New factors influencing Nigeria’s residential real estate market

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Following persisting unfavourable policies and liquidity crisis affecting the economy, the heat on the nation’s real estate is intensifying

, especially in the residential market.

An estate surveyor and valuer, Mr. Sam Eboigbe, said: The listings and corresponding offers of residential real estate transactions and deals in the market place are lately becoming interesting. “We have witnessed tremendous appreciation in the prices of serviced residential blocks of flats in Lekki Phase 1, Victoria Island, mainland post-COVID till the present day on concluded listings.

“Some projects have failed to meet specific timelines of completion due to escalating prices of building materials. The completed projects with a revised cost of construction will ultimately have price adjustments. It should also be stated that in some cases, completed projects are offered in the secondary market as the original subscribers have sold out during the construction period to secondary buyers, ” he said.

“This is particularly made worse as the construction industry depends entirely on foreign importation for the construction materials. The scarcity of foreign exchange has proven to be a rather difficult task to import building materials from other countries. The implication is that there is a paucity of materials in the country and where available, they are very expensive. As the prices of materials increase, the price of real estate increases too.

 

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