Mixed Reactions Greet Housing Stock Delivery In 2012

Experts in the housing sector have expressed their views about housing stock delivery in the year 2012, in spite of the perceive obstacles and challenges that are inevitable in housing provision.

While some predict a rise in the cost of housing in both rental and development, others predict a fall in housing stock which will be associated with the petroleum subsidy removal.

In his response to the envisaged 2012 housing situation in Nigeria, Mr Okay Peters, a Quantity Surveyor by training explained that the present situation with respect to rising cost of building materials, particularly cement will make cost of property development to increase this year.

He said that many intending developers will have to reconsider their options in terms of costs at various stages of development, especially with the petroleum subsidy matter that came on centre stage at the beginning of the year, which also coincide with the building season.

Peters said change in prices of petrol will also elicit increase in cost of labour and materials which will translate to increase in cost of development, adding that the end result will be high cost of rental.

For Moses Duke, activities in the building industry will not diminish in 2012, irrespective of increase in price, pointing out that demand for housing will continue to go up, and that investment will contine in such sustained progression.

Duke who is an estate surveyor by profession also explained that government has rolled out some palliative measures, which will in-term have a multiplier effect in the economy, which will make cash available for re-investment in the housing sector.

The security situation in the country was also given as an issue for envisaged investment in housing this year.

Cyril Okwu, another member of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) opined that the menace of Boko Haram in the country will scare people from taking steps to invest in housing, especially in the northern part of Nigeria.

Cyril explained that the series of bombing of houses and relocation of people across the country will scare investment in housing, and this in turn will result to low housing provision in 2012.

Corlins Walter