Shortages of skills & competences; constraint to private sector real estate funding in the emerging economies

There is a growing demand for real estate developments in the emerging economies due to population growth and the increasing middle class. This paper examines how shortages of skills and competences in the emerging economies have affected the ability of real estate private developers, including their access to funding for real estate projects. Through critical analysis of literature and case studies in Nigeria and South Africa, the study examined real estate developments with a view to assessing the impact of skills and competences on the development process and their ability to source project funding internally and externally. The findings suggest that the shortage of skills and competences amongst real estate private sector developers in the emerging economies is a major deterrent to both internal and external investors due to several factors including low production and substandard housing, inadequate environmental assessment which has resulted in reduced sales. A notable example is the case study cited in the Lekki area of Lagos, Nigeria where the Ocean waters floods the houses because of inadequate design and construction as a result of deficiencies in the skills and competences of the developers who built the estates. There is a need for enhanced skills and development of competences supported by a strategic framework with an enabling policy environment, legal framework, macroeconomic management regime that encourages private sector participation in real estate development.