REDAN Urges Developers to End Silo Operations, Embrace Collaboration

REDAN calls for stronger collaboration among developers

The Real Estate Developers Association of Nigeria (REDAN) has urged property developers across the country to move away from isolated operations and strengthen collaboration to improve the performance of the real estate industry.

REDAN President, Oba Adeoye, made the call at a one-day summit for real estate developers in the North-Central Zone in Abuja. The summit, themed “Collaborate to Consolidate”, focused on improving cooperation and knowledge-sharing among developers and strengthening the association's ability to address industry challenges.

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REDAN Calls for Greater Knowledge Sharing

Adeoye said REDAN could become a stronger institution if its national leadership, zones and state chapters worked more closely together.

He said developers already possess expertise across several areas, including land acquisition, construction, project management, finance, planning, sales, affordable housing, government relations, community engagement and technology.

According to him, the challenge is not necessarily a lack of professional expertise within the industry, but the inability to effectively connect and use the knowledge available among members.

He urged developers to create stronger platforms for exchanging information, experiences and solutions so that successful approaches in one part of the country can be replicated elsewhere.

Developers Urged to Share Solutions to Land Challenges

The REDAN president particularly highlighted land acquisition as an area where greater cooperation could benefit developers.

He said solutions developed by one state chapter should be shared with other chapters facing similar challenges rather than remaining within individual jurisdictions.

The approach, according to Adeoye, would enable developers to collectively address common problems and strengthen REDAN's advocacy when engaging with governments and other stakeholders.

Better information flow between state chapters, zones and national leadership could also allow the association to identify recurring problems and develop industry-wide responses.

Collaboration Could Reduce Development Costs

Adeoye also pointed to the potential financial benefits of collective action.

He said developers could achieve better prices when they negotiate or purchase materials and other resources collectively because larger orders can create economies of scale.

He cited a vehicle procurement arrangement facilitated by REDAN's North-Central Zone as an example, arguing that a larger nationwide transaction could potentially secure greater discounts than purchases made by individual developers or smaller groups.

The principle could also apply to other areas of property development where developers face high input and operating costs.

Rising Cement and Iron Rod Prices Raise Concern

At the summit, REDAN National Vice President for the North-Central Zone, Osilama Osilama, called on the Federal Government to take measures to reduce the cost of cement and iron rods.

He said the rising prices of the two materials were making it increasingly difficult for developers to provide affordable housing.

Osilama noted that cement and reinforcement steel are essential inputs for housing construction but are also heavily used in road and infrastructure projects, creating additional demand for the materials.

REDAN Proposes More Competition in Building Materials

Osilama recommended measures aimed at increasing competition and supply in the cement and iron rod markets.

Among the proposals was the liberalisation of the markets through additional import licences and the entry of new manufacturers.

He also suggested that government could consider requiring road contractors to use imported materials or introducing targeted subsidies for critical housing inputs.

The REDAN official further called for the removal of taxes on cement and iron rods as a way of reducing construction costs.

High Construction Costs Threaten Affordable Housing

The concerns raised at the summit highlight the pressure facing developers attempting to deliver homes at prices accessible to ordinary Nigerians.

Construction costs are influenced by several factors, including building materials, land, labour, transportation, finance and infrastructure. When the prices of core materials increase, developers may either increase selling prices, reduce project margins or delay new developments.

For affordable housing projects, where margins are generally narrower, sustained increases in construction inputs can make projects more difficult to finance and deliver.

Reducing the cost of key materials could therefore improve the feasibility of some housing developments, although material prices are only one component of the overall cost of delivering a home.

Real Estate Partnerships Can Unlock More Capital

National President and Chairman of Council of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Bature Muhammad, also encouraged developers and investors to structure partnerships properly.

Represented at the summit by Ebuka Ani, Muhammad said successful real estate development requires a combination of land, capital, expertise, technology and market knowledge.

He said properly structured partnerships could help developers unlock land, mobilise capital, share risks and improve project delivery.

The approach could be particularly relevant to Nigeria's housing market, where developers often face difficulties securing sufficient capital for large-scale projects.

Investors Urged to Conduct Proper Due Diligence

Muhammad also advised investors entering property partnerships to carry out appropriate due diligence before committing funds.

He urged parties to clearly define their contributions, responsibilities, ownership or sharing ratios and expected returns before projects begin.

Landowners, he said, could contribute their land as equity, while investors should verify property titles, valuations, development approvals and other potential risks.

Clear agreements and proper documentation could help reduce disputes and provide greater certainty for all parties involved.

Collaboration Could Strengthen Housing Delivery

The call for greater collaboration comes at a time when Nigeria requires increased housing supply to meet growing demand.

Stronger partnerships between developers, landowners, financial institutions, government agencies and investors could help address some of the constraints affecting housing delivery.

Developers could combine land and capital, financial institutions could provide structured funding, while government could support projects through infrastructure, planning approvals and appropriate policy measures.

Such collaboration would not eliminate the country's housing challenges, but it could provide a more coordinated approach to delivering projects at scale.

Developers Face Multiple Industry Challenges

The issues discussed at the Abuja summit demonstrate that Nigeria's property sector faces challenges extending beyond the availability of land.

Developers must contend with construction costs, access to finance, land documentation, development approvals, infrastructure deficits and market affordability.

Addressing these challenges will require participation from both the public and private sectors.

REDAN's emphasis on collaboration reflects the need for developers to pool knowledge and resources while also strengthening their engagement with government and other institutions.

Outlook

REDAN's call for developers to abandon silo operations highlights the importance of collaboration in addressing the structural challenges facing Nigeria's real estate industry.

Greater cooperation could improve knowledge-sharing, strengthen negotiations, reduce some project costs and create opportunities for partnerships involving landowners, investors and developers.

At the same time, the association's call for government action on cement and iron rod prices points to the need for broader measures to reduce construction costs.

For Nigeria's housing market, the combination of stronger industry collaboration, better-structured investment partnerships and policies that improve the affordability of construction inputs could help create conditions for increased housing delivery.

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