Buyers increase deals in luxury property amid instability — Stakeholder
By Uwana Akpan
Senior partner and chief Executive officer (CEO), Knight Frank Nigeria, Frank Okosun over the weekend said, hopes are high for Nigeria’s real estate as the luxury segment of the market is showing a slight recovery with significant changes in both work and home.
According to him, price of luxury properties have also risen steadily over the last few months in major cities such as Abuja and Lagos which has increased sales volume in attached property market.
Okosun, who revealed this in an interview to journalists in Lagos said, “The affluent have realigned their priorities to invest more into real estate to provide their families a sense of security, health, safety which doubles the demand for luxury apartment and increases sales volume in luxury market.”
According to him, “Many experts believe that, the high –end luxury property market in Nigeria has experienced a ‘glut’ due to the general declined in purchasing power and continued exit of expatriates from the country, especially in the wake of pandemic.”
He further disclosed that, unfavorable government policies on economy have substantially affected the luxury market.
Recall that in previous years, the conducive climate for investment had attracted expatriates, foreign players/investor into the country and these have become major occupiers of luxury market in the country.
However, the Executive Chairman, stressed that, stringent government regulations have resulted in removal of bottlenecks like money laundering which further sidelined luxury transactions as more prospective buyers take more a cautious approach.
He also noted that, “The current situation in the state has triggered demand for smaller apartments and has inspired developers to reconstruct luxury projects to meet the current demand on ground.”
Meanwhile, report from experts stated that the trend of 2020 has created a complete shift in lifestyle choice, unlikely to be reversed.
An estate surveyor and valuer, Mr. Samson Agbato, asserted that, cash liquidity fuelled by low price and weight of the pandemic are major reasons for low demand for luxury property in the country.
He said, “Factors that would increase buying demand are lower interest rate, low inventory levels, a millennial population that is ready and some others.”
An estate surveyor and managing partner, Emeka Okoronkwo of Kings’ Court Realtors, said in a statement that, there has been a “Catharsis” in the market, what was luxury before becoming the basic, and that most of the current stocks are in that category.
He said in the luxury market, there are super luxury and ultra luxury which are delineated by location and found in Banana Island and Eko Atlantic.
