In response to the unprecedented surge in construction costs plaguing Nigeria’s Real Estate sector, the Coalition of Abuja Builders has sounded the alarm, calling for urgent action to avert a looming crisis.
Comprising prominent Real Estate developers primarily situated in the Federal Capital Territory (FCT), the coalition represents a formidable force within the industry. With a collective track record boasting the delivery of over 25,000 homes, their unified voice carries significant weight in advocating for industry advancement and resilience.
Recent surveys conducted by the coalition have revealed staggering price hikes exceeding 100% on average across various construction inputs. This alarming trend, coupled with the challenges stemming from the aftermath of the global pandemic, economic downturns, currency devaluation, and fluctuations in foreign exchange rates, poses grave implications for the Real Estate sector and its associated industries.
In a bid to address the crisis, the coalition commended the swift intervention of the Honorable Minister of Works, His Excellency David Umahi, and the Honorable Minister of Housing, Architect Ahmed Dangiwa. Both ministers convened discussions with major cement manufacturers to tackle the recent surge in cement prices. However, the coalition emphasized the need to extend these efforts to other critical sectors, particularly Steel Reinforcement (Iron Rod) and Aggregates (Quarry Products).
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Furthermore, the coalition underscored the urgent necessity for regulatory reforms and policy interventions aimed at mitigating the impact of inflation and escalating building material costs. Streamlining bureaucratic processes, incentivizing local production, fostering public-private partnerships, and recognizing the pivotal role of the real estate industry in employment generation were highlighted as imperative steps to stabilize the sector and stimulate sustainable economic growth.
As the coalition reaffirmed its commitment to collaborating with the government and other stakeholders, their message resonated with a call for urgent action to address the pressing challenges facing Nigeria’s Real Estate sector.