Problems of existent estate development harmonizing to Omole ( 2001 ) are ; 1. land acquisition jobs ; The full existent estate development takes topographic point on land. purchase of land from persons involves extortionate monetary value due to the activities of land speculators. The land policy was promulgated in 1978 to work out this jobs but it failed excessively. Ironically. the land usage act that was enacted to enable Nigeria hold entree to land. hinders belongings developers from geting land for existent estate development. Rigmarole procedures involved in acquisition of land. cumbersome and dearly-won processs involved in treating certification of tenancy and the subdivision 34 ( 8 ) of the land usage act allows the maximal allotment of half an hectare of land to developers affects the existent estate developers in the engagement of existent estate development in Nigeria. 2. Problem of finance ; finance is really of import in existent estate development because of immense capital outlay it involves. Acquisition of land purchasing of constructing stuff. payment of labor and so on requires finance.
In most state of affairs finance is non adequately provided for the existent estate developers. this could be due to the short- term loan that is being granted to the existent estate developers. The addition in the pecuniary policy rate to 9. 25 % besides consequence to the high involvement rate on mortgage loan of the fiscal establishment. Other rigorous status of the fiscal establishments scare existent estate developers off from obtaining loan from them. This affect the supply of existent estate in the state. 3. Inflation ; The rate of rising prices in the state today is rather alarming. Co-peratives which assist its members in the development of existent estate through part is hampered by this jobs. On salvaging their money in a bank history. they would detect that the money would non be plenty for development as ab initio budgeted due to rising prices. This would do them non to realize their dreams of existent estate development.
4. High cost of edifice stuffs ; the like in the monetary value of constructing stuff in the state hinders existent estate developers from take parting efficaciously in the existent estate development in Nigeria. This is due to the know aparting importing of edifice stuffs into the state. Harmonizing to the president of the Nigeria establishment of estate surveyors and valuers. Mr. Bode Adediji ( Thisday Newspaper. August 23 ) “uncontrollable trust on imported edifice stuffs affects development in Nigeria. The prostration of once booming constructing material sub-section and the absence of new constructing stuff mills contribute to this. Besides the low exchange rate of our currency contributes to high cost constructing stuff in the state. Our currency had greatly dedued compared to some currencies like us dollar. Therefore edifice stuffs imported into the state is more expensive when the monetary value is converted to the value of the local currency.
5. Lack of basic substructure ; hit-or-miss status of basic substructure in the state constraints the existent estate developers from take parting actively in development in Nigeria. The basic infrastructural installations such as pipe borne H2O. electricity. entree route which attract people to an country are non adequately supply in the buidable site. This would do the developers non to implement their thought of development thereby impacting existent estate development in that country. 6. Dearth of edifice professions ; constructing professionals such as estate surveyor and valuer. town contrivers architect. measure surveyor. and so on are really important in the building of existent estate development. In most countries of the state. particularly the rural countries these professionals are missing. The few 1s available take the advantages their unavailablilty and charge higher on their service. this extra cost consequence to the addition in the concluding cost of edifice. And such discourages existent estate developers.
27. THE EFFECT OF THE ABOVE PROBLEMS ON REEAL EATATE DEVELOPMENT
1 deficit of adjustment ; lodging is one of the basic human demands. the jobs and chances of existent estate development in the state has led to shortage of adjustment in such a manner that land and the resources that were say to be used for the development of existent estate were held and delayed during acquisition procedure thereby taking to shortage of houses for adjustment.
Excess Demand OF ACCOMMODATION OVER SUPPLY
In transporting out this survey. it has been discovered that the billboard of land by land speculators had led to extra demand of adjustment over supply as a consequence of deficit in the supply of land for the development of existent estate belongings in the survey country Nigeria HIGH RENT: As a consequence of deficit in the supply of land for the development of existent estate. the already developed belongingss monetary values and rents tends to lift hiher due to the deficient land for development. ILLEGAL DEVELOPMENT: Due to the extra demand of adjustment and the deficit in the supply of houses in some countries that was non allowed for the development of residential belongingss by the authorities and this resulted to illegal development on drainage channels. high tenseness wire. and passages etc. this leads to the formation of slums.