of them are already overwhelmed with property briefs. It may be more pragmatic to give your property to a small or a medium firm who have the drive and passion for succeeding and would like to impress you with their service delivery.

In addition, you should make the best effort to put your property in an attractive state. This is not the best of times to leave a property in a less than average state considering the competition in the market. While I do not encourage you to make a significant investment in the property you should consider the little things that could attract or repel an investor. For instance, when you are selling a residential property most buyers would be interested in the kitchen especially when inspecting with their spouses.

Finally, be reasonable with the price and prompt in your response to offers. This is not a good time to place an inflated price tag on your property because many investors will not even take a second look. Find out what the average price is and stay close to it but be flexible in your negotiation. When you do get reasonable offers be prompt in responding to them since delay could mean a lost transaction. Do not allow your ego to interfere with the reality of the season.

PUNCH.

The post What to do in a buyer’s market appeared first on 9japroperty.

The Managing Director, Resort Savings and Loans, Mr. Abimbola Olayinka, said at the bank’s 8th Annual General Meeting that the mortgage sector had been operating in a very challenging time, adding that the company presented many houses into the market but could only find few buyers.

According to him, the situation has affected wealth creation for stakeholders.

Olayinka said the banking industry operated in a tight monetary system combined with multiple regulatory guidelines, deteriorating earnings and increasing costs.

“The company targeted raising new capital to boost operational base but the success that could have been recorded from raising new capital was seriously affected by the state of the economy majorly due to lack of interest of people in the capital market,” he explained.

The RSL boss noted that despite this, the bank was able to grow its deposit base by close to 100 per cent, from N1.6bn to N3.6bn.

“The bank’s balance sheet by the year 2013 had high level of investment in real estate, which gave the management the advantage of conversion of real estate investment to mortgage assets,” he said.

The post Resort laments low activity in property market appeared first on 9japroperty.

A PricewaterhouseCoopers’ mid 2015 report had stated that the Nigerian real estate sector would be valued at $13.65bn this year, compared to $9.16bn in 2014, accounting for 7.6 per cent of the country’s Gross Domestic Product.

One area that will experience boom in the sector is office development, with over 150,000 square metres of lettable space currently being produced for delivery over the next six months to one year.

A report by North Court Real Estate, entitled: ‘Nigeria real estate market outlook 2016’, stated that the office development pipeline had so much to offer.

It added, “The development pipeline has never been so robust; it is difficult to predict the potential process of absorption. Over 150,000sqm of lettable space is currently being produced for delivery within six to 24 months. That’s not counting inactive developments that have been stalled.

“The office development pipeline is very rich. Never has the nation enjoyed such influx of investment office space available for take-up by third parties as against owner-occupation, which was the norm in the past. The invasion may drive prices down moderately; we also postulate that occupiers may surrender leases in older buildings in preference for new builds, which may be willing to offer competitive prices.”

As expected, Lagos, according to the report, will continue to take the lead with over 25,000sqm to be delivered, with Ikoyi officially becoming the prime office destination, while Eko Atlantic City gradually takes shape; Abuja and other second tier cities will follow.

Some high grade office spaces expected to be delivered include the African Capital Alliance’s 6,670m2 Alliance Place in Lagos, with a construction cost of N165m, and the 15,734m2 Heritage Place being developed by Actis.

Others are The Wings, a 27,000m2 luxury office space being developed by RMB Westport and Oando Plc; Lake Point Towers; Madina Tower; and the 26,000m2 World Trade Centre in Abuja.

According to the report, some developments were delivered in 2015 such as the Civic Towers and Landmark Tower, which both enjoyed fairly rapid take-up but at rates less than originally desired due to the economic crunch.

“In all, there were not as many lease transactions as developers and realtors would have hoped. Some A and B-grade offices have remained empty for a prolonged period as most companies opted to remain in their current spaces. Existing rents have either stayed or lowered across locations, while new leases were closed at low rates,” it added.

The Director, Real Estate Advisory, North Court Real Estate, Tayo Odunsi, noted that office projects close to completion would create a lot of leasing activity in 2016.

“But that same cannot be said for new constructions. In all, real estate will be responsive and reactive to positive or negative economic sentiments, respectively.

“The outlook for the Nigerian real estate market in 2016 will be largely dependent on the overall performance of the economy as the demand, supply and price of space is contingent on the well-being of occupiers, developers and investors,” he stated.

Despite the lull in the retail sub-sector, it is also expected to experience some growth based on certain economic indices.

The retail pipeline is expected to take delivery of over 100,000m2 of space with developments such as the Abia Mall, Asokoro City Mall, Benin Mall, Onitsha Mall, Owerri Mall, Maryland Mall, Oasis Mall and Capital Mall.

In the residential sub-sector, experts say there will always be demand but that the supply gap needs to be covered.

A partner at the real estate surveying and valuation firm, Osas and Oseji, Mr. Kehinde Akinyemi, said the sector would still do well because it was expected to, in spite of whatever turn the economy took.

He added, “The first priority of any human is to get accommodation for himself and his family. What may not happen is the hype of values going up, but there will still be activities in the sector.

“Now that we have a civilian government, more investors will still come to the sector in spite of all the negative projections; there is confidence in the sector and when these investors come in, they will demand for residential and office accommodation to establish businesses.”

According to him, the ability of any subsector of the industry to do well will depend on the location of the transaction.

“Where commercial will do better than residential will be a function of the location; if you are in a commercial area, commercial real estate will do well, but if you are in a densely populated place, residential will be considered,” Akinyemi said.

The post Experts expect robust real estate market appeared first on 9japroperty.

A statement jointly signed by the Acting Managing Director, FHA Homes Limited, Mr. Hayatudeen Awwal, and the Head, Business Development, Mr. Stanley Oparaocha, noted that Nekonini had been performing to the satisfaction of the agency.

According to the statement, the project located in Abesan area of Alimosho Local Government Area of Lagos State consists six blocks of 36 units of three-bedroom flats.

The Chairman, Nekonini Business and Properties Limited, Mr. Niran Akinsuyi, was quoted as saying that the property was suitable for the comfort of middle class families, who craved convenience and privacy.

He said basic modern amenities, including water and power supply, parking space, well-lit neighbourhood and security, were top priorities in the construction of the estate.

“The environment is conducive with the property standing among the best in the vicinity, and unlike developers that promise what they cannot offer, these flats are already made. It is just pack in and live,” he said.

The post Nekonini to market Abesan housing scheme appeared first on 9japroperty.