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Taxes stifle the Ebonyi housing market

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By Nicole

The real estate in Ebonyi has declined due to high taxes on the properties.

Despite the Ebonyi government’s increasing investments in infrastructure, the state’s real estate market has tanked as a result of hefty property taxes. Real estate practitioners claimed that the taxes have reduced the supply of houses and hampered the property market’s growth, which has been just five to ten percent over the past five years. The source discovered that many taxes have led to investor apathy, particularly in the residential and commercial sectors, since the costs of doing business have increased and some businesses have been compelled to relocate to other states as a result of the taxes.

With inflation, rising interest rates, higher building material costs, a shortage of trained artisans, insufficient long-term funding, and inconsistent government policies that affect the real estate market, the Nigerian economy has continued to face difficult times. Taxes have discouraged investment in the real estate market, which have resulted in increasing prices for both new homes and rentals in urban areas. The demand for residential units has increased significantly in the real estate market, but new project construction has decreased significantly.

A two-bedroom bungalow is set to amount to N8 million.

According to statistics, a two-bedroom home listed for sale costs N8 million, while a three-bedroom bungalow costs roughly N11 million. Depending on the amount of land space, three-bedroom duplexes and four-bedroom homes cost N30 million and N40 million, respectively. In the rental market, one-bedroom apartments and terraces are rare, while two-bedroom apartments cost between N180,000 and N240,000, three-bedroom apartments cost between N350,000 and N500,00, and duplexes cost between N600,000 and N1.5million. Until date, the costs have been as follows: duplexes cost between N250,000 and N450,000; one-bedroom apartments cost between N100,000 and N120,000; two-bedroom flats cost between N130,000 and N150,000; three-bedroom flats cost between N180,000 and N200,000.

Multiple taxes, according to industry experts, have threatened property development, consulting, and administration and necessitated immediate action since they are limiting investment in the area and suffocating industry participants. According to Henry Odigwe, Chairman of the NIESV’s Ebonyi State branch, the government has been indirectly limiting the growth of the real estate industry, which is why it is not expanding like it is in other large cities. Many people’s properties have been forcibly taken by the government, with very little (much less than their worth) or no recompense offered.

Residential real estate in higher demand than commercial buildings.

Despite the circumstances, some developers continue to build, however the rental and capital values of properties are relatively low when compared to other states. In the state, demand for residential real estate is higher than that for commercial buildings, just as demand for apartments is higher than that for commercial premises. The majority of potential investors’ judgments, according to Mrs. Anthonia Akani, a former chairman of the NIESV’s Ebonyi State section, are influenced by the community Attorneys. Prospective real estate investors are put off by the situation in which if you want to develop or even make basic repairs to your property, you will be required to pay absurd amounts under the guise of a community development fee or whatever name they gave it, she said.

She believes that there is a lot of opportunity for real estate investors in the suburbs. A number of the regions, including Obubura, Nwaezenyi, Azuebonyi, Iboko, and portions of Ezza, Ikwo, Agbaja, and Nwofe Down Ogbaga Road, have not yet been fully developed. Real estate investors might consider these places with good road networks. She claimed that the majority of the state’s or city’s land is still not registered, making it difficult to conveniently do title searches on them.

The government should create an atmosphere favorable for investors.

Given the importance of land title registration for all real estate investors, she advocated for the government to create an atmosphere that is favorable to investors. Austin Otegbelu, a professor of estate management and environmental valuation at the University of Lagos, claimed that the major cities of Abakaliki and Afikpo lack a solid economic foundation that would fuel the real estate market. He added that insufficient compensation for seized land cannot elevate the people out of poverty but rather impoverishes them. He claimed that a strong economic base would stimulate effective demand and improve the real estate market. He believed that the tax code should also be friendly to both investors and citizens. To draw in investment, the government should be prepared to contribute its own equity.


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jdpumping
jdpumping
1 year ago

Housing scheme has always been the problem of many government in Nigeria they have not take charge in order to help the citizenry that’s why the issue if the real estate has been so prevalent because they so things as they like and out prices on houses as they so seen fit because they can’t be controlled.

Abusi
Abusi
1 year ago

When taxes for real estates is too much, there will subsequently be an influx in the price of houses. The real estate sector is not well controlled by the government. People should be given opportunity to buy houses by mortgage.

Haykaylyon26
Haykaylyon26
1 year ago

The tax on real estate is too high it should be control well, house are just be price anyhow how will people benefit from something that is high the government need to see this out and be control well so the price can be normal

Hassan Isa
Hassan Isa
1 year ago

The Ebonyi state government has been making increased investments in the state’s infrastructure; yet, the real estate market in the state has collapsed as a direct result of the high property taxes.

Chibuzor
Chibuzor
1 year ago

As a result of the rise in the costs of doing business and the fact that some companies have been forced to move their operations to other states as a direct result of the taxes, the

Nwachukwu Kingsley
Nwachukwu Kingsley
1 year ago

Since the cost of doing business has increased and some enterprises have been driven to migrate to other states due to the taxes, there has been a general lack of interest among investors, notably in the residential and commercial sectors.

Adesanyaj72
Adesanyaj72
1 year ago

On the real estate market, there has been a substantial rise in the demand for residential units, but the number of new projects under development has fallen by a large amount.

Kazeem1
Kazeem1
1 year ago

Because the government has been inadvertently impeding the growth of the real estate industry, that sector is not expanding to the same extent as it is in other major cities.

Godsewill Ifeanyi
Godsewill Ifeanyi
1 year ago

since the price of doing business has gone up and some companies have been forced to leave the state because of the taxes they pay there.

Taiwoo
Taiwoo
1 year ago

Prospective real estate investors are discouraged due to the fact that if you want to develop or even just make basic repairs to your property, it will cost a significant amount of money.

Tolaniiii
Tolaniiii
1 year ago

The real estate market is not developing to the same level as it is in other large cities because the government has been unintentionally stifling it.

Christiana
Christiana
1 year ago

due of the high tax burden, the cost of doing business has increased, and some enterprises have been driven out of the state.

Ultra0711
Ultra0711
1 year ago

Houses are already priced above most people’s means, so it’s unclear how the additional burden of a high property tax could possibly benefit anyone. The government should take steps to bring housing costs back down to earth.

Iyanu12345ogg
Iyanu12345ogg
1 year ago

The government should take charge and render to possible helps to the citizenry… failure to do so, the issue of the real estate would still be dominant!

DimOla
DimOla
1 year ago

Most of our governors believe that the best way to generate revenue is solely by taxes.For more investors to come into your state you need to a conducive atmosphere with low taxes. What Ebonyi state has embark on this tax , I think it is a result of ill-advised.

theApr
theApr
1 year ago

Real estate professionals alleged that the taxes had slowed the property market’s expansion, which has been just five to ten percent during the previous five years, and limited the supply of homes.

Tonerol10
Tonerol10
1 year ago

Taxes stifle the Ebonyi housing market. Everything is a problem in this so called country in Nigeria. Government are so selfish, they can not fix on single problem in Nigeria, not even tax problem in Nigeria

SarahDiv
SarahDiv
1 year ago

I don’t why government believe so much in taxes. Tax is not only the way that can be used to develop a state or country. Other means can be exploited to achieve that. If the insistence on high taxing rate still persist in Ebonyi state be sure that there will less investors within the State.

Adeolastan
Adeolastan
1 year ago

This policy from the Ebonyi government will not help the government because this will not encourage investors to invest in the economy.

Remi1
Remi1
1 year ago

Taxes have stifled real estate investment, which has led to rising costs for both new homes and rentals in urban areas. This won’t favor the government in the long run