WE see continued recovery in the market. We believe that the recession has bottomed out in the industry, so we expect a significant upswing in the activities in the real estate market”. This cheery observation was made by the managing director of UACN Property Development Company (UPDC) Plc, Mr. Hakeem Ogunniran.

Mr. Ogunniran told Vanguard Homes & Property that many developers who were starved of funds at the peak of the recession in the industry, now have access to credit from commercial banks. “Even in the highbrow areas like Ikoyi, a lot of people are resuming developments. So, for those of us who are the real players in the industry, this is the time for us to enjoy the benefits of staying on while the recession was on in the industry. One of the major problems at the peak of the recession was the lack of credit But credit is gradually returning to the industry from banks,” he said.

The UPDC boss explained that with the coming of the Assets Management Corporation of Nigeria (AMCON), the liquidity problem in banks which made it almost impossible for them to give credit to real estate developers has been largely solved.

Mr .Ogunniran however regretted that whereas developers now have access to credit, buyers hardly get facilities to buy the houses. “There is still a problem at the retail end. We have access to credit but those who will buy our properties still have some challenges. But we are partnering with some mortgage institutions to ensure we create the platform that would enable the buyers to pay once they have the counterpart funding,” he said.

Corroborating Ogunniran’s views on the dearth of credit facilities to home buyers, Arc Richard Uwagie of Nice Properties lamented a scenario where banks give mortgage to home buyers at 24 percent interest.

“Before now, I was talking to one of the banks that is supposed to be providing mortgages and when they told me the interest they would take from our clients, I remember telling them that that’s not mortgage. I am buying a house of N20 million and you are asking me to come and do 24 percent mortgage, that’s crazy and you tell me that my mortgage cannot exceed three years. That’s not mortgage,” he said.