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:
- These investors are keeping their current residences.
- 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:
- The properties are of poor quality.
- They did not construct in accordance with market demand and expectations.
- They are not represented by professionals.
- They aren’t a good match for the market.