24/10/2025
Why Ban Real Estate Agents in Bayelsa??
Do you know a thing about demand and supply? What about root causes and effects?
-Restricting real estate agents in Bayelsa because you want to fight rising rents, is not only misguided, as it ignores the main housing supply shortage, but also a miscalculated step, that would worsen the crisis.
Why Ignore the Root Cause (Which is Supply Shortage) and Go Treating Symptoms?
-Rent spikes are caused primarily from high demand of rentals in 'preferable locations' exceeding the supply of such in the state, exacerbated by 'improving', but still limited development.
When clients call seeking rentals - you'd hear all sort of criteria for the kind of houses they prefer (tarred street, basic amenities like electricity and water, flood free, etc) - when they know Bayelsa is below sea level, and as such, most areas are environmentally challenged -
Imagine the cost for landlords to fill the lands about 5-7 blocks high for the DPC, before even building - not to talk of transporting materials for double the price - note: it takes an average of 15 / 20 trips of 10 tyre trucks @ 120k each, to fill a plot of land.
What About Inflation - Ever Heard Of It?
Although, some agents exploit people, (which the Association of Real Estate Consultants in the state is working on reducing to the barest minimum) but banning agents means you are neglecting inflation.
Most people think older buildings shouldn't be affected by inflation, but I am not surprised. They forget that the owner of the houses are looking to build again and they also spend money on same utilities that everyone complains of price increment - and for that, has to adjust their income source to match current reality.
For new buildings, just get to the closest building site in your area and you'd see how painstakingly landlords spend to build a house.
At the same time, we cannot also rule out the fact that landlords get carried away and tend to overprice their rents due to their perceived level of expenses to match profit.
Take this example - my engineer recently estimated completing a 7 units of standard one-bedroom bungalows for a client at 75 million naira - including cost of acquiring 2-plots of land in a prime location at Opolo Express.
Now, imagine giving the 7 units out for average of 700k naira (considered too pricey) - that's 4.2m yearly gross. Calculate the number of years to reach breakeven (for capital of 75m) - let me help you - that's is about 15 years - now also factor rising inflation, which continues to devalue your rental income as the years go by - also deduct maintenance please - you see that landlords have to painfully sacrifice their capital and not benefit from their products until 15 years later? You better thank one when next you see them- like my boss Godswill Ogori ...
Our Economy
Another reason banning agents is absurd is that, whether you like it or not, agency serves as a means of livelihood and can cause an economic backlash if scrapped.
Agents' 10% commissions sustain livelihoods in the job-scarce state and a ban could fuel unemployment.
Don't overlook Efficiency.
-Agents facilitate rentals in very difficult environments, cutting your search costs and helping landlords that are not on ground at their properties.
In Conclusion.....we have seen the growing rate of urban migration into Yenagoa, and so, prioritizing low-cost housing construction is a more effective solution to ease the crisis.
Agents don't cause scarcity - Building affordable units through public-private partnerships will help arrive at subsidized cost of buildings which will in turn, address the heavy housing deficit - directly increasing supply and stabilizing rents.
Call or WhatsApp Bayelsa Property Orbit on 08063537741 for Land Acquisition and Development anywhere in Bayelsa...
Taribio Mac-Donald
