By: Tijani Salako.

An estate valuer has expressed concern that inaccurate and duplicate property data are undermining investor confidence and affecting the mortgage market in Nigeria’s real estate sector citing that poor data integrity remains one of the biggest obstacles that threatens both local and foreign investment.

Speaking during an interaction with Standard Times on the numerous challenges confronting the industry, FNIVS Olusanjo Fawole noted that where you have inaccurate data, it becomes a major problem because investors cannot do their calculations correctly which often creates confusion and breach of trust.
The inability to verify the authenticity and value of listed properties discourages potential investors who rely on data to make informed business decisions making both foreign and local investors skeptical about entering the market

Fawole noted that the problem also extends to the mortgage industry, where reliable data and valuations are essential for financial institutions to assess loan applications. Essentially the mortgage institutions rely heavily on accurate valuation, but when data is inaccurate, something will go wrong with the valuation, and ultimately with the loan facility advanced to investors.

He emphasised that inaccurate data can lead to overvaluation or undervaluation of properties, affecting both banks and borrowers. “If a property’s market value is wrongly stated, it affects how much a bank can lend. The entire mortgage process depends on credible information,” he said.

The estate valuer further added that Ubosi Eleh +Co and other leading property companies have begun efforts to change the narrative by publishing verified real estate data through periodic reports. “We started our Real Estate Report about eight years ago, using actual transaction figures, as other reputable firms like Metro and Notcall are also doing the same, which helps improve transparency.”

Disclosing that professional body like ESVBON and other valuers has taken steps to harmonise industry reports to ensure accuracy and consistency. “Even when two reports differ slightly, the margin of error should not exceed five percent, anything beyond that shows inconsistency.”

However, he warned that unregulated agents continue to distort the market with false listings and unreliable figures, posing a risk to genuine investors and lenders alike. For investors and mortgage institutions to thrive, we need transparent data, accurate valuation, and tighter regulation, with that only the industry can rebuild confidence in the Nigerian real estate market.”