Stakeholders urged the government to create an enabling environment to stimulate the idea of affordable housing, as well as create a decent atmosphere for investment to flourish.
They observed that land assembly and ownership are highly dependent on the government, therefore, the government should be proactive in ensuring ease of access to land, while also promoting collaboration with the private sector in affordable housing scheme.
In a communique issued after the 16th Africa international housing show held in Abuja, stakeholders drawn from the public and private sectors, said housing financing bodies should be allowed to operate with full autonomy with efforts made not only to finance new homes but also to ensure allocation. of money for the repair of existing structures to meet world standards.
According to them, alternative funding for housing, including non-interest finance options such as Sukuk and Infra Credit should be adopted to produce housing on a large scale, adding that the impact of the inflationary environment on the housing sector should be solve to secure affordable loans.
“Government should step up support for the Nigeria Mortgage Refinance Company to access the competitive capital market to refinance loans. This is critical to deepening and increasing Nigerians’ access to low-income housing , especially home finance.
They said that solving the challenge of severe housing deficit requires making links between the provision of land to property developers, through increased availability of housing finance, to the reduction of property transaction costs.
According to them, the housing sector offers great economic opportunities in times of recession and the best way to reach sustainable levels of debt and fiscal balance is to grow the economy through consumption and investment.
They said that governments at different levels, recognizing the importance of housing, should initiate reforms and interventions in this sector to bridge the current deficit. This should include setting up policies to actualize some brick-and-mortar projects.
Similarly, they noted that the capital market can be a good engine to drive economic growth and development because fixing the housing problem cannot be left to the government alone. Therefore, the capital market is needed to mobilize the much needed capital to propel the housing sector.
“It is important to consider the urgent need to promote the use of existing and new market instruments that can be used by developers, private sector participants, governments, and other stakeholders to raise and deploy capital to the sector in housing.
They called on government-owned housing agencies to improve their performances, saying that investment in exchange platforms, market infrastructures and technology will help develop new solutions to connect the housing gap.
“The impact of the inflationary environment on the housing sector must be addressed to ensure affordable mortgages, while the equity market capitalization will help expand the reach of projects that can, therefore, help solve financial challenges .”
“The real estate industry has largely recovered from the downturn caused by the covid-19 epidemic. However, the shortcomings of urban areas can be addressed through proper linkages between land owners and property managers. Real Estate Capital instruments can also be used to drive Real Estate in Nigeria.
“Long-term financing should be encouraged by mortgage financing bodies. Housing cannot be affordable if everything in the chain is not accessible. Often, investors only bring money if there is value in the production chain.
“In granting the loans, the income must be verified and accepted by the banks and the loan amortization terms must be predetermined, while an interest subsidy is provided to encourage lenders to participate and also reduce the risk rate,” they added.
The event aims to combine the efforts of the government and the private sector, as well as the structure to end the rivalry between professionals within the housing sector by promoting collaboration with the main players in the industry.
The conference seeks to address the issue of environmental sustainability in recognition of the fact that green housing and funding have become widespread in the world amid a global call to address climate change.
