Real Estate Market wants CBN to Suppress the Effects of Forex Scarcity
The real estate market need the Central Bank to lend a hand...
In Nigeria’s ever failing economy, everyone is after the means to survive and make things work out for them, for the real estate market, it is no different.
For them, they want the Central Bank of Nigeria to take action and make things much easier for investment in the sector. For that to happen, they implore the government’s bank to reduce the effects of forex scarcity in the economy to ensure there is quite enough supply to go around.
This is to ensure assistance is rendered to investors coming into the real estate market to be able to garner building materials from abroad.
The Group Manager of Project Herel Global, Mr. Osamudiame Ogbeide while at a media briefing in Lagos, explained the importance of forex n the real estate sector especially for investors particularly because building construction equipment are imported from Europe and Asia.
These include equipment such as light fittings, tiles, elevators and in essence forex cannot be avoided.
Ogbeide complained heavily about the difficulty in accessing forex through the parallel market and as a result has made producers of building materials to hike prices.
“Even people that have production factories today in Nigeria, who would typically base their prices in naira are now making it US dollar dominated.” He explained.
The Group Manager revealed how the inflation has negatively impacted the sector, creating numerous shifts in prices of commodities and also led to the scarcity of others.
“We have to consider inflation as something we cannot run away from. So, if you are looking at a project that will run for say 24 months or even 12 months, right, because we have seen shifts between prices as high as 10x 5x in the space of a month or two.
“So, you are not talking about 24 months, you’re talking about 14 months depending on the project. You have to postulate inflation and study the trend.”