Lagos has emerged the most expensive place to build real estate across Africa.
Making this submission was Bruce Haswell, Director Turner & Townsend, Austria.
According to him, Lagos is the most expensive place to build in Africa at $2,056 per m2, comparing to Kampala for less than half of this per square meter.
He stated this in his keynote presentation titled ‘Key signals in 2022-Is it a time for some caution or more innovation” at the 2022 Real Estate Discussions and Awards organised by Thinkmint Nigeria.
“Globally, Lagos is the 56th most expensive city to build in compared to the 88 cities that were surveyed internationally. The results of this year’s survey were markedly different from our 2021 survey results, which highlight the enormous pressures facing construction markets and the impact they are having on construction costs,” Haswell said.
“In our 2021 survey, there were 11 markets that were expected to have construction cost inflation of ten per cent or more in 2021. In our 2022 survey results, there are 38 markets that suggested they experienced inflation of ten per cent or more. Rising building material costs have been one of the key drivers of higher construction cost inflation over the last 12 months. Global supply-chain disruptions, high commodity prices, higher shipping costs, and supply shortages have caused this strong price growth.”
He further mentioned that the major reason for the global challenge to construction was as a result of general inflation, increasing interest rates, the rising cost of construction, excessive lead times, geopolitical issues, transportation bottlenecks, and recent COVID-19-related shutdowns in China having a considerable impact on supply, and creating lengthy delays for many construction goods.
Tagged: ‘Recovery’ the event which held in Lagos, was well attended by Comrade Ini Ememobong Essien, Commissioner for Information and Strategy who represented Akwa Ibom State Governor Udom Emmanuel.
In his day two keynote presentation, the Chief Executive Officer of Economic Associates, Ayo Teriba spoke extensively on the key assets to amass as a source of wealth assets.
Teriba emphasised that real estate remained the queen of all sectors, with slum eradication, rural urbanisation and urban renewal being the three slogans trending in the space.
“Much work need to be done as only 24 per cent of the 200 million populace in Nigeria live in habitable urban homes, while most people in search for greener pastures move to urban slums,” he further commented.
Also speaking at the event, the Managing Partner of Thinkmint Nigeria, Imelda Usoro-Olaoye, said that the programme is a celebration of Innovation, Leadership, and Growth in the Real Estate and Property Industry.