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Managing Director of Hymac Real Limited, Okey Ayogu has expressed concern over the lax regulatory framework of the real estate sector, saying absence of proper regulations are preventing the sector from achieving its potentials.
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To this end, Ayogu has called on the federal and state governments to address the challenges militating against the progress of the real estate sector by introducing right policies to help drive its growth.
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Speaking during an inspection of Kateland, Graceland and Redemption Estates, three of his company’s estates in the city by Realtors in Enugu, yesterday, Ayogu noted that there are a lot of untapped opportunities in the sector.
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Ayogu, however, regretted that lack of proper regulations was enabling charlatans to sell unregistered lands to subscribers in the name of estates.
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He also frowned at the manner some developers go into selling lands for estate development without first creating necessary infrastructure and enabling environment for inhabitants of such estates.
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“When you look at our estates, you see that so much money has been committed in putting just infrastructure without any building there yet. This is because we are following the world best practices.
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“An estate should have good environment before any building can be erected there.
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“But, what happens here is that people buy land and parcellate them and before you know it, houses spring up there without roads, security, water channels, hospital, school, playground, among other infrastructures.
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“If you are passing on the road, you will see some signposts advertising plots of land in an estate for N2.4 million. You wonder the kind of estate such people will be living in. This is as a result of lack of proper regulations. If there is any regulation at all, the developer would have first put in place the necessary infrastructure before going to the market.
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“If you know how much it cost us to build drainage system in Graceland Estate, you will understand that an estate is not just a fenced land with buildings.
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“Again, somebody will begin to sell land in the name of an estate without a legal title to the land. They sell unregistered land to the unsuspecting subscribers.
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“Government needs to ensure proper regulation of real estate in Nigeria so that when one invests in it, he can be sure that he has assets of a lifetime.
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“When you invest in an unregulated sector, it is dangerous for the economy. It is dangerous for the image of the country or state.
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“Real estate should be such that when you invest in it, you can use the papers to get loan from any commercial banks and continue your business. Yet, the property still remains your own.
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“But, when you invest in a property without good title, you can’t even approach any bank for loan with it. So, that’s what we are talking about. Many people have lost their life savings by investing in assets that had no good titles”, Ayogu said.
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At the event, the Enugu Realtors lauded Hymac Real Limited style of estate development, saying it is unique and in line with world standard.
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They stated that the idea of providing infrastructure including roads, gutters, electricity, water, among others before construction of buildings in an estate saves the environment and gives the company edge over others.
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The Realtors expressed delight with the level of resources the company has committed towards developing the estates, that the idea was in sync with best practices.
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They therefore, urged developers to borrow a leaf from the company, saying that doing so could reduce disasters that may follow from poor and improper planning.
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