The Nuances of Language in Real Estate Regulation: A Call for Measured Communication in Lagos
The Lagos State Government’s recent classification of over 170 estates as “illegal developments” has ignited a debate within the real estate sector. While the government’s intention to enforce planning regulations is understandable, the strong language used has raised concerns about its potential negative impact on the market. Akintoye Adeoye, National President of the Real Estate Developers Association of Nigeria (REDAN), has cautioned against the use of the term “illegal,” arguing that it could unnecessarily alarm investors and create instability in the market. He suggests that a more nuanced approach, focusing on the need for “regularization” of layout plan approvals, would be more effective and less disruptive.
Adeoye’s concern stems from the potential repercussions of labeling estates as “illegal.” This terminology, he argues, not only affects the developers but also impacts property owners and potential subscribers. The negative connotation associated with “illegal” can tarnish the reputation of these estates, making them less attractive to investors. This could lead to a decline in property values and create a chilling effect on future investments in the Lagos real estate market. Furthermore, the use of such a strong term can generate anxiety and fear among existing property owners, who may worry about the legal status of their investments. This anxiety can further destabilize the market and erode confidence in the real estate sector.
Instead of using the term “illegal,” Adeoye proposes a more conciliatory approach. He suggests that the government should frame the issue as one of “regularization,” encouraging developers to obtain the necessary layout plan approvals. This approach, he believes, would be more effective in achieving the government’s objectives without causing unnecessary alarm. By focusing on the need for compliance rather than resorting to accusatory language, the government can create a more collaborative environment and encourage developers to rectify any shortcomings in their planning documentation. This collaborative approach would also allow developers who already possess the necessary approvals to demonstrate their compliance, avoiding unnecessary negative publicity.
The controversy underscores the importance of clear and measured communication in government pronouncements, particularly in sensitive sectors like real estate. The choice of words can significantly impact market sentiment and investor confidence. While the government has a legitimate role to play in enforcing planning regulations, it is crucial to strike a balance between enforcing rules and fostering a stable and predictable investment environment. Using inflammatory language can undermine this balance and create unnecessary uncertainty in the market.
Adeoye emphasizes the strong existing collaboration between REDAN and the Lagos State Government, highlighting their joint efforts in training and certification of members. He acknowledges the government’s positive contributions to the real estate sector and underscores the importance of maintaining a productive working relationship. However, he stresses the need for the government to be mindful of the language it uses in public pronouncements, particularly when dealing with complex issues like planning regulations. He argues that a more measured and collaborative approach would be more effective in achieving the desired outcomes without jeopardizing market stability.
The situation in Lagos highlights a broader challenge in regulating emerging markets. Balancing the need for enforcement with the goal of fostering growth requires a nuanced approach. Overly aggressive enforcement can stifle development and discourage investment, while lax regulation can lead to uncontrolled growth and potential risks. Finding the right balance requires careful consideration of the specific context, including the level of market maturity, the capacity of regulatory bodies, and the potential impact on investor confidence. In the case of Lagos, a more collaborative approach, focusing on regularization and clear communication, could be a more effective way to achieve the government’s planning objectives while minimizing disruption to the real estate market. This approach would not only address the immediate issue of layout plan approvals but also contribute to building a more stable and predictable investment environment in the long run.
