The Nigerian Institution of Estate Surveyors and Valuers (NIESV) Lagos branch has expressed concern over inflation and liquidity challenges facing the country, warning that these constraints are stifling the potential growth of the real estate industry.

The outgoing chairman of the Lagos branch of the institution, Gbenga Ismail, raised the concern at the yearly Surveyors’ Week Thanksgiving at the Chapel of Christ the Light Church, Alausa in Lagos. The forum attracted members of the branch that include honourary financial secretary, Ayodeji Odeleye, Olamoju Ayodele, the incoming chairman; Tosin Kadiri, Estate Surveyor and valuer Olojede. Reverting to the growth path, he said there was a need for more effective policy enforcement to stimulate development and curb the rising costs of goods and services.

Ismail lamented the sharp increase in rents in the city centres, attributing it to a combination of inflation and heightened demand for housing and commercial properties.

He said, “Rents have gone up significantly. But that’s a function of the activity in the market. It means that the marketplace, though inflation is also involved, reflects other factors. As more people are coming in, more people are demanding homes to live and place to work.”

He acknowledged the ongoing construction activities in the housing industry and stressed that the supply remains insufficient to meet the housing deficit, particularly in urban centres.

Ismail also lamented the soaring cost of building materials, which he observed was due to the country’s overreliance on imports. “One area that still needs to be dealt with is the finishes for building. These costs are high because we import a lot of it. The government needs to look at policies that will encourage local manufacturing in the sector.”

He, therefore, called on the government to collaborate with industry professionals to address these challenges, noting that the professionals have the ideas and knowledge to make the marketplace functional.