Lagos land scarcity is pushing homes into the sky, Elara CEO
As Lagos continues to grow and available land becomes increasingly constrained, the way homes are developed across the city is also beginning to change. The post Lagos land scarcity is pushing homes into the sky, Elara CEO appeared first on Nairametrics .
Lagos, a rapidly expanding metropolis, is witnessing a shift in residential development as available land becomes increasingly scarce. Developers are now constructing high-rise residential communities to accommodate more homes on expensive parcels of land. This trend is attracting property buyers, including Nigerians living in central Lagos, the diaspora, and investors seeking valuable properties that retain and appreciate in value.
However, this growing demand for high-end residential properties comes with a range of challenges for developers. These include rising construction and financing costs, approval processes, infrastructure requirements, and the need to deliver high-quality units that justify premium prices. Ayodeji Johnson, the Managing Director and Chief Executive Officer of Elara Development, provides insights into the factors driving this shift in Lagos' high-end residential market.
Johnson emphasizes that real estate ownership remains a primary means for capital retention and investment diversification in Lagos. High demand and limited land supply continue to support property values in prime locations. Buyers are now seeking well-located, professionally developed properties that offer strong fundamentals, such as location, quality construction, infrastructure, amenities, security, and an overall exceptional apartment-living experience.
Financing costs and construction cost inflation pose significant challenges for developers. Land and infrastructure costs remain relatively fixed once a site is committed, but financing costs and the prices of imported construction materials can fluctuate significantly during the construction phase. To protect the commercial viability of projects, developers must practice disciplined cost management, careful procurement, and constant attention to the relationship between specification, quality, and cost.
Despite progress in Lagos' approvals and permitting processes, Johnson believes there is still room for improvement. He advocates for a more thorough, automated, and transparent process to provide builders and investors with a clear and predictable pathway to obtaining approvals. Certainty is crucial in development, as delays translate into additional costs.
Additionally, Johnson calls for a thorough examination of how capital is made available to developers, urging financial institutions and policymakers to create an environment that enables responsible developers to access capital at rates that ensure project viability.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
