CategoriesReal Estate tips & tricks

MULTI-STORY BUILDING TITLE OWNERSHIP

It is critical to consider the legal implications of any real estate development before proceeding. Any type of real estate transaction should be approached with consideration for the legal ramifications.

Understanding the optimal balance to be struck between the competing interests of developers and off-takers is essential.

Recognizing the significance of regulation as well as the limitations of regulation. The government should refrain from attempting to regulate everything.

The question of whether a strata title is appropriate under the law. Titles should be scrutinized more rigorously by the government. The title of the paper is a source of concern for off-takers. In multistory buildings, the problem is the title you get from a flat or condominium. Is it a sublease or a deed of assignment? If it were a sublease, then it means the developers still have a title over the property which is a risk. Government should look into this to give off-taker reassurance.

In this form of development, there is the issue of shared places. They are often dealt with on a contractual basis. In light of the potential threat that the developer may still be in control of the head title, should it be allowed to contract or should the state intervene and establish a certain presumption of shared ownership?

 

Our recommendations

  1. Joint ownership of common areas, with a distinction between the common areas themselves and the building structure itself. In this domain of shared areas, there should be some limited kind of statutory innovation to protect those who take advantage of the situation. The Government should take this into consideration.
  2. We advised that, once the development is complete, the developer should submit the original head title deed with the appropriate state government agency. Because the document in the possession of the developer allows the developer to use it as leverage or for any other purpose. There are instances in which all of the properties are owned by a single individual who holds all of the titles. As a result, we expect the government to operate in this area with minimum oversight and regulatory intervention.
  3. Insurance after the project is completed is an issue that needs to be addressed. When it comes to a multi-story building, who owns the insurable interest? These are the concerns that need to be addressed in order to move forward. Generally speaking, insurance can be obtained at any stage of real estate development, and it is permissible to do so in accordance with Sections 64 and 65 of the Insurance Act of 2003 – all public structures and all buildings under construction with more than two stories are required to be insured. Insurance is available to assist with every stage of the change in the value of real estate. There is insurance support available throughout the value chain of the real estate sector, and it can be taken advantage of.

Off-takers of multi-story or high-rise buildings should ask the right questions about the type of title they receive from the property of their interest.

At Fine and Country, we specialize in transaction management and advisory in the luxury real estate space. Contact us today to be of service.

 

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+234 809 600 0017

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CategoriesReal Estate

DEMAND FOR SMALLER OFFICE SPACES IN GRADE A BUILDINGS IS ON THE RISE

Companies are beginning to have more space than required for their employees as they migrate to a hybrid work paradigm. Despite the fact that working from home is becoming the new normal, most people still want to have a physical address for their business.

As we settle into this new normal, commercial offices have witnessed distinct variations in demand for office space. With sustainability, smart buildings, and remote, work likely to propel a new face of work, the commercial office sector is swiftly evolving. The global pandemic is still active, with a new strain of the virus known as the “Omicron variant”. Organizations are paying attention to health concerns while keeping a safe and social distance.

Many businesses are reconsidering their physical space requirements, both in the short and long term with a view to maximizing space utilization. Many businesses operate a hybrid model, with flexible work from home options and alternate days of virtual work. Interested clients typically inquire about 200–400 SQM of office space in Grade A buildings.

As a result, these are the top 6 reasons for the increased demand for smaller office spaces.

  • many businesses are now operating a hybrid model
  • flexible work from home options
  • alternate days of virtual work
  • Maximizing space utilization
  • Physical office presence
  • Wellness, leisure and health considerations

If you are looking to move into smaller office spaces in Ikoyi and Victoria Island, contact Fine and Country. We also recommend the Finery Suite for a team of small businesses in a shared office space.

CategoriesReal Estate

ARE LUXURY PROPERTIES OVERPRICED?

In the Nigerian real estate business, challenges bring opportunities.

The cost of a luxury property is one of the most commonly asked topics regarding it. This is the typical format for such enquiries.

Don’t you think some of these luxury residences are overvalued in actual terms, which is possibly why they’ve been vacant for so long?

Fine and Country West Africa  has seen two or three economic downturns in Nigeria. We entered the market in the midst of the first economic recession in 2008, when there appeared to be little demand. While it is true that there are many abandoned buildings, how can we assess the quality of these structures and what are the buildings in question? High-quality development are typically sold off after delivery or shortly thereafter. The average delivery time for a luxury development is 4 to 7 years. 4 Bourdillon, Tango towers, and Sisi Paris(lease only) are just a few examples of high-end luxury highrise buildings in Ikoyi that have been completely sold out or leased out with at least 90% occupancy, indicating a developer’s success.

When a luxury residential building is being developed and put to the market, the target market is the one per cent of the one per cent who can afford it. If the markets accept it and pay for it, it signifies that they have voted with their money. It’s a sign that their target market approves of them.

 

A flight to quality has taken place in the luxury real estate segment. Particularly in light of the terrible collapse of a building in Ikoyi in 2021. From the standpoint of market size in terms of our population, what Lagos symbolizes in terms of the Nigerian economy, West African economy, and African economy shows that we are only scratching the surface.

We don’t have many luxury high rise residential buildings in Lagos; they can simply be tallied and identified because Nigeria doesn’t have up to 50 tall buildings that may be classified as high rise luxury residential buildings.

Those who invest in the luxury market are accomplished individuals. There has been a philosophical approach to investing, since the pandemic. Some of these previously conservative investors are beginning to diversify their portfolios and changing their lifestyles.

Previously, the emphasis was on location, location, and location, but now the emphasis is on location, location, and lifestyle.

Investors in the upper quartile are showing a trend. These are some of the current trends:

  1. These investors are keeping their current residences.
  2. Some people are buying in locations like Lakowe and referring to their current residences as their city location.

Despite its location, Lakowe, a green constructed lifestyle community with a golf resort, has comparable pricing per square metre to luxury real estate developments in central locations like Ikoyi. The lifestyle estate is the concept. Similarly, if you wish to live there as a retirement home, Twin Lake Estate will provide a lifestyle living as well.

The cause for the vacancy in some of these high-end developments could be as follows:

  1. The properties are of poor quality.
  2. They did not construct in accordance with market demand and expectations.
  3. They are not represented by professionals.
  4. They aren’t a good match for the market.
CategoriesBlog Real Estate

THE DOLLAR ECONOMY & NAIRA ECONOMY OF THE UPPER QUARTILE OF REAL ESTATE IN NIGERIA

In Lagos’ real estate upper quartile, there is an increase in tall structures in the pipeline, under construction, and nearing completion. The premium segment, which includes Ikoyi, Banana Island, and Victoria Island, is referred to as the upper quartile. Due to the fluctuation around the Naira, there is a dichotomy between Naira and Dollar initiatives, with the result that intelligent investors tend to drift towards the Dollar economy in order to enhance their return on investments. Working with Naira-based projects is dangerous for investors, especially in the elite luxury market. Top developers in the luxury real estate business have been sticking with the dollar economy within the Nigerian market for the past 5 years.

In the luxury real estate market, there are micro divisions that are sometimes referred to as affordable luxury real estate. These developers frequently work in the luxury real estate Naira based sector. Despite being a tall building, these constructions are priced in Naira and range in height from 8 to 12 stories.

The more complex the construction and the investment necessary, the higher the cost of the building, which is reflected in the pricing. Average residential space prices in the luxury segment range from $2500 to $4500 per square metre, with more affordable options falling somewhere between $2850 and $3500 square metres. The more exclusive spaces, such as the penthouse, cost around 4500 per square metre and up.

Free From above of dollar bills in opened black envelope placed on stack of United states cash money as concept of personal income Stock Photo

Desperation does not fit with luxury in the luxury real estate market. These developers are willing to wait and collaborate with their intended/target audience. The delivery timeframe for these developments is typically 4–7 years.

Free Black Blue and Red Graph Illustration Stock Photo

 

Key things to Know about the Luxury Real Estate Market.

  1. The luxury real estate market is often reserved for long-term investors. Industrialists, financial institutions, and some corporations having capital in the country that is dedicated to the Nigerian market are among these investors.
  2. One strategy to diversify is to invest in luxury residential real estate, as this is an area where the fund’s worth can be preserved. Multinationals, public-private sector (Kanti Towers was sold to Nigerian Maritime Administration and Safety Agency (NIMASA) for $17.47 billion in 2021), corporate, and ultra-high net worth investors are among the commercial segments’ investors.The Famfa Oil and Dangote skyscraper is set to deliver in 2022, adding to the stock of Grade A office space in the city, although these investors aren’t typically thought of as developers.
  3. These investors plan to use these high-rise buildings for themselves or for a portion of their use, while others are looking for uptakers. These investors are patient and selective in who they allow inside their properties. They would sometimes keep the property for a long period until they found the right kind of client to occupy this space. In the commercial luxury market, this might cause market distortions in terms of vacancy rate, supply, demand, and conversion rate. Investors anxious about their Naira stack and not being able to convert it to dollars or take it out of the nation are increasingly turning to real estate as a safe haven. They may not have all of the finances, but they are willing to work together on large commercial and residential luxury space projects in terms of collaboration.
  4. In terms of commercial figures, it varies depending on the location, from Ikoyi to Victoria Island, which is reflected in their rates. Grade A, B, and other categories exist for office spaces, but at Fine and Country, we focus on Grade A office spaces.

 

Some of these office space’s developers, investors, and landlords weren’t as flexible a few years ago. However, with the downsizing and giving back of office spaces in the previous three years, particularly with COVID, landlords have become more practical, offering concessions such as rent free periods and fit out periods as a sort of discount. Because some of these assets are being retained to sell off to investors or sell into REITS, astute investors may desire to maintain a minimum price per square metre in the commercial sector.

 

As a result, rather than affecting the pricing of commercial office space, it is important to maintain/protect the pricing per square metre by offering concessions or other value areas.

CategoriesReal Estate

TOP 3 TRENDS IN LUXURY RESIDENTIAL DEVELOPMENT IN 2022

The ultra-high or super-luxury segment of real estate, such as 4 Bourdillon, has seen a lot of interest. For such ultra-high-end properties as the Belmonte, there is also a long waiting list of potential tenants. That being said, there is a demand in that regard. The type of developer and the quality of the development are important to investors and uptakers in this market. When the target audience commits to purchasing these properties, luxury developments that sell faster in this exclusive real estate space are those that have been voted on by the target audience. This indicates that the property meets market criteria in terms of location, lifestyle, quality, investment security, and prestige. When some luxury properties have a high vacancy rate, it’s not unreasonable to assume that the property does not meet the criteria of its target audience, which is the top 1% of the population. Luxury is not for everyone, and those who purchase it are well-versed in the art of purchasing exclusive real estate. There is an oversupply of luxury office space in the commercial market. When it comes to oversupply, corporations are cycling within the market’s available space, whether through downsizing, restructuring, a shift in strategy, or expansion. Oversupply simply indicates that corporations have a wide range of options to choose from, rather than being limited to specific buildings in the Grade A office space.

Free Roof Top Swimming Pool on Building Stock Photo

Especially in light of the tragic building collapse in Ikoyi in 2021, investors and uptakers would be more informed and inquisitive about their interests in 2022. Here are some of the top three luxury residential development trends for 2022.

In this space, there are a few trends to keep an eye on.

  1. Real estate players will be regulated and evaluated.
  2. Developers will be subjected to many greater restrictions in terms of what they may build, which must adhere to local zoning laws.
  3. In luxury real estate, particularly residential, people value location and exclusivity, but developers’ quality will now be prioritized.

Get in touch

phone

+234 809 600 0024
+234 809 600 0017

10, Onisiwo street, off Lateef Jakande, Ikoyi, Lagos.

email

admin@fineandcountryng.com

about us

Fine & Country is a global real estate brand, specializing in providing a premium service through exceptional marketing and professionalism in the upper quartile of the market.

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