Inflation and construction costs push Nigerian property prices higher, developer says
Taiwo Idowu, managing director of JustOne Homes, attributes rising Nigerian property prices to demand, inflation, costly materials, exchange-rate movements and infrastructure expenses. He says developers should pursue flexible payments and affordable housing, while warning that dishonest operators and weak professional standards continue to undermine confidence in the sector.
Rising demand, inflation and higher construction costs are driving property prices upward in Nigeria, according to Taiwo Idowu, managing director and chief executive of JustOne Homes. In an interview, Idowu said Nigeria’s growing population and limited land supply were increasing the value of property. He added that inflation, exchange-rate fluctuations, infrastructure expenses and the general cost of doing business had increased the amount developers needed to complete projects.
He cited higher prices for cement, steel, finishing materials, labour and logistics. A house that could have been built for a particular amount two or three years ago may now require significantly more funding, he said. Idowu said the industry should not become inaccessible to ordinary Nigerians.
He recommended flexible payment structures, affordable housing solutions and developments designed to make ownership more achievable. He described competition as potentially beneficial but said the sector’s relatively low barriers to entry in some areas allowed people to present themselves as practitioners without sufficient knowledge, systems or professional standards. According to Idowu, the conduct of dishonest operators damages the reputation of legitimate businesses.
He said clients increasingly wanted proof that developers could be trusted, adding that integrity was particularly important because property transactions involve people’s savings and long-term plans. Idowu also identified Ogun State as an important development market because of its boundary with Lagos, where population growth, congestion and rising prices are creating demand for alternatives. He said infrastructure development, industrial expansion and new business corridors could support residential, commercial and industrial opportunities.
He said JustOne Homes was seeking locations where infrastructure, economic activity and population growth could create long-term value, rather than entering the state only because other companies were doing so.
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