Design and Build Property Services in Lagos, Nigeria

Property development is one of the most rewarding businesses to be involved in. However, it also has its share of challenges. Property development is essentially the process of developing property such as buildings, roads, and other infrastructure. It involves design, construction, and maintenance of these properties. Property development is an ever-evolving field that requires constant updating of processes, methodologies, and technology. The property development industry is also prone to a lot of external influences that can sometimes pose a challenge for businesses operating in the sector.

This article will highlight some of the challenges facing the Nigerian property development industry and the steps you can take to grow your business.

Nigeria’s Property Market

In Nigeria’s rapidly developing market economy, new property developments are sprouting up everywhere. However, the supply of land for property development is limited, which has led to an increase in the cost of real estate.

This has made buying property in Lagos and other major cities unattractive to the average Nigerian.

In spite of this, Nigeria’s property market is expected to register healthy growth in the coming years. The government is investing heavily in infrastructure and real estate, which should support a boost in property demand.

However, growing demand combined with inadequate supply puts pressure on prices. This might lead to increased interest from foreign investors.

Lack of Experience in the Industry

When it comes to experience, the Nigerian property development industry does not rank highly compared to other developing countries. While most African countries have a long property development history, Nigeria is relatively new to the scene.

There are signs of improvement as the industry grows. A lot of training and mentorship programs are being sponsored by international organizations and banks to boost the country’s capacity to deliver property.

The shortage of experienced personnel is one of the biggest challenges the industry faces. It will take time for the industry to absorb the growing number of trained personnel graduating from the country’s educational institutions.

High Costs

One of the biggest challenges facing the property development industry in Nigeria is high costs. The sector is not without its challenges, but one of its biggest is cost. The cost of construction in Nigeria is high by regional standards.

One of the reasons for this is a shortage of skilled manpower. The construction sector in Nigeria is still struggling to recover from the aftermath of the nigerian general strike of 2013. The sector is also heavily regulated, which adds to the cost of doing business.

This puts property developers in a very challenging situation. They need to balance demand for their products with the financial capacity of their customers.

Inadequate Infrastructure

Infrastructure is another big challenge facing the property development industry in Nigeria. The country’s infrastructure is inadequate in many key areas, which has a negative impact on the property development industry.

Neglecting infrastructure and facilities has a negative impact on the marketability of a property development project. Inadequate infrastructure can lead to poor access to services, which in turn affects the value of a project. This is especially problematic in Lagos where property developments are often located close to, but outside of, the city.

Lack of infrastructure also affects project timelines. This makes it difficult for property developers to meet strict deadlines. This can lead to cost overruns and, in extreme cases, project cancellation.

Weak Land and Construction Processes

Another challenge facing the property development industry in Nigeria is the country’s weak land and construction processes. A lack of transparency in land and construction processes can affect the timing and costs of a project.

This challenge can be overcome by applying Lean construction and project management methods. These methods can help streamline project timelines and reduce costs by identifying inefficiencies and mistakes early in the process.

Inadequate Legal Framework

The property development industry in Nigeria is bedeviled by an inadequate legal framework. This problem stems from the country’s colonial past.

As a result of this, property titles in Nigeria are often unclear or inaccurate. This challenge affects the assessment and collection of taxes on real estate. It also hampers the government’s efforts to control corruption in the sector.

High Corruption Risk

The property development industry in Nigeria is also affected by high corruption risk. This is a legacy of the country’s colonial past. The colonial government favored established elites, who were often property developers. As a result, the legal and institutional framework in the country was flawed.

This issue was brought to the forefront by the 2016 elections. There were accusations of massive vote-buying and election-rigging. As a result, the government initiated a wide-ranging corruption investigation. The probe has led to arrests and prosecutions of government officials from all major political parties.

Rising Cost of Credit

The rising cost of credit is also a challenge facing the property development industry in Nigeria. This is due to the increasing cost of financial services in the country.

It is important for property developers to factor this increase into their budgets. This will help them better manage their costs and stay on course with project timelines.

It will also help them make better-informed decisions about the financing options that best suit their needs.

Factor of Safety for Foreign Investors

One of the challenges property developers in Nigeria face is the factor of safety for foreign investors. Investors considering investing in the Nigerian property market should be aware of the factor of safety requirements.

Investors should make sure they are comfortable with the level of risk they are willing to take. They should also understand that investing in property in Nigeria comes with a level of uncertainty that is higher than investing in other countries.

Bottom Line

Despite the challenges facing the property development industry in Nigeria, it is an important part of the country’s economy. The sector employs millions of people and has the potential to create an even greater number of jobs in the future.

For developers, this means it’s important to stay up-to-date on the latest trends in the industry. They should also invest in training and mentorship programs to support the growth of new businesses.

With a little bit of determination, property development in Nigeria can be a rewarding and lucrative career choice.