•As sector’s contribution to GDP rises by 10%
By Maduka Nweke, [email protected]
The Managing Director of Legrande Properties Development Company Ltd, Mr. Babajide Durojaiye, has said that the credit investment of N10.08 trillion in the real estate of 2010 has remained the highest in the sector.
According to him, this amount, equals 9.54 per cent of the total credit to the private sector which is the highest between 2007 and 2022.
Speaking during the Property and Environmental Writers Association of Nigeria (PEWAN) Forum held in Lagos recently, Durojaiye said, “Overall credit to the sector has fluctuated over the years going up in one year and down in the other. It does not respond to changes in total credit to the private sector as total credit to the private sector increased from 2011 to 2017. “Analysis has shown that increased investment in the real estate sector will not only reduce the housing deficit in the country, it will also contribute significantly to the country’s GDP”.
The Legrande MD/CEO further stated that dataphyte analysis shows that the sector’s contribution to the country’s GDP has been above 10 per cent for the last 8 years. “Moreso, its contribution to GDP has increased for some years. There has been a 17.3 per cent increase in the sectoral contribution in 2022 over 2015.
Over the period, the least contribution was 11.3 per cent recorded in 2017. Its contribution increased in 2021, when it contributed 14.9 per cent. “This implies that more social investment in the housing sector would not only contribute more to the country’s GDP but reduce the housing deficits in the country,” he stated.
While fielding questions on how the company is solving the problems of housing deficits, the Legrande boss explained that the Company is building habitable estates within its locality for the benefit of all subscribers and seeking ways wherein subscribers would be able to purchase these units without breaking the bank. “Some of our completed projects includes,. “The Courtland Villa Estate which is made up of 120 units of 4 bedroom maisonnettes with BQ’s, situated along Platinum Way, Igbokusu, off Lekki Epe Expressway, Jakande, Eti Osa Local Government Area, Lagos and others,”he noted.
While explaining payment plans for any of the company’s estates, Durojaiye said, “with regards to payment, it is broken into milestones and we have different packages for different subscribers. For outright purchase which includes payment of entire purchase price at the beginning of the transaction, milestone payment without the usage of National Housing Fund (NHF), includes, a 30 per cent of the purchase price to be paid within seven days upon acceptance of the offer letter. A 30 per cent upon completion of the first floorslab, a 20 per cent upon completion of the third floorslab, a 10 per cent upon commencement of internal finishes and 10 per cent upon completion but before handing over of the units,”Durojaiye said.
He said that with regards to the NHF payment plan, “the following are the requisite milestone payments required; 30 per cent of the purchase price to be paid within 7 days upon acceptance of the offer letter., 20 per cent of the purchase price upon completion of the first-floorslab. FMBN would issue N15,000,000 when the purchaser is purchasing three-bedroomflat to us on your behalf, N4,000,000 only to be paid upon completion of the third-floor slab, N4,000,000 to be paid upon completion but before handing over of the units. If a subscriber is purchasing two- b e d r o o m flat, which is N36,000,000 only, thefollowing is the requisite milestone payment, 20 per cent of the purchase price being N7,200,000 only to be paid within 7days from the acceptance of the offer letter, 20 per cent of the offer price being N7,200,000 to be paid upon completion ofthe first-floorslab. N14,000,000 to be paid by FMBN to us on your behalf for the said unit, N3,800,000 only to be paid upon completion of the third floor slab, N3,800,000 only to be paid upon completion of the unit but before handingover.
Legrande will help the subscriber secure the said N15,000,000 or N14,000,000 loan from the Federal Mortgage Bank of Nigeria provided the subscriber is a contributor to the National Housing Fund Scheme, and the subscriber will only be expected to start repaying the loan sum to FMBN after the unit has been completed and handed over to the subscriber. However, the title document would be issued to FMBN in trust for the repayment of the loan and upon completion of the payment of the loan sum which takes 30 years depending on the subscriber’s current age, the title document will be handed over totehsubscriber by FMBN. Kindly note that Legrande already has a primary mortgage bankthat they are working with which is AG Mortgage Bank. It is through this bank that all subscribers’ documents would be submitted to FMBN on their (subscribers’) behalffor the processing of the loan,”he explained.