INVESTING IN LUXURY RESIDENTIAL HIGH RISE PROPERTIES: The Factors To Consider
The Nigerian British Infrastructure Group organized a webinar titled “The Rules of Engagement: High Rise and Complex Structures in Nigeria.”
Seasoned sector specialists, including Fine and Country CEO Udo Okonjo, provided insight and solutions as rules of engagement for buyers, investors, developers, and the government who are all stakeholders in High Rise and Complex Structures.
5 Notable points raised include the following:
1. Failing to hire professionals to supervise complex projects compromises the interests of all stakeholders.
2 A project team with qualified key staff with suitable expertise, as well as a track record of delivering similar properties, is critical to the success of a high-rise construction.
3. Health and safety should be a legal necessity in the construction of highrise buildings.
4. A building’s structure is similar to a human skeleton. Compromise is not an option for developers. As a result, developers should only hire competent and capable professionals, while direct labor in the construction of high-rise buildings should be prohibited.
Vertical extensions on a building that has previously been approved for a number of levels should never be permitted.
5. For verification, clients and developers should look at the licenses of professionals in the development of high rise buildings.
Our CEO, Mrs. Udo Okonjo, focused on the purchasers/buyers as clients’ perspectives and what they must look out for as part of risk management and due diligence before investing in any luxury residential or other properties under development.
She noted that before investing in high-rise luxury residences, investors must ask critical questions which she referred to as ‘The 5 W’s of Luxury High Rise Residential Real Estate’.
She noted that we all share a collective responsibility in real estate as stakeholders.
In her quote by Audrey Hepburn, she stated:
“I don’t believe in collective guilt, but I do believe in collective responsibility.”
Some of the key questions include; WHO is the Developer, Financier, Key Contractor, Consultants and are they specialists in high rise buildings? WHAT exactly is being built and does it satisfy building and zoning regulations? WHERE is it being built- Location Location Location means different things in different places and should include environmental impact assessment reports to ensure you understand how your investment will be impacted long term. WHEN will it be completed and does the developer have a track record or delivery of similar projects and are there any guarantees? and finally what is the WOW factor? Rising sky high in itself is not enough of a wow factor if the foundation is wrong and if other key aspects are ignored. There are numerous ways to make a statement in luxury residential projects if creativity is employed.
You can access Fine and Country West Africa’s detailed questionnaire for Luxury Residential New Developments here to help you develop your due diligence before investing in a new build.
If you are interested in expert advisory on the Marketing and Sales of Luxury Residential Developments, please review and fill out this new development form.