The Nigerian Mortgage Refinance Company (NMRC) and developers of Lekki Gardens have thrown their weight behind the takeoff of Roland Igbinoba House Price Index (RI), the first in the country.
Executive Director of NMRC, Mr.Kehinde Ogundimu, who represented his managing director, gave insight into the usefulness of a house price index in Lagos.
He pointed out that absence of useful data had been a major challenge to government, home seekers and investors in the drive to make decision about housing market.
He lauded President of Pison Housing Company, Mr Roland Igbinoba, for coming up with a house price index, giving assurance that NMRC would like to partner with him in the exercise.
He described the house index as a useful tool for determining demography, prediction and trends in house prices. “It is going to be a good analytical tool, so NMRC is delighted. For investors, it can be used to track investments,” he said.
CEO of Lekki Gardens, Mr. Richard Nyong, said that his firm was revisiting its mandate to close the housing gap of 17 million units, adding that Roland’s house price index would be a useful tool for decision making among investors, house buyers and developers.
Igbinoba noted that in the last five years, price of houses had dropped between 40 per cent and 65 per cent from key market place such as Lekki, Ajah and Games Village in Abuja.
He said that Roland House Price Index (RI) would be connecting one of the building blocks of real estate to help people understand processes around towns before taking decision.
In a market system, Igbinoba explained that the price index could reflect both its relative costs of production and relative utilities to purchasers, whether the latter intended to use them for residential or commercial purposes.
He said: “A House Price Index (HPI) is a tool that measures changes in single family home prices across designated market. It reflects areas where some values are increasing or decreasing.