Banks’ reluctance to give loans affects real estate business

By Damilola Kushimo

Estate Rents and Commission Agents Association of Nigeria (ERCAAN) has disclosed that the reluctance of the banks to give loans to investors has continued to affect the real estate business.

The association also noted that closure of courts is another factor affecting the sector as many land-tenant cases are still pending in the courts of law, disallowing vacancies for rents which are the main business of the association.

Speaking with ECHONEWS, the ERCAAN Chairman, Okota-Isolo Branch, Mr. Olugbemiro Akinlosotu explained that since investors in real estate could no more get lloans from banks, members of the association have been cut out of the business as building of new estates and houses have been put on hold.

He added that defaulting tenants could not be evicted by landlords without court order to create new vacancies for rent and that such tenants continue to live in their apartments without payment since their cases are pending in court.

He said: “Resuming back to business after the lockdown hasn’t been as we expected. Banks are delaying loan processes and disbursement to investors. Investors are being skeptical and would want all this to be solved. Courts remain closed for hearing; everything hasn’t been as it ought to be.

“Although some prospective clients are making enquires by faith, to a great extent, it seems not until the pandemic is over before normalcy could be sustainably restored, and that can be facilitated only by God’s Divine intervention.

He urged the residents to comply if the on-going lockdown was extended due to the alarming increase in number of positive cases, adding that the virus can fade away within a period of 14 days if we all observe strict isolation.