Environment

HDAN condemns unethical practices in real estate sector

AnyFans 2025-09-16

By Dayo Ayeyemi

The Housing Development Advocacy Network (HDAN) has condemned unethical practices in the real estate sector, calling on stakeholders to come together and take a firm stand against corrupt practices that continue to undermine the sector.

In a statement released by its Executive Director, Festus Adebayo, HDAN stated that unethical operators pose a serious threat to sustainable housing delivery, investor confidence, and the protection of homebuyers across the country.

“Corruption in the housing industry does not only affect developers and investors, it destabilises families and communities who lose their hard-earned savings to fraudulent schemes,” Adebayo said, adding: “We cannot continue to watch these bad actors damage the credibility of our sector. It is time for collective action,” he said.

The HDAN’s executive director called on professional associations, government regulators, private developers, and civil society to join hands in flushing out unscrupulous operators.

The group also urged the government to strengthen regulatory frameworks and enforce strict penalties on violators.

The advocacy network highlighted that a united front will not only protect home seekers but also create an enabling environment for genuine investors and developers to thrive, thereby addressing Nigeria’s urgent housing deficit.

“As stakeholders, we must prioritise integrity, transparency, and accountability. Together, we can restore trust and reposition Nigeria’s housing industry as a driver of sustainable development and economic growth,” the group said in a statement.

HDAN pledged to continue its advocacy, public enlightenment campaigns, and collaboration with regulatory agencies to expose fraudulent practices and protect Nigerians seeking affordable housing solutions.

Meanwhile, the group has also raised strong concerns over the rising cost of rent and agency fees in the Federal Capital Territory (FCT), urging the National Assembly to intervene with urgent legislation to address the growing crisis.

According to HDAN, the FCT is experiencing a worsening housing affordability challenge that disproportionately affects civil servants, artisans, and both low and middle-income earners.

Driven by inflation, population growth, and rapid urbanization, the group noted that housing demand has far outpaced supply, resulting in exorbitant rent levels.

Currently, a self-contained apartment in Abuja costs as much as N1 million annually, while a three-bedroom flat attracts as high as N3.5 million.

HDAN’s executive director, Festus Adebayo, said that beyond high rents, tenants are forced to bear additional burdens such as agency fees ranging from 20 to 25 percent of annual rent, caution fees, and maintenance charges from quacks.

“These costs consume a significant share of household incomes, forcing many residents to relocate to distant satellite towns where cheaper accommodation is available,” he said

The consequence, he said, was the associated longer daily commutes, reduced productivity, mounting financial strain, and a decline in overall quality of life.

The group further warned that the absence of rent control mechanisms and effective regulatory oversight has allowed for arbitrary rent hikes and exploitative practices in the property market, worsening inequality and fueling social challenges such as homelessness and the expansion of informal settlements.

To address the crisis, HDAN called on the National Assembly to enact a Rent and Agency Control Bill, while also mandating the Federal Government through the Ministry of Housing and Urban Development to prioritize the development of low-cost housing estates for civil servants and artisans.

The organisation also recommended the establishment of an FCT Housing Authority to regulate rent increases and curb excessive agency charges, as well as periodic oversight of housing policies by the House Committee on Housing and Habitat.

In addition, it urged lawmakers to work with the executive arm of government to address the rising cost of building materials, which significantly drives up overall housing expenses.

Adebayo stressed that deliberate action was urgently required to prevent Abuja’s housing market from becoming completely unsustainable.

He described affordable housing as both an economic necessity and a matter of social justice, urging lawmakers to prioritize the issue in order to protect the most vulnerable residents of the FCT.

HDAN is a research-driven, non-profit, volunteer, and non-governmental organisation dedicated to promoting affordable housing across Africa.

With a membership of over 5,000 professionals spanning various disciplines within the housing and construction industry, HDAN strives to advance sustainable housing solutions throughout the continent.