Showing posts with label Real Estate Unite 2014. Show all posts
Showing posts with label Real Estate Unite 2014. Show all posts

Thursday, October 9, 2014

Governor Fashola’s Key Note Address @ Real Estate Unite 2014…

Experts, investors, professionals and other stakeholders in the real estate sector have said that the growth of this sector, which is considered critical to the growth of the economy, is dependent on infrastructure development and sustainable financing, noting that the sector’s contribution to national GDP estimated at 7 percent is too low given its enormous potential.

In his keynote address at the conference, Governor Babatunde Fashola of Lagos State, highlighted approaches that could bring about sustainable financing for the sector, citing the Lagos Home Ownership Mortgage Scheme (LagosHOMS) and how the scheme underpins his administration’s ability to create a sustainable financing mechanism that could provide affordable homes for the middle class.

Fashola, who described the initiative as a typical sustainable affordable housing strategy, assured that by the scheme’s one year anniversary, it would have produced equal number of housing units which the Federal Mortgage Bank of Nigeria (FMBN) has struggled to produce in its 22 years of existence.

According to him, one of the sustainable mechanisms instituted by the state to drive the scheme is the monthly savings of N500 million from the state’s internally generated revenue (IGR), revealing that as part of efforts to spur growth in the real estate sector, the state government has resolved to share the cost of providing infrastructure between itself and homeowners.

“What we do is to provide some of the infrastructure such as the main access roads into private estates and LagosHOMS but for the internal roads, the cost is shared among all the residents to be paid over a period,” he said, adding that the absence of sustained infrastructure provision in any society encourages slums development.