Inflation driving homeownership out of reach – Secretary, NIESV Lagos
The Principal Partner of Akinhanmi & Associates (Estate Surveyors & Valuers) and currently the Honorary Publicity Secretary of the Nigerian Institution of Estate Surveyors and Valuers, Lagos Branch, Olatokunbo Akinhanmi, shares his thoughts on the challenges plaguing the industry in this interview with JOSEPHINE OGUNDEJI
What do you think are the biggest challenges currently facing Nigeria’s estate surveying and valuation industry?
The estate surveying and valuation profession has faced a fair share of challenges over the years, many of which we have successfully navigated and overcome. However, in my personal opinion, the most pressing challenge today is the increasing encroachment of untrained and unlicensed practitioners into different arms of our multifaceted profession. Their activities not only dilute professional standards but also undermine the integrity of the services we provide, leaving clients exposed to poor advice and avoidable risks.
In addition, the prevailing high rate of inflation in the country has further compounded the situation. It has placed enormous pressure on the real estate sector, making rent payments and residential property ownership unattainable for many Nigerians. For a significant number of households, the dream of owning a home has been pushed further away, while tenants struggle to keep up with ever-rising rental demands.
What is your take on the adequacy of current regulations governing estate surveying and valuation in Nigeria?
There is the Estate Surveyors and Valuers (Registration, etc.) Act, CAP E13, Laws of the Federation of Nigeria 2007, which establishes and empowers the Estate Surveyors and Valuers Registration Board of Nigeria, which regulates estate surveying and valuation in Nigeria. The details of the enabling regulations are obvious and explicit.
How is the influx of unlicensed practitioners affecting the credibility and market share of certified estate surveyors and valuers?
Estate surveyors and valuers are not just real estate professionals; we are licensed experts whose work is guided by ethics, training, and credibility. As members of the Nigerian Institution of Estate Surveyors and Valuers, our identity is rooted in our motto, ‘Honesty and Devotion’. This slogan is more than words; it reflects the values that shape our service delivery to the public and to our clients.
One of our recognised functions is estate agency. However, it is important to stress that the general term “agent”, often used to describe unlicensed middlemen, cannot and should not be used to refer to estate surveyors and valuers. We are professionals distinct in training, regulated by law, and accountable to a governing body, which places us on a higher pedestal of credibility.
Unfortunately, the influx of unlicensed practitioners, commonly referred to as ‘quacks’, has continued to undermine the reputation of the profession. These individuals operate without proper training or authorisation, yet they parade themselves as real estate service providers. Their questionable practices, from fraudulent dealings to poorly executed transactions, have led to negative experiences for many unsuspecting clients. Sadly, the backlash from these unprofessional activities often falls on the entire real estate industry, giving the public a wrong impression.
What role should government agencies and professional bodies play in deepening compliance in the industry?
A lot of Nigerians have suffered losses due to their exposure to quacks, and this is one of the motives behind the initiative to set up the Lagos State Real Estate Regulatory Authority by the Lagos State Government. It is a laudable initiative, but the true and licensed professionals like the estate surveyors and valuers must play a leading role, as we already have an internal mechanism to ensure disciplinary compliance amongst our members, though these are rare exceptions. I believe there are ongoing discussions between LASRERA, ESVARBON and NIESV on how a collaboration can be had in Lagos State to minimise and eradicate fraudulent real estate transactions.
To what extent have inflation and rising interest rates impacted property valuation accuracy and demand in recent years?
In our valuation reports, the date of inspection of a property serves as the effective date of valuation for a property, but considering the uncertainty and spike in the prices of goods that was experienced in the country not long ago, this made property values go through various cycles of review vis-à-vis increases in value. Our colleagues and members have been able to adapt in their reporting regarding the accuracy of property values. Regarding demand, which I believe you are making reference to, property acquisitions due to rising prices, there was an initial lull, but the market has a way of balancing itself.
In your experience, how has the depreciation of the naira reshaped the property market and investor confidence?
Like I mentioned earlier, there was an initial lull in the property market. For a period, it seemed that investors who were genuinely interested in acquiring properties were constantly chasing the market, as prices kept escalating faster than their purchasing power could match. This situation created a sense of uncertainty and hesitation, with many prospective buyers adopting a wait-and-see approach.
However, Nigerians are naturally resilient, and that resilience has once again been demonstrated in the real estate sector. Despite the economic pressures, people have continued to adjust, innovate, and seek opportunities within the market. That tenacity has played a significant role in restoring confidence.
Today, the property market has largely stabilised. We are witnessing renewed activity and transactions across various property classes: residential, commercial, and mixed-use. From affordable housing to high-end developments, acquisitions are taking place, reflecting both investor confidence and the enduring demand for real estate as a store of value. This renewed vibrancy signals that, while challenges remain, the sector continues to adapt and remains one of the most reliable avenues for wealth creation and preservation in Nigeria.
What are the biggest valuation risks when dealing with distressed or abandoned properties?
When assessing properties, there are both unseen and visible factors that can significantly affect value, usability, and overall desirability.
Unseen factors include issues such as legal encumbrances, ownership disputes, and ongoing or potential litigation. A property may look attractive on the surface, but if the title is defective, if it is under government acquisition, or if there are unresolved claims and court actions tied to it, then its marketability and security of ownership are seriously compromised. These hidden issues can trap unsuspecting buyers in prolonged legal battles and financial loss.
On the other hand, visible factors are those that can be physically observed or identified through inspections. These include structural defects such as cracks in the foundation, leaking roofs, faulty electrical wiring, plumbing problems, or substandard finishing. While these may not always affect the legality of ownership, they directly impact habitability, safety, and the long-term maintenance costs for the buyer or investor.
A thorough due diligence process, covering both legal investigations and technical inspections, is therefore essential. This is where the expertise of estate surveyors and valuers comes in, ensuring that clients are protected from hidden risks while also identifying obvious defects that may devalue the property or require costly remediation.
Which types of properties are investors demanding in the current economic climate?
I can say for a fact, though, that the major changes I have witnessed by investors presently have been in the hospitality industry, with emphasis on short-let/Airbnb apartments. The booming creative industry and the dirty December phenomenon have created a wave of tourists and diaspora Nigerians seeking ‘home-like’ accommodation when travelling into the country. We equally have more urban, mobile and middle- to upper-income earners who do weekend getaways. This has spurred savvy developers to develop more 1–2-bedroom apartments to meet this niche.
How far behind or ahead is Nigeria in adopting digital valuation tools and proptech solutions compared to other markets?
We are still behind in the adoption of digital valuation tools and proptech solutions compared to some mature/advanced markets, but the awareness is there in Nigeria, and the adoption of these tools and solutions is gaining ground.
What challenges do you face in integrating modern technology into valuation and property management services?
The cost of some of this technology is a deterrent. Inconsistent and unreliable data make it hard for digital valuation tools or property management software to function effectively. Some professionals are resistant to change and like the traditional methods, but mindsets are changing now, though, due to the influx of smart devices and tools.
How can technology be used to reduce fraud and improve transparency in property transactions?
Access to a reliable database of blacklisted individuals with records of financial misdemeanours would be a valuable tool for property managers and landlords. Such a system would serve as a first layer of protection, enabling landlords to make more informed decisions about who they rent out apartments to and helping property managers mitigate risks associated with defaulting tenants. For instance, if a prospective tenant has a history of bounced cheques, unpaid rent, or previous evictions, this information would allow landlords to either decline the application or request stronger guarantees before proceeding.
In addition to this, some proptech companies in Lagos are already bridging this gap by offering background check services on prospective tenants. These checks often go beyond financial credibility to include employment verification, tenancy history, and even social credibility assessments.
The reports generated from such services give landlords clearer insights into the profiles of their prospective tenants and guide their decision-making, reducing the likelihood of disputes and defaults in the future.
The integration of such tools into the property management ecosystem not only protects landlords and investors but also professionalises the rental market. It encourages transparency, accountability, and trust between tenants and landlords, while discouraging fraudulent practices. Over time, with widespread adoption, this kind of system could significantly reduce the risks and inefficiencies that currently plague rental housing in Nigeria.
How does inadequate infrastructure, like poor roads, drainage, and electricity, affect the valuation and marketability of properties?
Infrastructure is quite key and can make or mar the value of any class of property. The same goes for the marketability. We were opportune once to buy a serviced plot of land in an upcoming estate in the Mowe axis for a client in the diaspora. Unfortunately, the major road access from the expressway to the estate was abandoned, and when the client instructed, we sold the plot. A few years later, it was a struggle to even get enquiries, not to mention to sell the plot. Nevertheless, there is still a glimmer of hope, as the federal and state governments are championing a lot of infrastructure projects and encouraging a number of Public-Private Partnerships.
What changes in land administration would make the biggest difference to the ease of doing business in the sector?
In advanced economies, the real estate sector is supported by a high level of automation and digital integration. Processes that traditionally take weeks or months in developing countries are completed in hours or even minutes. For instance, legal searches at the Lands Registry, submission and tracking of applications with the Lands Bureau, filing for building approvals, or obtaining critical land and property information can all be done remotely, saving investors and professionals valuable time and resources.
For practitioners in Nigeria, such efficiency would be transformative. The ability to seamlessly conduct legal searches online, process land-related applications without physical bottlenecks, and access verified data at the click of a button would drastically reduce delays, minimise corruption, and increase transparency. It would also improve the ease of doing business, encourage investor confidence, and enhance professional service delivery in the real estate sector.
Fortunately, Lagos State has shown dynamism in this regard. Its relevant parastatals and agencies have been proactive in addressing these challenges by gradually adopting digital solutions and automating key processes. From electronic filing systems to online platforms for property-related applications, these innovations signal progress toward a more modern, efficient, and transparent system. While there is still room for improvement, the commitment to automation in Lagos sets a model for other states to emulate and, if scaled nationwide, could revolutionise real estate practice in Nigeria.
How is Akinhanmi & Associates navigating the current challenges in Nigeria’s real estate and valuation industry, particularly issues like unlicensed practitioners and fluctuating market conditions?
Unfortunately, quackery is an epidemic that has crept into most professions in Nigeria and is not localised to Nigeria but is global. The only weapon is the enforcement of rules guiding the regulations of professional practices. At Akinhanmi & Associates, we try to stand out by making our service delivery to our clients exceptional and equally meeting fiscal compliance regulations. That way we stand out from unlicensed practitioners who, in the first place, aren’t trained, are incompetent and obviously don’t comply with fiscal regulations. Regarding fluctuating market conditions, as a firm, we have seen it all and have navigated the fluctuating market conditions by being strong-minded and proactive.
How does Akinhanmi & Associates promote the use of professional estate surveyors and valuers to prevent losses and ensure transparency in property transactions?
We have always had collaborations with our fellow registered estate surveying and valuation firms in new markets and endeavours because, as the popular mantra says, ‘we are stronger together rather than divided’. There would be a boomerang effect if we gave a referral or lead that made a fellow firm or a client suffer any loss. As professionals, we do a lot of paperwork and documentation, and keeping records ensures transparency and accountability to clients.
CREDITS
Josephine, a correspondent with The PUNCH has over two years experience covering the building industry and the personal finance ecosystem
