Guardian

Some months ago,  International Real Estate Federation( FIABCI), a worldwide network whose membership is open to all professionals involved in the property industry elected a new president to paddle the ship of the revered group for three years, out of which he had spent almost a year, as president-elect, and in few days, Mr. Flavio Gonzaga Bellegarde Nunes, a Brazilian, who has practiced law since 1974 in the areas of real estate, corporate and environment, will be taking off as the president of the federation.  As part of the strategies to grow membership in the African continent, Nunes visited Nigeria recently, where he spoke on his mandate, programmes and what Nigeria stands to gain from the body.  In this interview with The Guardian’s EMMANUEL BADEJO, FIABCI’s president, also said that Nigeria can surmount its housing challenge by adopting Brazil’s housing model. Excerpts:

CONGRATULATIONS on your election as the president-elect of FIABCI international.  But you are taking off this year after months on the saddle, can you explain what this means?

I have the honour to be elected as president last year and according to our statutes, I will be taking off this year. The new president must have been elected one year before taking off.  Within that one year as president-elect, he or she has the opportunity to interact with the out-going president. One year after, the president-elect takes his/her off, commencing his/her business, succeeding the erstwhile president for one year.  One year after, the president who becomes the first president will transmit his position to another president-elect, though the president now will be saddled with responsibility in FIABCI for one year more.  Going by our procedure, every president of FIABCI has responsibility for three years with the organisation -one, as president-elect, the second year as president, and the third year as first president. I am finishing my president-elect tenure in few days, precisely, in late May.

Nigeria is probably the only country in Africa with great interest in the global body. What can we say are the reasons why Africa does not have strong representation in FIABCI?

Considering Nigeria as example, she is quite an old chapter of FIABCI, though this is not the case with other countries in Africa.  But we are hopeful that in view of the booming economy, Africa will soon become strong in this world organisation. In Africa, there are excellent challenges coupled with large-scale infrastructural development, so we are hopeful that very, very soon, Africa will become a force within FIABCI.

The Federation has been in existence for several decades. Many people are still at loss on the objectives of FIABCI?

FIABCI is an organisation that focuses on several issues.  Networking is one major target of FIABCI.  Generation of business is another target. Exchange of knowledge is another and boosting the professionals’ skill are also areas we pay attention to. Improving the practice of real estate profession is another objective of the group.  Besides these, FIABCI is listed as an NGO with the ECOSOC that is Economic and Social Commission of the United Nations. It was listed in ECOSOC in early 50s. Taking its standing and relationship with ECOSOC; FIABCI is deeply informed in social housing.  So, housing for low-income families, is that kind of project that goes in line with FIABCI’s skill, considering that it is an organisation of real estate professionals.

Several years ago, a foundation was devoted for social housing project.  It is Global Housing Foundation (GHF), founded by one of our most important member, who unfortunately is late now. This project has been very active in provision of social housing for low-income families.  For instance in Walter Maler, the foundation was involved in the provision of social housing with the United Nation.  Besides that, we’ve seen that there is a wide gap of homes for low-income families.

In Africa, particularly, in Nigeria, I learnt that there is a debt of 16 million houses.  This is a big challenge and FIABCI can get involved, trying to work with the United Nations and the government, with a view to seeking lasting solution. Yes, FIABCI is not a financial institution but it’s an organisation made up of real estate professionals that can bring good ideas who can put in context partners and players in the industry.  FIABCI is unique in the sense that it is spread through the globe.  There are representations in more than 40 countries and there are members in countries where we do not have representation.  We can use our peculiarity and experience in the real estate segment to proffer solution to the housing problems in Nigeria.

With a deficit of 16 million housing units, we expect your kind of intervention in Nigeria. What forms your criteria for involvement in providing social housing for the citizenry?

I have seen in Nigeria very important projects of great note.  For instance, during my visit in Nigeria, I visited the Eko Atlantic City Project and also the Lagos Free Trade Zone and I must say that I am impressed with the size of these projects.  What I can infer from what I saw is that there are entrepreneurs, who have the strength to undertake large projects in this country. Likewise, housing is considered as an issue of infrastructure. So, if we have entrepreneurs dealing with such magnitude of infrastructure, so, we can bring our expertise to play.  The important thing is to have commitment from the government.

Taking the Brazilian example of social housing project, known in English as ‘My House, My Life’, it is a public private initiative, which involves the government and the private organisations.  In Brazil, we have much less housing deficit, compared to Nigeria.  Brazil has 5 million housing debts for low-income families.  This project, which started in 2009, aims to deliver two million houses for this category of people until 2014. We have up till now delivered more than one million housing types for the low-income earners.

The government of Brazil has been able to achieve this feat because one, it is committed to the project, and therefore created good business environment for investors into the housing industry.  To do this, the government gives incentives to encourage the investors, and also created better condition of financing.  It is therefore imperative to have such programme in Nigeria, if the nation is spirited to solving social housing shortages.  This kind of programme will not be successful if the government is not fully committed to ensure meaningful results. Therefore, it is very, very important to have the Nigerian government deeply involved; create foundations that can be used as a purpose vehicle to overcome this challenge.

Social housing is new in Nigeria and not much commitment has come its way from all tiers of government. From your experience, what are the problems facing provision of social housing?

From my involvement of housing provision and that of my country, Brazil, the major problem is the price of the land. Land is a commodity that has become scarce.  If we don’t find land in abundance, we would see the price rising.  In Brazil, the issue around land was very tough to overcome because it is a free market and that controls the price.  But the government tries to provide certain incentives to the entrepreneurs, who in turn try to implement.  What some of the entrepreneurs do is to locate land in farther locations.  However, what matters most is having land near to centre of business, otherwise, locating land far from business zone will create another problem for the low income families, who will have to be living far away from their jobs. It is a kind of challenge that must be solved by the government, though what is paramount is to provide houses for her people.

Globally property rights have been in the front burner. What is FIABCI’s stand on property right issues?

One of the focuses of FIABCI is to defend property rights.  Our society should be based on ownership right of property.  Ownership must be enacted, preserved and respected.  If private ownership of property is respected, that will create room for more investments into the property portfolio.  So, we have seen in some countries that there is no respect to property rights.  For instance, countries in the Eastern Europe do no longer belong to the iron cutting.  I have visited some countries in the eastern part of Europe like Bulgaria, Hungary, Russia, and there I saw very robust and developed system of registration in order to preserve the property right.  Whenever there is an offence to property rights, FIABCI will make its efforts in order to defend and try to overcome the situation of offence to property right.

In Nigeria for instance, there are lot of issues on property rights.  For instance ,we have cases of demolition of properties in the name of slum upgrading, or contravention of one law or the other. Unfortunately, some of these people are not given the right to return even after the slum would have been upgraded?  What is the best way to handle this situation?

It is ideal for every responsible government to ensure that her citizens live in descent houses. It is however regretful to see slums, and people living there.  Those who live in the slums do not have good condition of living.  Several problems of sanitation, health and associated with those living in slums.  And every concerned government will take steps to rectify this problem.

In my country, Brazil, we also have slums and it is a serious problem and we are working to implement better condition of living for people who live in slums.  For instance Sao polo, the city where I live, the local government has a very serious project to build new houses for the poor people living in slums, sell to them at a very, very low rate, with longer years of repayment plan and then destroy the slums. It is important to mention that these people are resettled before the slums are destroyed.

These new houses may force some of the slum occupants to change location, but what is certain is that they will have better condition of living when relocated.  In another local council, their approach to slums upgrading is different.  What they do is to put in place good infrastructure, thereby increasing the condition of living of the people and I can tell you that they are making much success story in giving the people better condition of living.

FIABCI has been working on a White Paper on property right, which was suspended.  As the new president, do you have the intention to revisit this paper?

The White Paper is related to property right through which all the principles on which FIABCI stands as far property right is concerned are presented. As a body, we had to suspend this project due to lack of personnel.  However, I intend to revisit this project during my tenure, if not finished, at least it should be advanced, so we can have a document on property right.

How would you ensure that Nigerian Chapter of FIABCI becomes stronger in the world body?

I have had some discussions with them during my visit and I will strive to implement some of the issues they are raising and have raised. Majorly, they are asking that FIABCI Africa be deeper in FIABCI international and this one of my targets to get Nigerian FIABCI and by extension Africa deeply rooted in the global body and my remarks to them is that it is important that Africa will be stronger if the continent has many chapters in FIABCI international and this one of the reasons I am here to encourage membership.

In few days, Taiwan will be hosting your World Congress. What are your expectations?

In few days from now, precisely between May 27 to 29, 2013, we’ll have our World Congress in Taichung, an important city in Taiwan and this congress is very important for me because that will be my taking off.  At the congress, we would have several keynote speakers talking about real estate project, sustainability of cities. This is a good time for us in FIABCI as we are establishing World Council of professionals, and this is to increase our networking among professionals.