REAL ESTATE NEWS UPDATE| September 12th 2017 #3inews

Imposing Monthly rent payment will not work – Expert gives reasons.

The National Council on Lands, Housing and Urban Development (NCLHUD) in its bid to alleviate the rental challenges of the citizenry is making attempts to impose monthly rent payment for Nigerians. Industry experts have rather urged the governments to tackle the inherent problems inhibiting housing rather than delving into issues expected to heighten problems in the industry.

The experts, comprising estate surveyors and developers who expressed divergent views say, the proposal will increase house rents, discourage property investments; engender black market dealings among other vices. They rather suggested that the government should launch social housing program to assist the low-earning and provide cheaper housing finance to developers at a single digit loan.

Currently, property owners/landlords compulsorily demand between one to two years’ rents from their tenants. This situation was what prompted the Council (Comprising of  the highest assembly of senior officials of the Federal and State Governments, and experts in the housing sector) to make a move to declare the enforcement of a law on monthly rent payment across the federation, with the aim to ameliorate the challenge of accessing housing in Nigeria.

Speaking of the proposed law, the Lagos State Chairman of Nigerian Institution of Estate Surveyors and Valuers (NIESV), Rogba Orimolade said the reality is that there is an existing shortage of housing stocks hence bringing regulations will amount to imposing a black market situation.

He emphasized that the main issues, which revolve around the vicious circle of the challenges affecting the sector include finance, cost of building approvals, the cost of doing business in terms of building stocks of houses, tilting, making registration of governors consent cheaper.

Mr. Sam Eboigbe who is the Chairman, Faculty of Estate Agency and Auctioneering, NIESV, gave his opinion stating that for such proposal to be implemented, core professionals and relevant stakeholders must be consulted for effective implementation. According to him, if the cost of funding and other variables required in making housing available is still high, the reality of such resolution is in doubt for the housing sector.

The Managing Director/Chief Executive Officer, Tetramanor Limited, a property development Company Mr. John Beecroft observed that the initiative has been in practice in other countries such as the United States of America but remarked that Nigeria standard is not ripe for it, based on some observable loopholes in Nigerian legal structure.
Culled from: The Guardian

Governor Ambode flags off construction of Agege Pen-Cinema Bridge

Mr. Akinwunmi Ambode, the executive governor of Lagos state recently flagged off the construction of the Agege-Pen Cinema Bridge with an assurance to deliver the project by December 2018.

The governor who was represented at the flag-off by Mr. Adebowale Akinsanya; Commissioner for Waterfront Infrastructure Development, said the flyover when completed will be equivalent in standard to both the Ajah and Abule-Egba bridges.

He appealed to residents to cooperate with the contractors handling the project and manage the inconveniences that would arise during the construction.

To ensure that this project measures up to world class standard, the reconstruction has been awarded to a tested and proven contractor, Hi-tech Construction Nigeria Ltd. The firm is prepared to work round the clock in two shifts to ensure the timely completion of the project.”

Ambode expressed his concern for road users and stated that to minimize the inconvenience to road users that ply this route during the construction stage of the flyover, alternative routes for traffic diversion were identified after a thorough reconnaissance survey with a view to serve as bypass from the construction zone as well as ensure seamless flow of traffic while the construction activities are ongoing within this corridor.

“Let me say without mincing words there are bound to be some inconveniences during the construction period but measures have been put in place to mitigate the impact. We, therefore, solicit your cooperation, support and understanding keeping in mind that the ultimate goal is to facilitate improvement in the quality of life and overall standard of living of communities within the vicinity of the project” he said.
Culled from: Worldstage news

Expansion in Ikate Land aimed to accommodate the growing Lagos population – Elegushi

As part of efforts to accommodate the growing population in Lagos state, the traditional ruler of Ikateland, Oba Saheed Elegushi, explained that the kingdom is extending its territories to Lagosians.

He said this on Saturday at the groundbreaking of a new city in Lagos known as the Imperial International Business City, a joint venture development between Channeldrill Resources Limited and the Elegushi Royal Family.

Elegushi said the project was conceived after the Lagos State Government gave approval for the expansion of Ikate Kingdom by 200 hectares of land to Lekki Phase 1, through dredging of the lagoon, adding that the proposed city would stretch from the end of Freedom Road to the end of NICON Town.

He added, “The Lagos population is escalating and there is a need to expand the kingdom, that was how the vision of the new city was birthed. We have been on it for some years; it is still like a dream to me, because a lot of people didn’t believe we could do it.”

Mr. Femi Akioye, the Managing Director, Channeldrill Resources Limited, said the city had been designed for residents to live and also work, adding that plans had been made to ensure that it remained flood-free for at least 75 years.

He stated the city would be utility self-sufficient to ensure perfection in infrastructure efficiency and would be connected by future high-speed water transportation, high-speed rail and expressways to other parts of Lagos mainland, island and beyond, with a mix of villas, town houses and medium density apartments as well as a business district.

Mott MacDonald Limited of the United Kingdom, who is the project infrastructure consultants, said that the infrastructure design of the city would be based on ensuring that the city was self-sustaining; smart and eco-friendly with a steady flow of traffic; a flood-free lifetime of 100 years; general utility efficiency, and the best technology.

Hence the city is to be designed to align with the future developmental expansion outing into cognizance the population growth of Lagos State for the next 50 years. The dream of making this a reality has been further boosted with the Lagos State Government’s 2030 transport vision plans, which will be very useful for IIBC connectivity design,” leader of the Mott MacDonald team, Stuart Croucher said.
Culled from: The Punch

Promasidor acquires Lagos ‘Champion House’

Promasidor Nigeria Limited, makers of Cowbell, Onga, Toptea and Loya Milk have concluded negotiations for the acquisition of an N2.5 billion mixed-used development known as ‘Champion House’ situated along the Oshodi- Apapa Expressway. This deal was struck with Champion Newspaper Limited, publishers of Champion as part of efforts by the food company to expand its operations.

Although the details of the deal are still sketchy and shrouded in secrecy, The Guardian learned that the deal consummated recently might be about N2.5 billion, which was the asking price for the property.

The acquisition of the building was part of the South African beverage and food-products firm’s expansion agenda as its radar has been in the building for its vintage location. The property comprises four-story structure and warehouses had lingered because of labor issues before the transaction was concluded earlier in the year.

The Head Legal and Corporate Communications of the firm, Mr. Andrew Enahoro confirmed the acquisition and said it was part of the expansion agenda of the company.

Olivier Thiry, the Managing Director, also explained that the capital injection would be used to support purchases of new machinery that will enable PNL to increase efficiency, expand production and develop new products, leading to greater availability of nutritious food products in Nigeria at competitive prices.

His words: “This is a very competitive market for food products. We expect that this investment will help us optimize production costs, enabling us to reach and nourish more consumers with our affordable range of quality products. We will also target our portfolio extension by gradual integration of more locally sourced raw materials from producers in Nigeria and widening our network of distributors”

According to him, the investment became necessary in view of the numerous business opportunities in the Nigerian market.
Culled from: The Guardian

 

Urban renewal in IMO State will attract investors – Rochas Okorocha

In spite of the recent torrent of criticisms the Imo state government is receiving with respect to its urban renewal effort, the governor is rested in the fact that the initiatives taken will make the state one of the best in Nigeria and attract foreign direct investments.

According to Governor Rochas Okorocha, “the project christened ‘Imo My Pride’, is expected to ensure that Owerri becomes dreamland for tourism and livable like other Cities in the world”.

Okorocha, while speaking with newsmen said; “The issue of Ekeukwu was taken beyond the scope it represents, and I still maintain that its removal was the best thing that has happened to Owerri and has brought sanity to the city”.

“Our effort will make our State a tourist center and will encourage investors to come into our land, we shall continue with the urban renewal as we widen the roads, distill the gutters, relocating markets and making sure that Keke Operators are no longer in the streets of Owerri City”, he stated.

On the alleged neglect of occupants of the market, Okorocha said: “To say that no provision was made for the traders is not true. Ekeukwu, as it stands, has about 1,600 shops; today Imo State government has provided over 11,000 shops.

“Adequate preparation was made and we have been on this thing for the past five years and traders know that they will one-day leave that place. Politicians went to court without the consent of the traders and got an interim junction which had expired over one year and the property was adequately revoked and gazetted before the action was taken”, he explained.
Culled from: The Guardian

Professionals attribute building collapsing to poor practice

Experts have attributed building collapse to non-engagement of professionals and sharp practices such as the use of substandard materials.

A properly constructed building is expected to be in use for a very long time, but the rampant cases of buildings collapsing in various locations across the country have posed a great challenge to government and professionals in the built environment.

Although some professional bodies have been charged with the accreditation of building professionals as well as regulating their practice, little has been achieved to avert the regular cases of building collapse.

The Council for the Regulation of Engineering in Nigeria (COREN) recently decried the increase rate of building collapse in the country and suggested new legislations to deal with cases of negligence on the part of developers and quacks who fail to use professionals in the execution of projects.

COREN president Kashim Ali said that investigations carried out on the collapsed buildings showed that improper designs, poor quality materials, and improper site practices were the major causes. He said that where professional engineers were found to have been involved, the COREN tribunal has enforced necessary disciplinary measures.

The Nigerian Society of Engineers (NSE) and Association of Professional Bodies of Nigeria (APBN) also called for the conduction of integrity tests on all buildings suspected to be substandard across the country to find a lasting solution to incessant cases of building collapse in the country.

In view of this, the National Council on Housing and Urban Development instituted the process of evolving a National Building Code (NBC) which sought to proffer solutions to the hazardous trends in the building construction industry. The code is to provide the minimum standards for building pre-design, design, construction and post-construction with a view to ensuring quality, safety, and proficiency in the building industry. The code was slated to be reviewed after every 3 years in order not to render the code obsolete.

However be it as it may be, experts have been unanimous in calling on government at all levels to ensure standards in construction works through adequate monitoring using the state department of development control.
Culled from: Daily Trust

Nigeria’s Skepticism About the New UN-Habitat Urban Agenda

With the unfolding controversy over the reform of UN-Habitat, the General Assembly kicked off a high-level meeting on a new UN approach to the rapidly urbanizing world.

Some of the diplomats that spoke at the forum were unanimous in their submissions: saying that the proposal for UN Urban, an agency that would coordinate a global approach to urbanization should not be approved.

The most vocal opposition came from a negotiating bloc of African countries that have traditionally been among the strongest supporters of UN-Habitat, which is based in Nairobi.

New York-based, Minister Plenipotentiary, Nigeria Permanent Mission, Akinremi Bolaji endorsed the statement delivered by the Ecuadorian Minister María Alejandra Vicuña, who spoke behalf of the African Group and Ecuador on behalf of the G77 and China. She raised concerns about the funding, structure, and scope of the proposed entity.

Bolaji recalled that during the various Prep-com meetings towards Habitat III, an attempt was made to put into the outcome document, a call for the devolving of some of UN-Habitat’s functions, to a new city agency to be created, “UN Cities”, to be located ostensibly in Europe. “The attempt was set aside thanks to bold and vigorous objections by the Group of 77 plus China with Kenya at the forefront,” he said.

According to him, Nigeria’ desire not only to see the actual implementation of the New Urban Agenda but also to see a re-energized UN-Habitat that will serve both developed and developing countries. “One way to re-energize the UN-Habitat might be to ensure that credible leadership is placed at the helm of affairs. A Level playing field is a major requirement in the search for leadership, it should not be beclouded by any extraneous factors, rather capacity and integrity,” he added.
Culled from: The Guardian

Dunes Mall opens in Walvis Bay in October

Dunes Mall; Namibia

Walvis Bay gets ready to welcome Dunes Mall, a 27,500 m2 development from South African property developer and investor Atterbury, in partnership with local developers Tradehold, on 26 October 2017.

The new R500 million mall is located in the key Namibian port city, providing residents with a quality regional shopping center. The mall, which will be managed by Atterbury, will be the largest in the area and the second largest in Namibia after The Grove Mall of Namibia, also developed and managed by Atterbury and is expected to be a catalyst for even more development and investment in the area.

Walvis Bay is currently enjoying substantial growth, with significant investment being made in its port. The mall was developed to respond to this and is being positioned to meet both retailer and consumer demand.

“The fact that this is the first regional shopping center in Walvis Bay, says it all. We have designed and built a shopping center that would stand out anywhere. The design and finishes are of a high quality and there will be no need for locals to leave Walvis anymore, there will be a quality shopping center on their doorstep,” says development manager for Atterbury, Evert Kleynhans.

Dunes Mall benefits from a prime location at a major road intersection, close to the city’s airport and the tourism area of Swakopmund, providing a comprehensive variety of shopping and entertainment for Walvis Bay residents and visitors, as well as people from throughout Namibia’s greater Erongo region.
Culled from: Bizcommunity

UAE Property Market Poised For Growth in 2018

According to the latest property report from Cluttons, as the UAE government pioneers, fiscal adjustment in the region in response to declining oil prices, milestones such as Expo 2020 and the introduction of VAT will play a key role in boosting the country’s property market

Cluttons’ 5th annual UAE Property Market report asserts that an increase in the rate of economic expansion is expected in 2018 and 2019, underpinned by higher spending levels. For the country’s real estate markets, this is expected to translate into widespread stability and marginal growth in some segments by the end of 2018.

Faisal Durrani, head of research at Cluttons said: “We see a number of positive indicators for the UAE’s property market as we head towards the fourth quarter of 2017. While Expo 2020 is well documented as the shining light on the horizon, we view the government’s plan to introduce a formal tax regime as a tremendously positive step and are confident that it will help cement much-needed alternative revenue streams. Once the market absorbs the changes caused by the introduction of VAT, we expect to see a resumption of growth.”

While the market continues to recover, the report also highlights how each emirate is performing in the aftermath of the oil price drop, which is the single biggest factor that has impacted the market in recent years.
Culled from: World Property Journal

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