2.6 the Problems of Real Estate Development Essay

844 Words Feb 20th, 2013 4 Pages
THE PROBLEMS OF REAL ESTATE DEVELOPMENT Problems of real estate development according to Omole (2001) are; 1. land acquisition problems ; The entire real estate development takes place on land, purchase of land from individuals involves exorbitant price due to the activities of land speculators. The land policy was promulgated in 1978 to solve this problems but it failed too. Ironically, the land use act that was enacted to enable Nigeria have access to land, hinders property developers from acquiring land for real estate development. Rigmarole processes involved in acquisition of land, cumbersome and costly procedures involved in processing certificate of occupancy and the section 34(8) of the land use act allows the …show more content…
This is due to the discriminating importation of building materials into the country. According to the president of the Nigeria institution of estate surveyors and valuers, Mr. Bode Adediji (Thisday Newspaper, August 23) “uncontrollable reliance on imported building materials affects development in Nigeria. The collapse of formerly thriving building material sub-section and the absence of new building material factories contribute to this. Also the low exchange rate of our currency contributes to high cost building material in the country. Our currency had greatly dedued compared to some currencies like us dollar. Therefore building materials imported into the country is more expensive when the price is converted to the value of the local currency. 5. Lack of basic infrastructure; haphazard condition of basic infrastructure in the country constraints the real estate developers from participating actively in development in Nigeria. The basic infrastructural facilities such as pipe borne water, electricity, access road which attract people to an area are not adequately provide in the buidable site. This would make the developers not to implement their idea of development thereby affecting real estate development in that area. 6. Dearth of building professions; building professionals

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