An official report coming from the economy watch, Financial Derivatives Company Limited has informed that the number of vacant luxury properties in the upper-class real estate neighbourhoods of Lekki, Victoria Island and Ikoyi, Lagos has risen by 72 percent over the last 18 months.

The Executive Officer of Sujimoto Construction Limited, a Lagos-based real estate development company, Mr Sijibomi Ogundele, who revealed  this said the surge is due to over pricing.
He explained that the cost of construction is usually padded and warned prospective investors to beware.

“This has become a motto on a whole new level for prospective investors, who seek the very much-deserved value for money. To avoid drawing hasty conclusions and to guide our investment choices, investors should only listen to industry experts and verifiable perspectives as seen in the FDC research, and avoid the bandwagon of those listening to jaundiced opinions, which are quite popular.

Mr Ogundele, Sujimoto as he is fondly called, however, said that not all house owners are corrupt.

“To put this more clearly, apartments that should not cost more than 100 million naira, are costing investors 400 million naira to construct. Therefore, owners have no other choice than to let out the apartment at 40 million naira, transferring the padded cost of construction to tenants.

According to him, the case of high price tags on houses should be based on not just quantity but quality.

“A developer who compromises on quality of materials, no matter how highbrow the property’s location, has no right to place an exorbitant price on it. Thus, the argument for demand exceeding supply, as far as empty apartments in Ikoyi go, is unfounded.

“Luxury apartments are in high demand. Poorly finished buildings with exorbitant prices constitute the pile of empty apartments constantly being alluded to. Consider this: Are developments such as Tango Towers and Ultimate Towers in Ikoyi, empty? If such developments are not empty, imagine what would happen when the LorenzoBySujimoto with its high-end features, state-of-the-art facilities, exceptional returns on investment and competitive pricing, is completed?

The Lagos-based developer opinionated that luxury is not expensive, rather it is the intention to deliver luxury that is expensive.

“While the cost of a nice three-bedroom apartment in Johannesburg would go for about $350,000, the same apartment in Ikoyi would want $1 million. If the cost of construction materials is the same all over the world, the price of marble, granite, cement, tiles, kitchen, doors, paints etc, why is cost in Nigeria about 300 percent higher?

“You cannot offer a Toyota for the price of a Bentley. One might argue that both cars will eventually ply the same road but the efficiency and prestige of a Bentley speaks for itself. Luxury sells itself. For us at Sujimoto, our biggest marketers are our clients. Listen, I have sold crap before and I have sold luxury and I can tell you from experience that it is easier to sell luxury than crap.

“When you sell luxury, you sell peace of mind, you have not only sold something that would last for generations, but you win the heart of your client who now becomes your evangelist. With the oil price plummeting, and major economies across the world experiencing downturn, individuals and organisations no longer have loose money to throw around. And with the current downsizing by companies, prospective tenants demand full value for their hard-earned money.

Ogundele insisted that developers in Nigeria must adjust to the current situation and raise the standards of the country’s construction market so as to compete with foreign developers.

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Experts have said that for the ultra luxury market in Nigeria to take a hit, there would have to be serious financial woes that would go a lot deeper than what is currently being experienced because the rich is getting richer in the country.

More so, wealthy foreign buyers are also coming into the country to take advantage of the weak naira now on daily free fall and relatively bargain prices.

LEADERSHIP checks in Lagos showed that while sales are much weaker for lower-priced luxury homes because banks are not giving out facilities frequently like they used to do before the advent of Treasury Single Account(TSA) high ultra end market has remained robust because rich buyers are looking for trophy homes and the supply is limited right now in the country.

Though prices of these homes range from $1 million and above, these wealthy individuals and corporate organisations are less concerned about high interest rates and other mortgage issues because they are paying cash.

Presently, rental rates in Lagos is said to be one of the highest in the world with achievable rents of more than $1,020/m2 (about N186,000/m2) annually.

A realtor, Adolo Peter, said there was surge in fresh development of massive property for the super rich on the highbrow areas of Lagos Island, Eko Atlantic and Banana Island.

He said the Ikoyi , Victoria Island and Lekki peninsular were now the toast of buyers in search for prime properties , saying the decline witnessed in the past was as a result of neglect and infrastructural decay in the area.

“These areas command the highest densities of millionaires within its boundaries.Rental values had been on the upward swing in recent times in Ikoyi, Victoria Island. This I can trace to direct fallout from infrastructural renewal drive of the Lagos State Government in the last couple of years.

“You see real estate investors investing massively in real estate in this highbrow axis I have listed, while property owners are also improving on their properties in order to command good rental value,” he said.

In apparent move to fill the vacuum and meet the demand for such properties in Nigeria’s property market, the managing director of Sijimoto Construction Limited, Mr Sijibomi Ogundele, said the nation’s real estate market has come of age, saying his firm has concluded plans to commence the building of a sprawling mansion to meet the demand for choice residential accommodation on highbrow Ikoyi -Victoria Island axis in Lagos State.

Ogundele said the multi-billion naira project christened Lorenzo that would be nestled on 3,800 square meters of land in the highbrow area would be high rise blocks of super flats.

Ogundele said Lorenzo by Sujimoto is a magnificent development and symbol of structural mastery they hope to realise in Ikoyi’s prestigious neighborhood of Bourdillon within duration of 30 months.

According to him, the project is being financed 30 per cent by the company and 40 per cent by investors while off takers has 30 equity stakes in the project.

Harping on what make the apartments attract the attention of the super rich he said, “As a society, we must free ourselves from architectural slavery. This is why in terms of features and amenities, Lorenzo by Sujimoto leads the pack in comparison to other projects within Lagos, Nigeria and Africa. With its state of the art facilities, standing shoulder-to-shoulder to what exists in top-rated countries; it is definitely a force to reckon with.

“The Lorenzo, the nation’s first luxury apartments of its kind located in Ikoyi is a magnificent 25- floor architectural masterpiece built on 3,800 square meters of amazing landscape.

“These fully automated outstanding luxury apartments have two kitchens, three parking spaces, standard gym, world class spa, crèche, exceptional landscape and a five-star restaurant, penthouse suite with private swimming pool.

“The hallmark of this development is an enviable aesthetic icon called the eye of Bourdillon, present on the 16th floor. This unique and revolutionary structure gives a breathtaking view of Lagos like you have never experienced before.

“The Lorenzo’s vista bestows breath-taking views of the Lekki-Ikoyi cable bridge, the Bourdillon Boulevard, the Lagos lagoon and the atlantic ocean. The right choice for perceptive property aficionados ready for a fusion of smart-home technology and neo-classicist crafted residences in one of the most sought after vicinity in Lagos, Nigeria.”

Ogundele explained that the real estate company presents home owners the elegance of world class residential poise on the nation’s shores with unrivalled features, facilities and excellent services.

Harping on the company’s ability to provide what top echelon need in a property, he said, “We are bringing three fundamental pillars of real estate into one space. Location, architecture and lifestyle.

“The average contemporary apartment on Bourdillon is over $1 million and the prices keep getting better for property owners. Over the years, Bourdillon Road seems to always buck the trend in bearish runs in the real estate market. This proven resilience makes it a sure bet for investors.

“It is the ultimate spice of pure luxury and the right choice for perceptive property aficionados ready for a fusion of smart-home . On height, it is the tallest residential building in Ikoyi and probably Lagos with 25 floors, 57 units including 3 Pent-houses & 2 Villas (Multi-storey building, apartments including 2- bedrooms, 3-bedrooms, 4-bedrooms, 4-bedroom Villas and 6-bedroom Penthouse).”

He added the size of units is between 360m2 to 1,000m2 (including common areas), two fully operational swimming pools that is situated on the 16th floor and the other on the lobby/podium).

As a mark of the development of more of such edifices in the nation’s vibrant cities, a report by PricewaterhouseCoopers (PwC) had before now puts the value of the real estate sector in the country at $9.16 billion in 2014.

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