Construction materials have substantially increased and in some cases more than doubled due to inflation, local currency Naira devaluation, rising energy and transportation costs.

This ongoing volatility is placing pressure on the Nigerian construction industry, forcing many projects to be shelved and raising anxiety among developers, contractors and end users.

As indicated above, some projects especially those priced in local currency are being delayed or pulled off the market to enable developers re strategise on more effective sourcing, cost management measures and project delivery. Others are exploring and effecting price escalations, or price conversions from local currency to foreign currency to hedge against fluctuations.

IMPACT ON END USERS. WHAT GOES UP STAYS UP IN IKOYI AND ENVIRONS.

With the Nigerian inflation rate in excess of 19%, and the impact of the Naira devaluation being felt across the real estate estate sector, most end users are also being forced to re assess their investments.

However, for owner occupiers who are determined to move up the property ladder, whether down sizing, or up scaling in terms of neighbourhood and lifestyle, the current market presents a unique opportunity to shop for great deals. Cash buyers who can commit to quick deals have a negotiation advantage when dealing with old developer stock, while those buyers looking to buy older Ikoyi homes and similar environs may be better served making quick decisions before prices reach unwieldy heights.

Inevitably, with real estate in Lagos, especially in upmarket locations like Ikoyi, what goes up doesn’t come down.

NEW RELEASES ON ILABERE, and COOPER ROAD IKOYI
For homebuyers looking to move to Ikoyi, Banana Island, Victoria Garden City and similar neighbourhoods, Fine and Country West Africa has some new releases that are all well priced with motivated sellers.

ILABERE TERRACE HOME: This well priced 4 bedroom terrace corner piece located in Ikoyi comes with a designer garden and top amenities in excellent conditions.

Asking offers from ₦380M only until end of August, 2022.

MODERN TOWNHOUSE ON COOPER ROAD, IKOYI: Price on Application. Ideal for buy to let investor. The property has an existing corporate tenant.

Real estate ownership involves more than just making a financial commitment, particularly when the property in question is intended to be occupied by residents. A sense of accomplishment and elevated social standing are both benefits of property ownership.

A variety of considerations need to be given prior to either the construction or purchase in real estate. The lifestyle that would be supported by the possible purchase and its location are the two aspects of these considerations that are most essential.

A significant factor to take into account is the location’s proximity to Central Business Districts, important facilities like hospitals and shopping malls, and upcoming construction projects.

Ikoyi and Victoria Island are in high demand as real estate options in Lagos State. Locations such as Banana Island, Twinlakes Estate, and Lakowe are guaranteed to provide investors with high returns on investment in the years to come. Other areas that fit geography and lifestyle include these areas.

Real estate’s durability and potential as an inflation hedge are two of its biggest draws.

Investors should focus on project completion, pre-construction groundwork, and land title documentation.

Project Completion – The aesthetic appeal of the property will be improved by selecting the best roof, wall, and floor finishes, which will also raise the investor’s rental income. Additionally, the asset’s usable life is extended. When fixing broken items frequently, using subpar products or finishing materials may seem cost-effective in the near term. On the other hand, the long-term cost of this strategy will be higher.

Pre-Construction Groundwork – Before construction can begin, a number of measures must be taken to guarantee the structure’s structural integrity and spare buyers the hassle of frequent building maintenance. Along with topographic surveying, soil examination is one of these actions. This test is essential since soil types vary by region, and the outcome will define the optimal construction approach and the types of structures that will perform best with the soil. Prior to any work, it is vital that both tests and surveys are undertaken in accordance with the requirements of the construction industry. As an investor or buyer, you must investigate and appraise the property prior to making a financial commitment.

Land Title Documents – Buyers and investors must possess the appropriate property title documents. Ensure that the Deed of Assignment is properly recorded where the property has been developed. Depending on the type of property, the title may vary, making it vital to check with real estate professionals. Purchasing a property is the simple part, but before claiming possession, the buyer must confirm that the title papers are not encumbered and, if necessary, secure the title documents.