Real estate practitioners knock Lagos Govt over –illegal order’ tag on 176 estates
Allege Diasporan subscribers demanding refund of depositors
The tagging of 176 estates as “illegal “ , by Lagos State Government last week attracted a backlash , throwing many residents and stakeholders into panic , as anxiety spikes among investors in the real estate ecosystem with operators already counting the cost of the action.
The Real Estate Developers Association of Nigeria (REDAN), has expressed worries over the development.
The association said: ‘’It comes as a rude shock to REDAN members when the Lagos State Government lists over 170 members as not having or suggesting that its members’ estates do not have the requisite documents to provide sustainable and safe housing for citizens of Lagos State.
‘’REDAN members, many of whom are long-standing, internationally verified and respected estate developers and professionals, have been negatively affected by the public notice, which suggests that all the over 170 estate developments in Lagos State listed have no proper documentation, leading the residents in these estates and investors to panic.
‘’REDAN members have been traumatized by this notice, which has not only caused some doubt in the minds of investors but has led to a significant decline in business for the real estate sector, which in turn leads to further losses of revenue for the state.”
The 176 estates listed by the state government are predominantly located in the Eti-Osa, Ajah, Ibeju-Lekki, and Epe axis of the state.
The government said the estates were deemed illegal due to their failure to obtain layout approvals. It gave the owners of the estates 21 days to regularize their documents or risk their closure.
According to the Permanent Secretary, Office of Physical Planning, Oluwole Sotire, the estates compromised the state’s sustainable development ethos and T.H.E.M.E.S Plus Agenda by operating without approved layout.
An Estate Surveyor & Valuer and FIABCI Nigeria President, Akin Opatola, said the Government has the responsibility to save lives and property and frowned at the use of ‘Illegal’ in the announcement. He said the government would have sought a deeper stakeholder’s engagement that would include all players in the sector. He said a better way to handle the matter would have been to send out the list in a tabular form because it sent a shock in the sector which is dangerous to the sectoral business.
He said: “It would have been in a tabular form like 30 of these 176 estates have reached 70 percent regulisation of their layout and Survey and probably in a month’s time the government will come out with another list that another number of developers have meet the mark. No doubt there will be some bad egg developers but not all of them this would have stabilized the sector unlike what is happening now where there is a run from especially Diasporas and those outside Lagos”.
Opata said the government would have also invited the 176 Housing estate owners to a meeting and if their subscribers hear it they would be the ones to explain to them rather than the government sending panic and fear into the market endangering people’s investment.
Also he said the announcement has destabilized the sector as some developers may eventually lose their lands in addition to the monies they are losing as we speak.
Director Strategy, Female Lawyers in Real Estate , Adaku Chibuike Ochuma said the word illegal can mean deviation from initial approval, layout amendment and not habitable for purpose.
She said: “Government should have used a better term, calling them illegal didn’t send the right message to the real estate ecosystem. Illegal means the developers don’t own the structures where they are, not fit to be in business. A better strategy would have been something like putting out a message that the government would like to meet with these 176 developers”.
Government definitely didn’t threat it well.
