Melvin Onwubuke
Nigerian Estate developers are facing a Herculean task in meeting project delivery timeline, due to the foreign exchange crisis.
A report by Nairametrics show that the situation is aggravated for those who had previously entered into contracts with variation clauses, as they now battle significant losses as a result of sharp increase in the cost of building materials, cement etc.
The knock-on effect of this is felt across the nations real estate development sector, where, there has been a surge in the cost of building materials for instance, the price of cement is now between N9000 and N15,000 in less than 3 months.
In Addition, the challenges, goes beyond trying to break even from investment, as it now affects the quality of lives within estates developed. Particular, the estates offering serviced arrangements, such that, it has become difficult, maintaining constant power supply due the rising cost of diesel.
Furthermore, this has led to increment in estate dues, creating unnecessary rancour between residents and estate service providers; with some estate residents resisting the raise in estate dues, citing economic hardship.
